DoorDash reportedly moves closer to acquiring Instacart as investors anticipate a major consolidation in the delivery industry.
Instacart (CART) shares surged 8% Monday following reports that DoorDash (DASH) is negotiating a potential $17 billion acquisition of the online grocery delivery platform.
According to The Wall Street Journal, citing sources familiar with the discussions, an agreement could be reached as early as this week, although negotiations remain ongoing and no deal has been finalized.
The potential acquisition would represent a significant consolidation within the delivery industry, combining DoorDash’s restaurant delivery network with Instacart’s established grocery delivery operations.
DoorDash shares declined 6% following the report, while Uber (UBER), which reportedly held earlier discussions with Instacart, slipped nearly 1%.
Instacart currently carries a market capitalization of approximately $14.45 billion, compared with DoorDash’s $72.98 billion valuation.
Citi analyst Ronald Josey maintained a Buy rating on Instacart with a $58 price target, while the reported acquisition valuation suggests a potential transaction price near $65 per share.
The companies previously explored a merger in 2021, but negotiations collapsed amid regulatory concerns.
Retail investor sentiment remained extremely bullish following the latest reports, reflecting growing expectations that a potential agreement could reshape competition across the rapidly evolving grocery and food delivery markets.
