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DoorDash is reportedly in advanced talks to acquire food delivery company Instacart in a deal that could value it at around $17 billion.
An agreement could be reached as early as this week, although there is no guarantee that the talks will result in a deal, The Wall Street Journal reported Monday, citing people familiar with the discussions.
Investors sent the company’s stock in the opposite direction after the report.
Instacart shares rose about 8% Monday, while DoorDash shares fell about 6%.
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DoorDash is reportedly in advanced talks to acquire food delivery company Instacart. (Andrew Harrer/Bloomberg via Getty Images)
Instacart was valued at about $13 billion before news of the potential transaction emerged, compared with DoorDash’s market capitalization of about $73 billion, according to The Wall Street Journal.
The acquisition will give DoorDash a bigger foothold in the grocery delivery market as it continues to expand beyond its roots in restaurant delivery.
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Instacart shares rose about 8% Monday, while DoorDash shares fell about 6%. (Photo by Cheng Xin/Getty)
Instacart was previously considered for sale in 2021.
Since then, competition in grocery delivery has intensified as Walmart and Amazon have expanded their offerings, The Wall Street Journal reported.
The potential Instacart deal comes about a year after DoorDash completed its acquisition of British food delivery company Deliveroo.
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The acquisition will give DoorDash a bigger foothold in the grocery delivery market as it continues to expand beyond its roots in restaurant delivery. (Jakub Porzycki/NurPhoto via Getty Images)
The transaction becomes effective in 2025 after court approval, expanding DoorDash’s global footprint and adding to Deliveroo’s operations in several international markets.
DoorDash also completed its acquisition of Finnish delivery company Wolt in 2022, an all-stock transaction that will increase the combined company’s presence to 27 countries by then.
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DoorDash and Instacart could not immediately be reached by FOX Business for comment.