DoorDash offers $17bn to acquire Instacart in major grocery delivery deal

US food delivery giant DoorDash has offered $17 billion to acquire Instacart in a deal that could significantly reshape the grocery delivery industry.

According to the Associated Press, the proposed acquisition would combine two major delivery platforms operating across the United States and Canada.

DoorDash said Instacart would retain its brand and application, while its 600,000 independent shoppers would continue fulfilling customer orders.

The companies also plan to combine their subscription benefits, allowing customers to access services through a single membership payment.

Instacart users would gain access to approximately 50,000 additional stores available through DoorDash.

DoorDash CEO Tony Xu said the combination would help smaller retailers compete against larger businesses.

The proposed deal comes amid growing competition from Walmart, Amazon and other delivery providers.

DoorDash operates in 40 countries and completed more than three billion orders last year, compared with Instacart’s 338 million.

The acquisition would strengthen DoorDash’s position in the expanding grocery delivery market.