The key facts

  • Instacart hired an investment bank and discussed a sale with DoorDash; talks with Uber, according to Bloomberg, ended
  • The company's market capitalization exceeds $13 billion, and its shares are up 25% since the start of the year
  • On the news of a possible sale, Instacart shares rose more than 9.2%, while Uber and DoorDash shares declined

Talks about a possible sale

Grocery delivery service Instacart may be sold to a larger competitor, several outlets report. According to The Information, the company has hired an investment bank to evaluate its options and held talks about an acquisition with DoorDash. Bloomberg, in turn, reported that Instacart also held talks with Uber — however, according to the outlet, Uber withdrew from those discussions.

Financial figures and market reaction

Instacart's market capitalization currently exceeds $13 billion, and its share price has risen 25% since the beginning of the year. TechCrunch notes that the company may see the current moment as a good time to sell at an attractive price — before competition in the grocery delivery market intensifies. At the same time, Bloomberg emphasized that the discussions are at an early stage and may not result in a deal. An official Instacart spokesperson declined to comment. On the news of a possible sale, the company's shares rose more than 9.2% on Friday, while shares of Uber and DoorDash declined.

Why it matters

The event affects the entire US grocery delivery market: a possible acquisition of Instacart by one of its competitors would change the balance of power among the largest players. For investors, the practical significance has already shown up in stock movements — Instacart's 9.2% share price jump and the decline in Uber and DoorDash shares on Friday reflect market expectations about a potential deal. It remains unclear whether the talks will end in a sale: according to Bloomberg, the discussions are at an early stage, and none of the companies has officially commented on the situation.