From Startup Fortune · · 1m 10s
Instacart Tests Sale to Uber or DoorDash at Lower Price
Instacart explores sale to Uber or DoorDash at fraction of 2021 valuation.
In brief
Instacart explores sale to Uber or DoorDash at fraction of 2021 valuation. Instacart is considering selling to Uber or DoorDash for about $12 billion, down from $39 billion in 2021. Originally reported by Startup Fortune.
Instacart Sale Talks
Instacart is exploring a sale after preliminary talks with Uber and DoorDash, five years after DoorDash discussed buying it at a far higher valuation.
Market Value Drop
Instacart's market value is now $12 billion, down from $39 billion in 2021, a fraction of the previous valuation.
Takeover Premium
A typical tech takeover premium runs 30% to 40%, which would put a deal in the $16 billion to $17 billion range.
2021 Talks Fall Apart
DoorDash was in talks to buy Instacart at $40 billion to $50 billion in 2021, but the deals fell apart partly over antitrust worries.
Market Reaction
Uber closed down nearly 3% and DoorDash fell more than 4% after news of Instacart's potential sale.
What This Means
Grocery delivery is turning into a feature for logistics platforms, not a standalone business that supports its own public company.
In short
Instacart is considering selling to Uber or DoorDash for about $12 billion, down from $39 billion in 2021.
