● Covered by 2 sources · 3 reportsMedium impact3 neutral
Instacart Reportedly Explored Sale to DoorDash and Uber
Key points
- Instacart discussed potential acquisition with DoorDash and Uber.
- An investment bank was hired to evaluate Instacart's options.
- Uber reportedly withdrew from the discussions.
- Instacart's market cap is over $13 billion.
- DoorDash acquired Instacart for $17 billion.
- The acquisition combines the two largest grocery delivery platforms in the US.
- The deal is pending antitrust review.
- DoorDash will pay $65 per Instacart share.
- The boards of both companies approved the deal.
- Instacart's CEO is Chris Rogers.
- DoorDash plans to keep Instacart's brand, enterprise technology products, and app.
- The two brands will continue to operate as separate and independent companies.
Acquisition Discussions Revealed
Instacart, the grocery delivery company, has reportedly held talks regarding a potential sale to larger competitors. The Information reported that Instacart hired an investment bank to explore its strategic options and engaged in acquisition discussions with DoorDash. Bloomberg also reported that Uber was involved in these discussions, though Uber has since reportedly withdrawn.
Market Context and Valuation
Instacart currently holds a market capitalization exceeding $13 billion, with its stock price up 25% year-to-date. This timing may present an opportunity for Instacart to sell at a desirable price, anticipating increased competition within the grocery delivery sector. However, Bloomberg noted that these discussions are in early stages and may not lead to a sale.
Market Reaction
Following the reports of a potential sale, Instacart's share price increased by over 9.2% on Friday. Conversely, the stock prices of Uber and DoorDash experienced declines. An Instacart spokesperson declined to comment on the reports.
Updates
- DoorDash acquired Instacart for $17 billion.
- The acquisition combines the two largest grocery delivery platforms in the US.
- The deal is pending antitrust review.
- DoorDash will pay $65 per Instacart share.
- The boards of both companies approved the deal.
- Instacart's CEO is Chris Rogers.
- DoorDash plans to keep Instacart's brand, enterprise technology products, and app.
- The two brands will continue to operate as separate and independent companies.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
DoorDash announced an agreement to acquire Instacart for $17 billion, paying $65 per Instacart share. This acquisition merges DoorDash's restaurant delivery with Instacart's grocery delivery, creating a dominant player in the on-demand delivery market.
DoorDash acquired Instacart for $17 billion, combining the two largest grocery delivery platforms in the US. This acquisition expands DoorDash's grocery delivery capabilities and consolidates a significant portion of the market, pending antitrust review.
Instacart reportedly engaged in acquisition discussions with DoorDash and Uber, hiring an investment bank to evaluate its options. These talks suggest Instacart may be seeking to sell at a favorable valuation before increased competition in the grocery delivery market.