DoorDash in talks to buy Instacart in roughly $17 billion deal, source says

What happened

DoorDash is in advanced talks to buy Instacart in a deal that could value Instacart at about $17 billion, a source told Reuters. A deal may be finalized as soon as Wednesday, but there are no guarantees.

Confirmed

Global impact / market context

Buying Instacart would give DoorDash its grocery marketplace and retailer ties, which it could combine with its own delivery network and customers. That could let DoorDash sell more groceries through existing drivers, spreading delivery costs over more orders.

Analyst inference

Instacart had a market value of about $13 billion on Friday, so the roughly $17 billion price is a premium that means a higher offer than the market value. Its talks with Uber are no longer active, leaving DoorDash as the reported buyer.

Analyst inference

What to watch

1. A deal may be finalized as soon as Wednesday, although there are no guarantees it will come together, the source said, so the talks could still end without a purchase. Confirmed
2. Watch whether DoorDash and Instacart reach a final agreement near the reported $17 billion value, which is the price that would be paid for Instacart. Proposed
3. Watch DoorDash's reported share decline, which may reflect investor concern about the cost of the deal, and whether capital spending on the purchase affects its cash available. Analyst inference

Evidence

• Original source link unavailable