DoorDash in advanced talks to acquire Instacart, WSJ reports

DoorDash is reportedly in advanced discussions to acquire Instacart, according to a Wall Street Journal report on Monday. The potential deal might be finalized as early as this week, the source cited by the Journal suggested. Instacart shares enjoyed a 4% increase on Monday, marking a continuation of a 9% gain from the previous Friday.

The news comes after The Information reported that Instacart was actively exploring a sale and had preliminary talks with both DoorDash and Uber. If the acquisition were to proceed, Instacart's valuation could reach approximately $17 billion, according to the Journal. This would represent a significant premium over Instacart's pre-report market value of around $12 billion.

Instacart, currently valued at about $12 billion, has experienced a slowdown in growth since its 2023 IPO. This decline has been attributed to increased competition from DoorDash, Uber, and Amazon. The potential combination of DoorDash and Instacart would bring together two leading names in the food and grocery delivery sectors.

However, the deal could face substantial antitrust scrutiny due to the overlapping nature of their businesses. In 2021, DoorDash and Instacart had engaged in acquisition talks at a reported valuation ranging between $40 billion and $50 billion for Instacart. Those negotiations ultimately faltered, primarily due to regulatory concerns.

As of now, the latest discussions between the two companies are ongoing, and there is no guarantee that a deal will ultimately be reached.