DoorDash is in advanced talks to acquire Instacart in a deal that could value the grocery-delivery platform at about $17 billion, according to a source who spoke to Reuters. Instacart shares rose on the news, while DoorDash shares fell.
DoorDash is in advanced talks to acquire Instacart in a deal that could value the grocery-delivery platform at about $17 billion, a source familiar with the matter told Reuters on Monday. The Wall Street Journal first reported the developments.
The person said a deal may be finalized as soon as Wednesday, although there are no guarantees it will come together. Instacart's talks with Uber are no longer active, the person added.
Instacart gains, DoorDash slides
Instacart shares finished 7.9% higher on Monday, while DoorDash shares fell 6.1% in the regular session, according to MarketWatch. Investors appeared less enthusiastic about the impact on DoorDash.
DoorDash's stock is already down 25.6% so far this year, amid concerns over cautious consumers and artificial-intelligence disruptions. Instacart's stock is up around 35% year to date, MarketWatch reported, and the company had a market value of about $13 billion as of Friday's close, per Reuters.
Analysts point to Walmart and Amazon
Wedbush analysts said in a note on Monday that a deal made sense, as Instacart loses some online grocery-delivery business to Walmart and Amazon. They said a combined company could go head to head with those retail giants.
Walmart leads online grocery sales with a 30.9% market share, ahead of Amazon's 23.6%, the Wedbush analysts said. Instacart and Kroger trailed both.
Bernstein analysts, in a Monday note, said the two companies joined together would be an "indispensable solution", according to MarketWatch. They added that any deal would require some combination of debt, cash on-hand or equity, and said they were surprised at how quickly a possible deal was moving.
Separately, Instacart said in a regulatory filing on Monday it would wind down its Caper Cart smart shopping-cart business by the end of Q2 2027, with expected pre-tax charges of $55 million to $80 million.
Sources: Investing.com (Reuters), MarketWatch
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