Instacart Reportedly Explored a Sale in Talks With DoorDash, Uber

Instacart is reportedly weighing a sale to a larger rival. Multiple news reports published Friday say the grocery delivery company has hired an investment bank to help it evaluate its options and has held acquisition talks with DoorDash.

A separate report says Instacart also spoke with Uber, though Uber reportedly walked away from those discussions. The same report cautioned that the talks are at an early stage and may not lead to a deal. An Instacart spokesperson declined to comment.

Market reaction

Instacart's share price jumped more than 9.2% on Friday after the reports surfaced. Shares of both Uber and DoorDash declined on the day.

The company's market capitalization now stands above $13 billion, and its stock is up 25% so far this year. That run could make this an attractive moment to sell at a favorable price.

Why it matters

The timing may also reflect competitive pressure. The grocery delivery market is expected to become more crowded, and a sale before that happens could let Instacart lock in value while its valuation is strong.

For shoppers, retailers and delivery workers, a combination with DoorDash or another large platform could reshape how grocery delivery is run, from pricing and partnerships to the services bundled with it. None of that is certain, since no deal has been announced and the talks may go nowhere.

What happens next depends on whether Instacart's advisers draw serious bids from DoorDash or other suitors. Uber's reported exit leaves DoorDash as the only named party that has held talks, though Instacart could still choose to stay independent.