DoorDash announced Thursday that it has agreed to buy rival grocery service Instacart in a deal valuing the company at approximately $17 billion. The acquisition, which will be paid in cash and stock, values Instacart at $65 per share.
The deal combines the country's largest restaurant delivery service with its biggest online grocery platform. By uniting two of the nation's largest grocery and food-delivery companies, DoorDash aims to supercharge its grocery delivery business.
This acquisition follows a week of speculation regarding a potential deal. The move serves as the latest sign of consolidation within an increasingly competitive delivery market.