Instacart in talks with DoorDash and Uber for sale, The Information reports

Instacart is reportedly in talks to potentially sell its grocery delivery business, according to a report by The Information. Sources familiar with the matter indicate that Uber and DoorDash have held preliminary discussions with the company. Instacart's market capitalization stands at approximately $12 billion. If acquired by either Uber or DoorDash, the acquisition could bolster the buyer's ambitions in online grocery delivery by merging Instacart's existing marketplace and retailer connections with their own extensive delivery networks and customer bases.

However, such a deal could face antitrust scrutiny due to the consolidation of two of the largest food delivery platforms in the US. In July, Uber announced a $15 billion acquisition of Germany's Delivery Hero to establish itself as the largest food delivery group outside China. DoorDash's shares experienced a decline of over 4% following the Instacart report, while Uber's shares dropped nearly 3%.

Instacart did not comment on the reports, while Uber and DoorDash have not yet responded to requests for comment. The report suggests that a typical takeover premium of 30% to 40% would value Instacart at around $16 billion to $17 billion. In 2021, DoorDash had attempted to acquire Instacart, which would have valued the grocery delivery company between $40 billion and $50 billion.

However, the talks were halted due to concerns about obtaining antitrust approval under the Biden administration, as stated in The Information's report.