DoorDash reported strong third-quarter growth, with records for marketplace gross order value, revenue and net income. Alongside its results, the company announced a definitive agreement to acquire Instacart for $65 per share, with the consideration to be at least 75% cash and up to 25% DoorDash stock.
The acquisition would bring the two local-commerce platforms together, but the announcement does not say when the deal is expected to close.
Third-quarter results
- Orders rose 28% year over year to 993 million.
- Marketplace gross order value (GOV)—the value of transactions through the marketplace—increased 36% to $33.9 billion.
- Revenue rose 34% to $4.6 billion.
- Net income attributable to DoorDash common stockholders increased 91% to $466 million.
- Adjusted EBITDA grew 41% to $1.06 billion.
- DoorDash said the quarter set new records for Marketplace GOV, revenue and net income.
- The company cited growth in membership programs, new products and greater selection, as well as work on its technology platform and initiatives in merchant services, artificial intelligence and autonomous delivery.
Instacart acquisition
- DoorDash agreed to acquire Maplebear Inc., which operates as Instacart, for $65 per share.
- Shareholders would receive at least 75% of the consideration in cash and up to 25% in DoorDash common stock. The final mix is subject to shareholder elections and proration.
- DoorDash said it expects the combined scale and technologies to support tools and services for local merchants, more consumer choice and opportunities for delivery workers and Instacart shoppers.
What changes
The proposed deal would combine DoorDash’s and Instacart’s platforms, while the agreed consideration could include DoorDash shares as well as cash. The transaction is an agreement to acquire Instacart, not a completed change in ownership.