Instacart reportedly explored a sale, with talks involving DoorDash and Uber
Early-stage talks could still end without a deal, but the reports already moved shares of Instacart, Uber and DoorDash.
Grocery delivery firm Instacart may be looking for a buyer, according to several press accounts. The Information says it has retained an investment bank to weigh its strategic options and has held acquisition discussions with DoorDash. Bloomberg adds that Instacart also spoke with Uber, though Uber reportedly stepped away from those talks. With a market value above $13 billion and shares up about 25% this year, Instacart may view now as a favourable moment to sell before competition in grocery delivery intensifies. Bloomberg characterised the talks as preliminary, so no deal is assured. Instacart's shares jumped more than 9.2% on Friday after the reports, while Uber and DoorDash shares fell.
Why it matters
For now the reports signal that Instacart's owners are weighing a sale rather than a deal being agreed. Investors in the three delivery firms have reacted: Instacart's shares rose more than 9.2% on Friday while Uber and DoorDash shares fell. Because Bloomberg described the talks as preliminary and noted they might not produce a sale, the practical change for the market is limited to a shift in expectations about who might own Instacart next.
Matters or hype?
Does this story matter, or is it hype? Vote before you see what everyone else said.