Instacart Reportedly Discussing Sale with DoorDash and Uber as Shares Jump Over 9%
Reports indicate Instacart has hired an investment bank and held early acquisition talks with competitors DoorDash and Uber, driving a significant stock rally amid speculation of industry consolidation.
According to TechCrunch, US grocery delivery company Instacart may be seeking to sell itself to a larger competitor. The Information reported on Friday that the company has hired an investment bank to help evaluate its strategic options and has held acquisition talks with DoorDash. Bloomberg additionally reported that Instacart has also spoken with Uber, although sources indicated Uber walked away from those discussions.
Instacart currently holds a market capitalization exceeding $13 billion, with its stock price up 25% year-to-date. The company may view this as an opportune moment to sell at a desirable price before the grocery delivery market becomes more competitive. However, Bloomberg noted that these are early discussions that might not result in a sale. Following the reports, Instacart's share price spiked more than 9.2% on Friday, while stocks for Uber and DoorDash declined. An Instacart spokesperson declined to comment.