DoorDash is in advanced talks to acquire Instacart, a US grocery-delivery and retail-technology company, in a deal that could value it at about US$17 billion, according to a source familiar with the matter.

A deal could be finalized by October 28, though a deal is not guaranteed. The source said Instacart’s talks with Uber were no longer active.

Instacart shares rose about 8% in regular trading, while DoorDash fell about 6%.

The deal would bring combine DoorDash’s grocery and retail marketplace with Instacart’s delivery operations and growing advertising business. DoorDash has said it leads third-party marketplaces in US grocery and retail order volume.

The companies also compete in online grocery. eMarketer described Instacart as the US grocery-delivery leader, with DoorDash and Uber catching up.

Delivery platforms are expanding into grocery and retail as labor costs rise, regulation of delivery workers tightens, and the pandemic-driven online-ordering boom fades.

🔗 Source: Reuters

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