Instacart reportedly discussed a sale with DoorDash and Uber
Grocery delivery company Instacart is reportedly weighing a sale to a larger rival and has already spoken with DoorDash. The reports lifted Instacart's share price on Friday.
Instacart, the US grocery delivery platform, may sell itself to a larger competitor, according to several news reports published on Friday, October 24. The story matters because a deal could reshape the grocery delivery market, where major players such as DoorDash and Uber also operate.
What the reports say
The Information reported that Instacart has hired an investment bank to help it assess its options. According to the outlet, the company has already held acquisition talks with DoorDash, a delivery services company.
Bloomberg reported that Instacart has also spoken with Uber, the ride-hailing and delivery company. Uber, however, reportedly walked away from those discussions.
Market reaction
Instacart currently has a market capitalization of more than $13 billion, and its stock is up 25% since the start of the year. After the reports appeared on Friday, Instacart's share price jumped by more than 9.2%, while Uber and DoorDash shares declined.
The company may see this as a good moment to sell at an attractive price, before the grocery delivery market becomes more competitive. Bloomberg stressed, though, that the talks are at an early stage and may not lead to a sale.
TechCrunch has contacted Instacart for comment.
