DoorDash in exclusive talks to acquire Instacart
A combination would create a delivery giant.
DoorDash is reportedly in exclusive negotiations to acquire Instacart, according to individuals privy to the situation. While a deal remains uncertain, it could potentially be finalized, according to these sources. The terms of any transaction, including price and structure, have not been disclosed. Both Instacart and DoorDash have declined to provide any comment on the matter.
The possibility of an Instacart acquisition first emerged from the Information, which also reported that Uber had expressed interest in the company, though Bloomberg later suggested that Uber's interest had diminished. A merger would result in a dominant player in the home delivery sector, integrating Instacart's grocery-focused platform with DoorDash's restaurant-focused one.
DoorDash had previously shown interest in Instacart in 2021, but the talks ended due to valuation concerns and potential antitrust scrutiny, issues that no longer appear to be significant. Instacart's valuation is estimated at around $12 billion, but it could potentially be acquired for approximately $15 billion at a conservative premium.
DoorDash, on the other hand, has a market capitalization of about $75 billion. The grocery and delivery industry is highly competitive, primarily driven by Amazon and Walmart, which have put pressure on traditional retailers. Historically, such mergers have faced antitrust challenges, but the Trump administration had adopted a more lenient approach to these types of deals.
However, should Democrats gain control of the government in the upcoming election, they are expected to scrutinize antitrust approvals more closely, potentially impacting the outcome of the proposed merger.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
