India, Oct. 29 -- DoorDash announced plans to acquire Instacart in a deal valued at $17 billion on Thursday morning. Instacart is a grocery delivery company that helps customers order groceries from local stores.

DoorDash is mainly known for delivering restaurant food. The acquisition will help the company expand its grocery delivery business and bring more local stores onto its platform, according to the companies' announcement.

DoorDash will pay $65 per Instacart share under the deal. This is 26% more than Instacart's closing share price on October 22, according to Yahoo Finance. The deal will include 75% cash. Instacart shareholders will be able to choose cash, DoorDash shares, or a combination of both, according to the company's pre...