DoorDash acquires Instacart for $17 billion, doubling down on hyper-local delivery

DoorDash (DASH) announced plans to acquire hyper-local grocery delivery provider Instacart (CART) on Thursday morning in a deal valued at $17 billion. DoorDash, which is primarily known for its restaurant food delivery business, will pay $65 per Instacart share, a 26% premium over the stock's Oct. 22 closing price. The transaction includes 75% cash, with Instacart stockholders able to elect cash, DoorDash stock, or a combination of both. Instacart's board of directors unanimously approved the deal, according to a press release. "Grocery is one of the hardest things to get right online," DoorDash CEO Tony Xu said in the release.