DoorDash offers $17 billion for Instacart: ‘the largest companies are only eating more and more of the pie’
Source: Fortune ·
It could lead to less competition in the delivery space, which could raise prices for consumers and give grocers fewer partners to negotiate with.
From the source
DoorDash is offering $17 billion to buy Instacart in a deal that could consolidate the grocery delivery business in the U.S. and abroad. The companies say the tie-up would combine DoorDash’s global reach and expertise in logistics with Instacart’s purpose-built technology and long relationships with grocers. It could also help the companies better compete with rivals like Amazon. But it could also lead to less competition in the delivery space, which could raise prices for consumers and give grocers fewer partners to negotiate with. “They were competing for a share of consumers’ wallet,” said Randall Sargent, a partner specializing in grocery and retail at the consulting firm Oliver Wyman. “As a general economic principle, less competition and more consolidation tends to be worse for consumers.” The deal is expected to be finalized by the end of 2027 or in early 2028 if it’s approved by Instacart shareholders and government regulators. Instacart’s name and app will remain Instacart,…