US grocery delivery company Instacart is exploring a possible sale after preliminary talks with DoorDash and Uber, according to reporting by The Information and Bloomberg covered again on October 24. The discussions remain uncertain, and no sale agreement has been announced.
Reuters, citing The Information, reported that Instacart was assessing potential buyers. Bloomberg separately cited a person familiar with the matter as saying Uber had walked away and the two companies were no longer in talks. The reports concern an exploratory process, not a confirmed takeover.
Instacart shares closed at $56.44 on Friday, October 23, up about 9.2%, according to Bloomberg. Reuters said the three companies did not immediately respond to its requests for comment. That market reaction followed the initial reporting and does not establish that a buyer will make an offer.
The company's published results show a growing business behind the sale speculation. Second-quarter revenue rose 14% from a year earlier to $1.043 billion, while orders increased 9% to 90.3 million. Net income was $111 million and free cash flow reached $480 million, according to its August financial release filed with the SEC.
Instacart's operations extend beyond grocery delivery. The company says it works with more than 2,200 retail banners representing nearly 100,000 stores and provides ecommerce, order fulfillment, in-store technology and advertising services. Its second-quarter advertising and other revenue increased 16% to $297 million, showing the scale of that part of the business.
The next scheduled financial update is November 5, when Instacart says it will release third-quarter results after the market closes and hold a management call. Those results will provide a new account of operating performance. Any sale remains dependent on further negotiations; the reporting has not established a transaction price or a completed agreement.
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