DoorDash in Advanced Talks to Buy Instacart in Deal Valued at About $17 Billion
DoorDash is in advanced talks to acquire Instacart at a value of around $17 billion, according to people familiar with the matter, though the talks could still fall apart.
DoorDash is in advanced talks to acquire food delivery rival Instacart, according to people familiar with the matter cited by The Wall Street Journal. A deal could be completed as soon as this week and could value Instacart at around $17 billion, the people said, while adding that there is no guarantee the talks will lead to a deal.
Instacart, which went public in 2023, had a market value of around $13 billion before the Journal reported the talks. Its shares rose roughly 8% on Monday after the report. DoorDash, with a market value of around $73 billion, saw its shares drop around 6% on Monday.
What Instacart would add to DoorDash
Instacart’s core business is online grocery shopping and convenience home delivery from retailers. Buying it would add a large grocery delivery operation to DoorDash’s services. DoorDash already provides food delivery from retailers such as Kroger, Safeway and Aldi, and it has expanded its retail partnerships to brands including Macy’s, CVS and Target.
DoorDash began as a food delivery company for restaurants, and the Journal reports that it now leads that part of the market. The company is also exploring new ways to deliver and take orders, including through drones and texts to chatbots.
A sale explored before, and a rival that stepped back
Instacart also explored a sale in 2021, when its shares were trading at a much higher price and the company controlled more of the food delivery market. Walmart and Amazon have since become more formidable challengers in delivery, according to the Journal.
The Information had earlier reported that Instacart had attracted takeover interest from DoorDash and Uber. The talks with Uber are no longer active, according to the people familiar with the matter cited by the Journal. The report gave no price structure or closing date for a possible DoorDash deal, and the people cautioned that the talks could still fall apart.
Reporting based on coverage by The Wall Street Journal.
