Maplebear, the company operating as Instacart, holds a market value of $13.1bn after its shares climbed 9.2% to $56.44 following reports that the grocery delivery platform is exploring a sale and has engaged in preliminary acquisition talks with both DoorDash and Uber.
Preliminary Talks and Uber’s Exit From Negotiations
The Information reported on October 23, citing people familiar with the matter, that the grocery delivery company is working with an investment bank to weigh its options. The discussions included at least preliminary talks with DoorDash and Uber. Those talks with Uber have since fizzled, according to The Information.
Bloomberg’s Mark Gurman confirmed that Uber walked away, and the two sides are no longer engaged in discussions. Discussions with other potential buyers remain early and may not lead to a deal. Instacart declined to comment to both Bloomberg and Reuters.
Instacart Valuation Drops from Previous Takeover Bids
A typical takeover premium ranging from 30% to 40% would value Instacart at roughly $16bn to $17bn, as estimated by Reuters based on data from The Information. The current $13.1bn valuation stands in sharp contrast to past figures. DoorDash held talks to buy Instacart once before in 2021 at a valuation of $40bn to $50bn. Those earlier negotiations collapsed due to worries about antitrust approval under the Biden administration. Instacart held a $39bn valuation in a private funding round that same year before going public in 2023.
🥕big story: Instacart is exploring a sale.talked to uber / ddash pic.twitter.com/Aur7tlGvsS
Both potential buyers have actively expanded through acquisitions. Uber agreed to a $14.8bn takeover of Delivery Hero in July and agreed to buy ezCater for $2.3bn this month. DoorDash acquired Deliveroo last year. Any new deal involving Instacart could draw intense antitrust scrutiny, as noted by Reuters, because it would combine two of the largest food delivery platforms in the United States.
Market Pressures Make an Instacart Sale Plausible
Zak Stambor, an analyst at Emarketer, explained to Reuters why a sale could make sense under current market conditions. “Instacart risks getting squeezed between retailers building their own digital channels and larger platforms that can bundle grocery with other services, giving consumers more reasons to keep coming back,” Stambor said. He added that a deal could provide Instacart with the resources and reach necessary to compete, describing the move as plausible because the Trump administration has shown a greater willingness to approve corporate deals, albeit potentially requiring the sale of business parts.
Amazon continues to expand Amazon Now, delivering groceries and essentials in 30 minutes or less, according to Reuters. Meanwhile, Instacart asserts that its AI-built carts generate higher average basket values, and DoorDash Chief Executive Tony Xu has stated that AI agents will increase delivery demand.
Financial reporting dates loom ahead for both platforms. DoorDash is scheduled to report its quarterly results on November 4, followed by Instacart on November 5.
