Startups & Funding
Instacart reportedly explored a sale to DoorDash, Uber
Instacart has reportedly held early talks to sell itself to DoorDash, and separately to Uber, which is said to have pulled out.
Instacart has brought in an investment bank to weigh its options and has held acquisition talks with DoorDash, The Information reported Friday. Bloomberg separately reported that the grocery-delivery company also talked to Uber, though Uber is said to have pulled out of the talks. An Instacart spokesperson declined to comment.
The reports sent Instacart shares up more than 9.2% on Friday, while Uber and DoorDash stock declined. Instacart’s market cap is already more than $13 billion, and its stock is up 25% so far this year — a position that Bloomberg suggested could make now a good moment to sell, before competition in grocery delivery intensifies further. Bloomberg cautioned the talks are early and might not result in a sale.
Why it matters
A sale to DoorDash or Uber would reshape the grocery-delivery market just as it’s getting more competitive, consolidating one of its remaining independent players under a rival platform — though Bloomberg stressed the talks are still early and might not lead to a deal.