The companies are in advanced talks on a potential acquisition that could value Instacart at $17 billion, though there’s no certainty a deal will be reached, according to the report.
Reached by PYMNTS, an Instacart spokesperson declined to comment on the report.
DoorDash did not immediately reply to PYMNTS’ request for comment.
Instacart had a market value of about $13 billion before its shares rose 8% after the WSJ report, while DoorDash has a market value of around $73 billion, the report said.
The potential acquisition of Instacart would add a major grocery delivery partner to DoorDash, which began by delivering food from restaurants and has since expanded to also serve retailers such as Macy’s, CVS and Target, per the report.
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The Information also reported Monday, citing unnamed sources, that DoorDash and Instacart could announce a $17 billion deal within days, assuming the deal “doesn’t fall apart at the last minute.”
The Information reported Friday (Oct. 23) that Instacart had been in talks with both DoorDash and Uber.
Monday’s WSJ report said Instacart’s talks with Uber have ended.
In separate news, Instacart announced in a Monday blog post that it plans to wind down its Caper Cart business, which develops AI carts, after evaluating that unit’s progress and the investment required to scale it and seeing that retail adoption had not scaled quickly enough.
Instacart said it will continue to develop in-store tools as part of a single operating system that powers both online and physical stores, but it will focus on intelligence and software.
“We believe our strengths in software, data and AI give us a greater opportunity to help retailers and brands understand what’s actually happening on store shelves and take action on that information,” Instacart said in the post.
PYMNTS reported Sunday (Oct. 25) that Instacart’s grocery-specific data and fulfillment infrastructure support the company’s AI initiatives.
Bloomberg reported Monday that an Instacart spokesperson said the decision to wind down Caper Carts preceded the earliest reports of a potential sale of the company, having been made over a period of months.
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