Instacart talks with Uber and DoorDash over possible multibillion-dollar sale

Instacart is in preliminary discussions with Uber and DoorDash about a sale that might be valued at $16 billion to $17 billion, reflecting a 30%-40% premium over its current worth. An investment bank is assisting the company, which was once valued at $39 billion during a 2021 funding round but fell to about $13 billion today. Both Uber and DoorDash are expanding their grocery-delivery arms and have pursued large acquisitions in the food-delivery sector, raising the likelihood of antitrust scrutiny for any takeover.

Earlier DoorDash talks in 2021 collapsed partly due to concerns about securing approval under the Biden administration. Instacart’s recent moves include a partnership with Uber Eats for restaurant delivery and the use of its Carrot Ads platform on Uber’s app, yet its advertising revenue still lags behind rivals. The company generated $480 million in free cash flow in Q2 and plans to use most of it for share repurchases, while no definitive buyer has emerged yet.