Instacart explores potential sale to Uber or DoorDash

Summarised from 2 outlets · Updated 24 Oct, 17:44 · Archive

Grocery delivery company Instacart has held preliminary discussions with Uber and DoorDash about a potential sale, according to The Information. An investment bank is helping Instacart assess its options. Instacart is currently valued at roughly $13 billion, though analysts estimate a takeover could fetch $16 billion to $17 billion if a buyer pays a 30 to 40 per cent premium based on recent public tech deals.

Neither Instacart nor the potential buyers have commented. A takeover could face antitrust scrutiny given Uber and DoorDash's competing grocery delivery operations. Antitrust concerns helped derail DoorDash's earlier discussions to acquire Instacart in 2021, when the valuation was between $40 billion and $50 billion, partly over concerns about securing regulatory approval during the Biden administration.

Instacart's stock price spiked more than 9 per cent on news of the potential sale, whilst Uber and DoorDash stock declined. Instacart was valued at $39 billion in a 2021 private funding round during the pandemic-era boom in grocery delivery, but by its 2023 public offering the valuation had fallen to roughly $10 billion. Revenue growth has slowed significantly, from 19 per cent in 2023 to 11 per cent in each of the following two years.

How it is being reported

• Instacart reportedly discussed selling itself with DoorDash and UberInstacart might sell itself to a larger competitor.TechCrunch · 24 Oct, 17:30
• Instacart explores potential sale, holds talks with Uber and DoorDash: reportThe report put Instacart's value at roughly $12 billion and said an investment bank is helping the company assess its options.New York Post · 23 Oct, 23:05

In this story: Instacart · Uber · DoorDash · The Information

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