Instacart in talks with DoorDash and Uber for sale, The Information reports

Oct 23 (Reuters) - Instacart is exploring a possible sale and has held preliminary discussions with potential buyers including Uber and DoorDash, The Information reported on Friday, citing people familiar with the matter.

Shares of Instacart closed about 9% higher and were down marginally in extended trading. The company currently has a market value of about $12 billion.

A potential takeover by Uber or DoorDash could bolster the buyer’s online grocery delivery ambitions by combining Instacart’s established marketplace and retailer ties with its own vast delivery network and customer base.

But either deal could draw antitrust scrutiny, as it would bulk up two of the biggest food-delivery platforms in the US and add to a wave of consolidation across the industry. In July, Uber struck a nearly $15 billion deal to buy Germany’s Delivery Hero, to create the largest food-delivery group outside China.

Shares of Uber closed down nearly 3% while DoorDash fell more than 4%. Instacart declined to comment when contacted by Reuters, while Uber and DoorDash did not immediately respond to requests for comment.

Discussions are ongoing and there is no guarantee they will lead to a deal, the report said, adding that a typical takeover premium of 30% to 40% would value Instacart at roughly $16 billion to $17 billion, based on recent public technology deals.

In 2021, DoorDash had held talks to acquire Instacart, legally known as Maplebear, in a potential deal that would have valued the grocery-delivery company at between $40 billion and $50 billion, according to The Information. Instacart was privately valued at $39 billion at the time.

The talks fell apart partly because of concerns over whether a combination could secure antitrust approval under the Biden administration, the report said.