Instacart’s announcement on Friday that it is preparing to go public made clear that the company has built a strong financial foundation in its legacy business as an e-commerce provider to retailers and is progressing quickly as it evolves into a technology company bent on helping grocers embrace digital technology online and in their brick-and-mortar operations.
Even as grocery e-commerce has recently shown sustained signs of slowing down after the pandemic sparked an unprecedented explosion in demand by online shoppers, Instacart said it believes it has plenty of room to grow its position as a digital service provider.
In the prospectus Instacart filed with the U.S. Securities and Exchange Commission, the company cited data from Incisiv that it said shows the online grocery market will post a compound annual growth rate of 10% to 18% between 2022 and 2025, compared with 0% to 4% for offline sales. Still, the company observed that given that the vast majority of grocery sales will not be digital anytime soon, “the role of the store will continue to be significant, and it will be critical to serve retailers with technology that enables omni-channel commerce.”
Source: Grocery Dive
Omni Talk is the retail blog for retailers, written by retailers. Chris Walton and Anne Mezzenga founded Omni Talk in 2017 and have quickly turned it into one of the fastest growing blogs in retail. 