Instacart's unsuccessful summer of dealmaking with Uber and DoorDash

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Inside Instacart's frenzied summer of unsuccessful dealmaking with Uber and DoorDash

The DoorDash situation soon evolved into a discussion about a merger—one that Mehta instigated but then abruptly pulled out of. The talks were restarted several weeks later, and involved Instacart's incoming CEO Fidji Simo, according to people familiar with the matter. Ultimately DoorDash passed on the deal, preferring instead to build its own grocery delivery service rather than spending upwards of $40 billion to acquire Instacart's. Uber passed, too.

Had Instacart managed to strike a deal with a larger gig company, it would have helped alleviate these problems. It was something that Mehta seemed set on accomplishing this past summer. The Information Uber passed on the deal, preferring instead to focus on its international grocery business and building up Cornershop, a Latin American grocery delivery startup that it recently bought. Uber executives also had reservations about the value of an integration with Instacart because it was unclear how the business would perform post-pandemic, a source familiar with the discussions said.

 

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