On Thursday, U.S. food delivery company DoorDash, Inc. (DASH.US) opened higher, with gains exceeding 6% as of press time.
On the news front, DoorDash, Inc. (DASH.US) released its third-quarter results before the U.S. market opened. The company reported third-quarter revenue of $4.62 billion, beating expectations of $4.56 billion. It also projected fourth-quarter marketplace Gross Order Value (GOV) of $35.4 billion to $36.4 billion, compared with market expectations of $35.77 billion.
Additionally, DoorDash, Inc. (DASH.US) stated in a press release that it has agreed to acquire Instacart, Inc. (Maplebear Inc.) (CART.US) at a valuation of approximately $17 billion. DoorDash, Inc. (DASH.US) will pay $65 per share in a cash-and-stock deal.
For DoorDash, Inc. (DASH.US), which is already the leading restaurant delivery app in the United States, acquiring Instacart, Inc. (Maplebear Inc.) (CART.US) would expand its presence in the online grocery delivery market. CEO Tony Xu recently described the grocery delivery business as the company's fastest-growing segment.
If the deal closes, DoorDash, Inc. (DASH.US) could simultaneously broaden consumer use cases, deepen merchant services, and strengthen its retail advertising capabilities. Restaurant users could be directed toward grocery shopping, while Instacart, Inc. (Maplebear Inc.) (CART.US) household purchasing users might also increase other local spending. If membership benefits, customer acquisition spending, and fulfillment resources can be effectively coordinated, the platform would have an opportunity to increase its share of user spending, reduce repeat customer acquisition costs, and generate additional revenue from more transactions through advertising and merchant tools.
However, these are potential synergies following the merger, and for now, simply adding orders together cannot be directly equated with increased profits.
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