DoorDash Nears a $17 Billion Deal for Instacart After Uber Walks Away
Grocery delivery's three-way flirtation just became a two-company conversation, and DoorDash is the one left holding the term sheet.
DoorDash is reportedly closing in on a deal worth roughly $17 billion to acquire Instacart, after Uber walked away from its own talks with the grocery delivery platform, according to a Wall Street Journal report. Both suitors had been circling Instacart since sale discussions first surfaced on October 23, with Instacart hiring a bank to weigh its options.
The math makes sense on paper. Instacart's market cap sits above $13 billion, and a standard acquisition premium pushes the number toward $17 billion fast. The company isn't selling out of desperation, either: second-quarter revenue was up 14% year over year to $1 billion, with $480 million in free cash flow. This reads like a strategic exit at a good price, not a fire sale.
It's also deja vu. DoorDash and Instacart reportedly explored a merger back in 2021 at a valuation north of $40 billion, before regulatory concerns killed it. Since then, DoorDash has swallowed Deliveroo and Wolt whole, while Uber picked up stakes in Delivery Hero and ezCater. A DoorDash-Instacart combination would hand one company a dominant share of US grocery delivery right as Amazon and Walmart keep pushing into the same aisle, which means antitrust lawyers are probably already clearing their calendars.
Source: Reuters
Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →
The Brand Briefing
Liked this? Get five more every morning.
The Brand Briefing: the stories moving brands, in your inbox at 7am your time. Free.
