What Instacart’s Failed Merger Signals
Instacart's failed merger discussions have caused a ripple effect in the industry that likely isn't finished in the grocery market.
The big question is - does the Board want to merge or not to go forward? Whither their IPO?
Likely all these discussions were conducted by the previous CEO, Apoorva Mehta. The latest shoe to drop is that Uber has signaled they will start to put more ads in its taxi app after recently adding these to the Uber eats app. Did they have discussions with Instacart also? How deep did the process go?
Were they considering Instacart as a helper not only to their grocery business but also their advertising aspirations? It's possible.
Long story short, I think Uber will need to make either significant investments here or a major acquisition to get better at this business, even though Uber has been a good technology company historically. Retail media is a hot space, and there are a few other startups they could consider.
I think Doordash is in a better strategic position here than Uber generally, as the market positioning is clearer.
