Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
Investors’ preferred Insta might not be the “gram.” On the back of a $265 million funding round, Instacart’s valuation doubled to $39 billion.
- It also doubled between January and October 2020.
Instacart’s soaring valuation suggests there’s room for other same-day delivery services to grow in the space, giving physical retailers more avenues to reach customers.
Delivering on expansion: Instacart had a packed 2020, landing 200+ retail partnerships. Now, it delivers for nearly 600 retailers across 45,000+ stores, and contracts with 500,000 gig shoppers.
Funding frenzy: With its new capital, Instacart will 1) increase its corporate workforce by 50% this year and 2) expand its marketplace catalog, advertising for its CPG partners, and Instacart Enterprise—the company’s software solution for retail partners.
Even bigger delivery energy
Shoppers flocked to online grocery at the start of the pandemic—and haven’t left. That’s led to meteoric growth in the direct to countertop economy.
- 43% of shoppers in September said they grocery shopped online in the previous six months, compared to 24% two years prior, according to a study from Mercatus and Incisiv.
- Retailers from Best Buy to Sephora then envisioned a same-day delivery window beyond foodstuffs—so Instacart and its rivals increased their non-grocery partnerships.
Crème de la crème: Instacart believes it’s created the best online grocery experience for shoppers today—claiming more than half the market share last year. For retail partners, Instacart's model drives steady growth without having to devote resources to an in-house, digital operation, an Instacart spokesperson told Retail Brew.
Zoom out: Instacart and its peers haven’t hit their peak yet. Online grocery is predicted to account for 21.5% of all US grocery sales by 2025, more than doubling its 2020 market share, per Mercatus and Incisiv.