A big change up could be coming to the food delivery sector.
DoorDash could soon be the new owner of Instacart. The food delivery service is said to be in advanced talks to purchase its rival for about $17 billion, the Wall Street Journal reports.
A deal could be in place as soon as this week, though things are still reportedly tentative enough to fall through. Instacart was previously in sale talks with Uber, but those have since fizzled out.
Instacart’s business focuses on home grocery shopping and delivery. While DoorDash has moved into that area, purchasing Instacart could give the restaurant delivery service a much stronger foothold in the market.
DoorDash previously bought European food delivery service Wolt in 2022.
Fast Company has reached out to DoorDash and Instacart for comment on the potential sale. We will update this post if we hear back.
How are DoorDash and Instacart stocks performing?
Following Monday’s report, shares of DoorDash (Nasdaq: DASH) closed 6.10% down, a drop of 25.63% year-to-date (YTD).
In contrast, Instacart’s stock price (Nasdaq: CART) was up 7.87% at the close of business, a 35.35% rise YTD.
DoorDash is worth about $73 billion and shared positive results in its most recent earnings report. The company’s quarter two revenue rose 36% year-over-year (YOY) to $3.28 billion. It beat Wall Street’s expectations of $3.16 billion, according to consensus estimates cited by CNBC.
Meanwhile, Instacart saw its second quarter revenue rise 14% YOY to $1.04 billion.