DoorDash is said to have recently held talks to purchase Instacart

DoorDash (NYSE:DASH) is said to have held talks to purchase Instacart (ICART) over the past two months that may have valued the grocery delivery company at $40B to $50B. DoorDash gained 2% in after hours trading.
The talks felt apart in recent weeks at least partly over regulatory concerns that the Biden administration may not allow a combination, according to a The Information report, which cited people familiar.
Instacart (ICART) initiated the talks with DoorDash (DASH) looking for a merger, according to the report. Instacart (ICART) separately started talks with Uber, looking for a sales partnership, similar to Uber’s announced deal with Gopuff.
Last week the FT reported that DoorDash was in talks to invest in German grocery app Gorillas.
M&A is rare for DoorDash, but in 2019 it acquired the meal delivery company Caviar for $410M in cash and stock.
Earlier, FTC is said to investigate Uber’s partnership with Gopuff.
Also see last month, Grocery delivery startup Gopuff valued at $15B in latest funding round.