Grocery delivery company Instacart is weighing a possible sale after preliminary discussions with Uber and DoorDash. The Information reported Friday, October 23, citing people familiar with the matter. The report sent Instacart shares up about 9% by market close. The company carried a market value of roughly USD 12 billion at Thursday's close.
Talks about a transaction remain uncertain, and neither a sale nor a buyer has been confirmed. Both potential buyers already compete in grocery delivery as well as restaurant orders.
Instacart Share Rally Follows Reported Sale Discussions
The Information said the parties had held early conversations as Instacart explored its options. The report did not establish that those discussions would produce an agreement. A sale therefore remains a possibility rather than an announced transaction.
The reported talks also came with a potential price range. Based on takeover premiums of 30% to 40% seen in recent public technology deals, the report estimated a valuation of about USD 16 billion to USD 17 billion. That figure represents a possible transaction value, not a confirmed offer from Uber or DoorDash. Neither company has agreed publicly to pay that amount.
Investors responded differently across the three companies on Friday. Instacart gained roughly 9%, while Uber shares fell about 3%. DoorDash declined around 4% by the close. The market reaction followed news of possible talks, not a completed sale. For comparison, the S&P 500 lost about half a percent and the Nasdaq slipped roughly 0.2%.
Uber and DoorDash did not immediately respond to requests for comment. As a result, the public account of the possible sale rested on reporting about early talks, rather than statements confirming negotiations from the companies themselves.
Grocery Delivery Competition Shapes Potential Buyers' Interest
A takeover could bring together Instacart's online grocery marketplace and retailer relationships with a buyer's delivery network and customer base. For either Uber or DoorDash, that combination could support expansion in grocery orders alongside their existing food delivery operations.
The competition already extends beyond traditional restaurant delivery. Both DoorDash and Uber Eats have been expanding their grocery and convenience offerings. Instacart, in turn, reduced the minimum order for free delivery to USD 10 for Instacart+ members last year, as the rival services pushed further into the category.
Amazon is also expanding its quick delivery service, Amazon Now. The service promises groceries and other essentials within 30 minutes or less. That expansion adds another competitor to a market where Instacart already works with retailers through its established marketplace.
Emarketer analyst Zak Stambor pointed to pressure from two directions. Retailers are developing their own digital sales channels, while larger delivery platforms can offer groceries alongside other services. He said a sale could give Instacart greater resources and reach than it has as a standalone business.
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Antitrust Concerns Recall Failed DoorDash Talks in 2021
Combining Instacart with Uber or DoorDash would expand the reach of companies already active in U.S. food and grocery delivery.
That concern has surfaced before. DoorDash held acquisition talks with Instacart in 2021, when a possible transaction carried a valuation between USD 40 billion and USD 50 billion, according to an earlier report by The Information. Worries about approval under the Biden administration ended those discussions.
Stambor said the Trump administration has shown greater willingness to approve acquisitions. Still, he noted that regulators could require a buyer to sell portions of a business. His assessment did not amount to a prediction that any Instacart transaction would receive approval.
The latest discussions also follow other consolidation activity. Uber agreed in July to buy Germany's Delivery Hero in a deal valued at nearly USD 15 billion.
Final Thoughts
Instacart's reported sale exploration followed preliminary contacts with Uber and DoorDash and a roughly 9% rise in its shares. A typical takeover premium suggests a possible USD 16 billion to USD 17 billion price, but no deal is certain. Competition and antitrust concerns remain central to any possible purchase.