Instacart reportedly discussed a sale with DoorDash and Uber

Instacart reportedly held discussions about a possible sale to a competitor, according to reporting by The Information and Bloomberg relayed by TechCrunch. The Information reports that the grocery delivery platform hired an investment bank to examine its options and held talks with DoorDash. Bloomberg also reports discussions with Uber, which reportedly withdrew from the talks.

These moves do not establish that an acquisition is imminent. Bloomberg describes preliminary discussions that may not lead to any sale. An Instacart spokesperson declined to comment, according to TechCrunch. These reports therefore do not establish that any definitive agreement has been reached.

The prospect nevertheless prompted a stock market reaction: TechCrunch reports that Instacart shares rose more than 9.2% on Friday, while Uber and DoorDash shares fell. The outlet also reports a market capitalization of more than $13 billion and a 25% increase in the share price since the start of the year.

The interpretation requires caution. The market reaction reflects interest in the prospect of a deal; it confirms neither the identity of a buyer nor the terms of a potential combination. Confirmation from the companies and any potential transaction terms are still needed to assess the significance of these discussions.