Latest / Global Advisors Daily Business News / DoorDash agrees to acquire Instacart for seventeen billion dollars

Transcript

DoorDash agrees to acquire Instacart for seventeen billion dollars · Global Advisors Daily Business News

• 0:10
  Welcome to Global Advisors Daily Business News. I'm Sam. Today is Friday, the thirtieth of October 2026. Let's explore today's business headlines and what they mean for leaders. Please hit like and subscribe for daily updates if you find this useful.
• 0:29
  DoorDash has signed a definitive agreement to acquire Instacart for sixty-five dollars per share, valuing the grocery delivery platform at roughly seventeen billion dollars in equity. The consideration will be at least seventy-five percent cash, with shareholders permitted to elect cash or stock, capped at twenty-five percent equity. Instacart's board of directors has unanimously approved the deal.
• 0:50
  This takeover combines two major delivery footprints. Founded in 2013 in San Francisco, DoorDash operates across forty countries with nine million couriers, completing over three billion orders last year and holding a seventy-three billion dollar market valuation. By comparison, Instacart fulfilled three hundred and thirty-eight million orders.
• 1:09
  Over the past five years, Instacart's share of United States delivery platform spending dropped from twenty-six percent to eighteen percent, while DoorDash grew from forty-four percent to fifty-nine percent.
• 1:21
  DoorDash claims the combination will allow DashPass and Instacart Plus subscribers to pay a single membership fee, saving consumers an estimated one hundred million dollars annually. Instacart users will also gain access to more than fifty thousand additional merchant locations on top of nearly one hundred thousand existing storefronts.
• 1:40
  Completion remains subject to significant regulatory reviews, including Canadian and Israeli approvals and United States antitrust scrutiny. The companies expect closing in late 2027 or early 2028, supported by an agreement where nineteen percent of Instacart shareholder votes are already committed.
• 2:04
  Eli Lilly has raised its full-year revenue outlook after reporting third-quarter results that surpassed Wall Street expectations. Group revenue jumped thirty-eight point six percent year-over-year to twenty-four point four billion dollars, beating estimates by one point seven eight billion dollars. Non-GAAP earnings reached seven dollars and forty-eight cents per share, surpassing consensus by eighty-seven cents.
• 2:25
  Demand for diabetes and weight-loss drugs drove the performance. Worldwide sales of Mounjaro climbed sixty-five percent to ten point seven billion dollars, while Zepbound delivered five point three five billion dollars. Consequently, Lilly lifted its 2026 revenue forecast to between ninety-one billion and ninety-two billion dollars, up five point five billion dollars at the midpoint from its prior guidance range.
• 2:48
  The quarter did reveal softer areas. Sales of Foundayo, Lilly's once-daily obesity pill, missed expectations at one hundred and eighty-four million dollars versus a projected two hundred and thirty-one point two million dollars. The quarter also included roughly nine hundred million dollars in special benefits, including four hundred and ten million dollars in Jardiance milestone payments.
• 3:09
  For leadership, the central challenge is whether Lilly can preserve its market momentum against intensifying competition from Novo Nordisk. Investors will closely track patient adoption of Mounjaro, Zepbound, and Foundayo through the end of the year.
• 3:28
  Microsoft reported nineteen percent revenue growth for its fiscal first quarter, exceeding forecasts as commercial adoption of cloud infrastructure accelerated. Net income rose to thirty-six point six three billion dollars, or four dollars and ninety-two cents per share, compared with twenty-seven point seven five billion dollars a year ago. The earnings figure excluded a roughly two hundred million dollar loss tied to its OpenAI investment.
• 3:52
  For the first time, Microsoft disclosed revenue for Azure cloud directly in dollar terms, reaching thirty-three point one seven billion dollars, up forty-eight percent year-over-year. In the newly formed Agents and Infra division, which encompasses Azure and enterprise cloud software, revenue climbed nearly twenty-five percent to seventy-six point eight billion dollars, beating analyst consensus.
• 4:14
  Chief executive Satya Nadella reported that active users of Microsoft 365 Copilot grew fifty percent from the prior quarter, though specific paid seat numbers were not disclosed. Meanwhile, the higher-end E7 productivity bundle now counts millions of seats.
• 4:30
  However, aggressive capital outlays are impacting cash flow. Free cash flow dropped twenty-seven percent to eighteen point six three billion dollars. Microsoft noted that roughly seventy-five percent of capital expenditure is now concentrated in short-lived equipment such as Intel processors and Nvidia graphics chips. Supply constraints persisted as third-party capacity deliveries shifted into the second fiscal half.
• 4:52
  Meanwhile, Devices and Consumer revenue fell three percent to fifteen point four eight billion dollars, weighed down by higher memory and storage costs.
• 5:07
  In macroeconomic developments, United States federal debt held by the public has exceeded the annual output of the economy for the first time since World War Two. The debt-to-G D P ratio reached one hundred point three percent during fiscal year 2026, marking a historic fiscal threshold.
• 5:24
  The milestone coincides with signs of emerging economic friction. Although third-quarter economic growth reached a three point four percent annual rate, September consumer spending gains of zero point five percent were effectively wiped out after adjusting for inflation.
• 5:39
  Forecasters at Citi point out that previous support from tax refunds has likely faded. Economists at EY-Parthenon expect spending to moderate in the fourth quarter as persistent inflation and elevated interest rates tighten household budgets.
• 5:54
  KPMG chief economist Diane Swonk cautioned that expanding debt loads could put upward pressure on long-term interest rates and borrowing costs. If economic expansion slows while financing rates remain elevated, corporate balance sheets and household budgets will face sharper strain.
• 6:16
  European Central Bank President Christine Lagarde has informed the Governing Council and European Council President António Costa that she will step down on the seventh of February, 2027. Her exit will occur eight months before her official eight-year mandate expires in October 2027. Her successor will be appointed by the European Council following the procedure outlined in Article 283 of the European Union treaty.
• 6:41
  The transition announcement comes during renewed economic strain across Europe. European natural gas prices recently moved above one hundred euros per megawatt-hour, while Brent crude oil surpassed one hundred and fourteen dollars per barrel. With preliminary European Union inflation reaching three point eight percent in October, driven by geopolitical turmoil and the war in Iran, the central bank was forced into consecutive interest rate hikes.
• 7:05
  Political uncertainty in France is further rattling regional markets. Yields on French ten-year government debt recently climbed above five percent before settling near four point nine percent as investors pulled back capital. With markets monitoring the French electoral calendar and the rise of Jordan Bardella's National Rally, selecting the next central bank chief could prove contentious.
• 7:25
  Lagarde will also leave key initiatives unfinished, including the digital euro. Initial pilot testing with central bank staff is scheduled for next summer, well ahead of any formal deployment.
• 7:41
  ServiceNow shares tumbled twenty-seven percent on Thursday in their worst single-day drop on record, following third-quarter results that fell slightly short of Wall Street's profit targets. Revenue still grew comfortably, and management actually nudged up its full-year subscription sales forecast while reporting a surge in new artificial intelligence contracts.
• 8:01
  But the market's severe reaction reflects growing anxiety over whether traditional enterprise software businesses can defend their models as A.I capabilities accelerate.
• 8:11
  Analysts at Citi noted that investors are running out of patience for immediate returns on ServiceNow's investments, such as newly formed engineering teams embedded directly inside client organizations to deploy A.I solutions. While those deployments are building long-term capability, analysts caution that the real financial inflection won't arrive until next year.
• 8:32
  The sharp sell-off highlights how little room for error enterprise tech providers now have when trying to prove that heavy A.I spending will quickly translate into bottom-line gains.
• 8:48
  Billionaire investor Mark Cuban is forecasting a dramatic shift in how startups compete with established corporations. Speaking on The a16z Show, Cuban argued that sluggish corporate adoption of artificial intelligence could clear the path for a solo founder, what he described as a trillionaire in the basement, relying on teams of automated A.I agents rather than a massive corporate payroll.
• 9:09
  In his view, many executive teams still struggle to grasp how machine intelligence reshapes their business, leaving slow-moving incumbents vulnerable to nimble outsiders.
• 9:19
  To highlight that vulnerability, Cuban recalled asking ChatGPT to draft a competitor to a consumer food brand's best-selling cookie in just three minutes, startling an executive. However, Cuban added an important qualification: artificial intelligence is book smart rather than street smart, so it still depends on human guidance to succeed.
• 9:38
  While lower experimentation costs can certainly help small teams test new ideas, generating a concept on a screen remains a very different challenge from managing physical production, distribution channels, and customer trust.
• 9:51
  That's it from me, Sam. Thanks for listening. Follow the show on Spotify, YouTube, Apple Podcasts, Amazon Music, or your favourite podcast platform, and join our WhatsApp channel for free updates. Until next time.