published : 2023-09-13

Instacart: The Rise of an Online Grocery Giant

Instacart partners with over 1,400 retailers, dominating 85% of the grocery market

Instacart headquarters in San Francisco, taken with Canon EOS 5D Mark IV

Instacart is set to go public after a decade of revolutionizing the grocery industry. With a mission to make grocery shopping effortless, this San Francisco-based company has filed paperwork with the SEC, expecting a valuation of $8.6 billion to $9.3 billion.

Founded in 2012, Instacart quickly expanded its services from the Bay Area to major cities across the United States, including New York City and Portland. Today, it competes against industry giants like Amazon and Walmart, but proudly claims to be the leading grocery technology partner to more than 1,400 retail banners, accounting for over 85% of the U.S. grocery market.

Fidji Simo, CEO of Instacart, taken with Nikon D850

CEO Fidji Simo, confident in their growth and success, highlights Instacart's ability to drive strong growth for retailers in an increasingly digital industry. Simo envisions the future of grocery shopping as an omnichannel experience that combines the best of online and in-store shopping.

With the impending IPO, Instacart seeks to further disrupt the grocery market. Their mobile app allows users to shop directly and have their groceries delivered by crowdsourced personal shoppers in less than an hour. To enhance the shopping experience, the company recently launched Instacart+, a subscription service offering benefits such as free delivery on orders over $35 and 5% credit back on eligible pickup orders.

Instacart app interface on a smartphone, taken with iPhone 12 Pro

In the fiscal year ending June 30, Instacart completed an impressive 263 million orders with a gross transaction value of $29.4 billion, showcasing their position as a dominant force in the industry. Simo recognizes the vast potential for online grocery sales, as only 12% of grocery sales are currently made online. The company anticipates this penetration to double or even exceed expectations in the coming years.

As Instacart prepares to go public, they will be listed on the Nasdaq Global Select Market under the symbol 'CART'. This move symbolizes their ambitions to continue shaping the future of grocery shopping and secure their position as a global leader in the industry.