DoorDash in advanced talks to acquire Instacart for $17b
Instacart shares rose about 8% in regular trading, while DoorDash fell about 6%.
Instacart, the popular grocery delivery company, may be considering a sale to a larger competitor, according to recent reports. The Information stated that the company has engaged an investment bank to assess its options and has engaged in acquisition discussions with DoorDash. Bloomberg added that Instacart has also spoken with Uber, although the discussion reportedly did not progress beyond that stage.
Instacart's market capitalization stands at over $13 billion, and its shares have surged 25% this year. The potential sale could be a strategic move for the company to capitalize on the current market situation before the grocery delivery industry becomes more competitive. However, Bloomberg pointed out that these are preliminary talks and may not lead to an actual sale.
TechCrunch has reached out to Instacart for a statement on the matter. The news of a potential acquisition prompted a significant increase in Instacart's share price by over 9.2% on Friday, while shares of Uber and DoorDash experienced a decline.
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- Sources: DoorDash is in advanced talks to acquire Instacart, and the deal could be completed as soon as this week (Heather Haddon/Wall Street Journal) wsj.com
- Sources detail how Ramp investors Joe Lonsdale and Keith Rabois pushed US lawmakers to probe rival Airwallex's China ties after Airwallex scrapped a Ramp deal (Michael Roddan/The Information) theinformation.com
- Instacart reportedly discussed selling itself with DoorDash and Uber techcrunch.com
- Instacart reportedly explores sale talks with DoorDash, Uber techinasia.com
