Instacart has held acquisition discussions with DoorDash and Uber, according to multiple news reports, as the grocery delivery company weighs a possible sale to a larger competitor. The talks put Instacart, which carries a market capitalization above $13 billion, at the center of consolidation questions in the US grocery delivery market. A deal, if reached, would reshape a segment where the company currently competes with both suitors.
The Information reported Friday that Instacart has retained an investment bank to help it evaluate its options and that it has held acquisition talks with DoorDash. Bloomberg separately reported that Instacart has also talked to Uber, though Uber reportedly stepped away from those discussions. The reports describe early-stage conversations that might not lead to a sale, according to Bloomberg.
Instacart's stock is up 25% for the year to date, a run that could make this an attractive moment to sell at a favorable price. The company may view the window as narrowing as competition in grocery delivery intensifies. Uber and DoorDash shares declined on the reports, while Instacart's share price rose more than 9.2% on Friday.
The reports did not disclose terms, timing or which parties initiated the conversations, and none of the companies involved has confirmed a transaction. Instacart has not publicly commented on the matter; TechCrunch said it had reached out to the company for comment.
Instacart's market position and its year-to-date stock gain give it leverage in any negotiation, but the reported Uber discussions indicate that at least one suitor has already declined to proceed. DoorDash's interest, as described by The Information, remains the more active thread in the reports. The outcome of the investment bank's review is not known.
For US consumers, a sale could alter the field of grocery delivery apps competing for their orders, though the reports give no indication of how or whether services would change. Instacart's investors appear to have greeted the possibility of a deal positively, based on Friday's share move. The company's next public statements on its strategic review have not been disclosed.
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