Sources indicate that DoorDash's acquisition of Instacart could be announced as soon as Thursday morning, following speculation that began last week when Instacart was reported to be exploring a sale. The deal, which could value Instacart at approximately $17 billion, comes as DoorDash seeks to expand its presence beyond food delivery into the grocery sector.
Instacart's stock rose about 4% in after-hours trading on Wednesday, while DoorDash's shares experienced a slight decline of less than 1%. Instacart, which went public in 2023, has faced challenges in maintaining growth after benefiting from a surge in grocery delivery during the pandemic.
The company has also dealt with regulatory issues, including a $60 million settlement with the Federal Trade Commission over misleading advertising practices. As competition intensifies from major players like Amazon and Walmart, who are enhancing their online grocery services, the potential merger may attract antitrust scrutiny due to the overlap in their markets.
Analysts from Wedbush have noted that while third-party delivery platforms currently represent a small portion of total grocery consumption, regulatory approval could be complicated by a more detailed examination of the online market dynamics