Instacart Considers a Potential Sale, Sparking Share Rally

(Bloomberg) -- Instacart has explored a potential sale of the grocery-delivery company, a process that has included discussions with Uber Technologies Inc., a person familiar with the matter said.

Though Instacart recently shopped itself to Uber, the ride-hailing giant walked away from the discussions, according to the person, who asked not to be identified because the talks were private. The two sides are no longer in discussions, the person said.

The Information previously reported that Instacart also held preliminary talks with DoorDash Inc. as part of a potential sale process. The story sent shares of Instacart up as much as 9.2% to $56.44 on Friday.

Representatives for Instacart, which trades as Maplebear Inc., didn't immediately respond to a request for comment. Uber and DoorDash also didn't immediately comment in response to requests.

Instacart has been working with an investment bank to evaluate its options, the Information said, citing unidentified people familiar with the matter. Discussions with other companies are early and ongoing and may not result in a deal, according to the report.

The grocery company is exploring a sale at a time of intensifying competition, with Uber and DoorDash encroaching further on its grocery business. That could potentially make a sale to a larger rival the company's best path to delivering returns to shareholders and securing its long-term future.

Uber's stock fell 3.4% in New York trading, while DoorDash declined 3.5%.