Grocery Business Solid for Instacart in Q3
She added that retailers that launched at least one new service with Instacart in the past year have experienced a boost in sales, on average, nearly twice as fast so far this year as partners without launches. The shareholder letter also served as a report card on quarterly progress for retail partners, consumers and brands, sharing details such as the addition of flyers for more stores including Kroger and Schnucks, the rollout of new low- and no-cast delivery options, the expansion and improvement of its Caper Carts and fresh momentum with Cart Ads.
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In an earnings call, Simo said that Instacart’s unique proposition will help the company navigate any further choppiness in consumer confidence, including its focus on affordability. “We've been incredibly focused on this and we think that it's really incumbent on us to address the total addressable market, which really relies on having the most affordable product. And so, the strategy has been multipronged and affordability,” she said, noting that Instacart relies on integrations with grocers into the loyalty program. “This quarter, I gave the example of Kroger where you can now collect fuel points when you shop for Instacart. That's a good example of how we create savings through these like loyalty integrations. EBIT is another example.”
Opening up the lens wider, the CEO said that Instacart is working on a broader scale to deliver solutions with its partners and stakeholders. “We continue to be the clear category leader in both small basket fill-up orders, which represents 25% of the industry, and large weekly baskets, which represent 75% of the industry. We are truly building a habit so that over time, customers end up spending their full grocery budget with us. While other platforms are selling some grocery items, they are not building customers' grocery habits, which is critical to retaining customers with good economics,” Simo asserted.
Instacart partners with more than 1,500 national, regional, and local retail banners to facilitate online shopping, delivery and pickup services from more than 85,000 stores across North America on the Instacart Marketplace. The company also enables approximately 600,000 Instacart shoppers to earn by picking, packing and delivering orders on their own flexible schedule. Maplebear Inc. is the registered corporate name of Instacart.