DoorDash in advanced talks to acquire Instacart, WSJ reports

DoorDash is in advanced talks to acquire grocery-delivery rival Instacart, with a deal potentially coming as soon as this week, The Wall Street Journal reported Monday, citing people familiar with the matter. The talks could still fall apart.

Instacart shares rose 4% Monday, extending Friday’s 9% gain after The Information reported the company was exploring a sale and had held preliminary discussions with DoorDash and Uber. DoorDash shares fell 5% today.

Instacart, valued at about $12 billion before the reports, has faced slowing growth since its 2023 IPO amid competition from DoorDash, Uber and Amazon. 

A combination would unite two major players in food and grocery delivery but could face significant antitrust scrutiny given their overlapping businesses. DoorDash and Instacart held acquisition talks in 2021 at a reported Instacart valuation of $40 billion to $50 billion, but those discussions collapsed partly over regulatory concerns.

The latest talks remain ongoing, and a deal is not guaranteed.