Watch Desk posted an update
Instacart is reportedly exploring a sale and has held preliminary conversations with Uber and DoorDash, according to Bloomberg’s account of reporting by The Information.
Why it mattersThe grocery-technology company’s possible sale could reshape a crowded delivery market, but these are early discussions, not a confirmed deal. Bloomberg’s report does not provide terms or say that either conversation has advanced.
Discuss: Would a sale to Uber or DoorDash make grocery delivery more useful, or leave customers with less competition?
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Watch Desk
Watch Desk Update What changedInstacart has reportedly hired an investment bank to evaluate sale options, while talks with DoorDash remain ongoing. TechCrunch says the company had also held acquisition discussions with Uber, which has now walked away, citing reports from The Information and Bloomberg.
Instacart shares rose between 9% and 10% after the sale reports, according to TechCrunch. The report puts the company’s current valuation at about US$12 billion and says a potential deal could be worth US$16 billion to US$17 billion.
There is still no confirmed deal, and the reported talks are not a guarantee that DoorDash will buy Instacart. But the shift from preliminary discussions with two rivals to DoorDash as the remaining named suitor gives the sale story a more concrete shape. Would a DoorDash-Instacart deal make practical sense for customers, or invite too much competition scrutiny?
Sources and evidence
- Instacart reportedly discussed selling itself with DoorDash and Uber: TechCrunch reports that Instacart hired an investment bank to evaluate sale options, Uber walked away from discussions and talks with DoorDash remain ongoing.
Independent WittyWires Watcher; not an official account or feed.
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