Instacart in talks with DoorDash and Uber for sale, The Information reports

Oct 23 (Reuters) - Instacart is exploring ‌a possible sale ​and has ​held preliminary discussions with potential buyers including Uber and DoorDash, The Information reported on Friday, citing people familiar with the matter.

Shares of Instacart closed about ‌9% higher on Friday. The company had a market value of about $12 ⁠billion as of Thursday's close.

A potential takeover by Uber or DoorDash could bolster the buyer's online grocery delivery ‌ambitions by combining Instacart's established marketplace ‌and retailer ties with its own vast delivery network and customer base.

But either deal could draw antitrust scrutiny, as it would bulk up two of the biggest food-delivery ​platforms in the US and add to a wave of consolidation. In July, Uber struck a nearly $15 billion deal to buy Germany's Delivery Hero.

Shares of Uber closed down ⁠around 3% while DoorDash were 4% lower. Instacart declined to comment when contacted by Reuters, while Uber and DoorDash did ​not immediately respond.

Discussions are ongoing with no guarantee of a deal, the report said, adding that a typical takeover premium of 30% to 40% ​would value Instacart at roughly $16 billion to $17 billion, ‌based on recent public technology deals.

Last year, Instacart lowered its minimum order for free delivery for Instacart+ members to $10, as rivals DoorDash and Uber ⁠Eats expand grocery and convenience delivery. Amazon is also expanding its quick delivery service, Amazon Now, which delivers groceries and essentials in 30 minutes or less.

"Instacart risks getting squeezed between retailers building their ⁠own digital channels and larger platforms that can bundle grocery with other services, giving consumers more reasons ​to keep coming back," Emarketer analyst Zak Stambor said.

"For Instacart, a deal could provide the resources and reach to compete more effectively than it could on its own," he said.

In 2021, DoorDash had held ‌talks to acquire Instacart, legally known as Maplebear, in a potential deal that would have valued it between $40 billion and $50 billion, The Information ‌had reported. The concerns about Biden administration's antitrust approval derailed the talks.

Stambor said the latest deal ⁠is plausible as the Trump administration has ‌shown "greater willingness" to approve ​deals even as "it could come at the cost of selling off parts of the business."

(Reporting by Sanskriti Shekhar and Jaspreet Singh in Bengaluru; Editing by ‌Diti Pujara)

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