Instacart, that go-to online grocery and delivery marketplace known for the carrot on the logo, which connects consumers with personal shoppers across the USA and Canada, yes, is up for sale.
And the interested buyers? DoorDash and Uber.
Here’s the scoop.
Potential sale
Instacart is eyeing a possible sale, and it is making sure this happens as it has reportedly already held preliminary talks with potential buyers, and the buyers are giants, DoorDash and Uber. That’s according to insiders in the business.
DoorDash connects its consumers with restaurants and stores through its app, where they place orders for delivery or pickup. Dashers accept requests, collect items, and deliver them. On the other hand, Uber connects passengers to drivers for transportation, while Uber Eats similarly links customers with restaurants and delivery couriers through apps.
Online business analyst Zak Stambor told Ridesharingforum.com with ridesharing media, "Instacart risks getting squeezed between retailers building their own digital channels and bigger platforms that can bundle grocery with other services, giving consumers more reasons to keep coming back. For Instacart, a deal could provide the resources and reach to compete more effectively than it could on its own.”
Is this true? The figures won’t lie.
Instacart’s market performance
Instacart may have closed around nine-percent higher last Friday, and had a market value of $12 billion as of Thursday’s close, but this situation itself is the trap, the perfect time for it to sell.
Because of this market cap, with the stock price up 25 percent for the year to date, the company can utilize this as the perfect opportunity to sell at a good price, before the grocery delivery market gets more competitive.
More information
This potential takeover by DoorDash or Uber – or both maybe? – could accelerate these companies’ online delivery ambitions through combining the established retailer and marketplace ties of Instacart with its own vast delivery network and customer base.
However, either of this deal could draw the scrutiny of anti-trust agencies, since this would bulk-up two of the biggest food-delivery platforms in the USA, and add-in a brand-new wave of consolidation. Similar to what happened with Uber bought Germany’s Delivery Hero.
Neither of the three companies commented on this possibility.
People are also politicizing this possible sale, as the Trump Government is showing “greater willingness” to approve deals even as “it could come at the cost of selling off parts of the business.” Way to go to the Trump administration!
So far, Bloomberg does not believe the sale would happen, and discussions may be on-going, but there’s no guarantee of a deal, so RSF will keep following this. For now, okay, tune in to this website for more food delivery news! ‘Til then!