The year 2020 is said to be for groceries, and Instacart leads the table in online grocery orders. According to the investment bank Cowen, Instacart beats the selling of Target and Kroger and is gaining its popularity in Online Grocery Orders. Instacart was started in 2012 and is now just behind the big giants Walmart and Amazon.
The investors are also showing interest, and this brings more popularity to the San Francisco-based company. According to Instacart, they gain $200 million after costing $17 billion. That’s an increase from 2015 having a valuation of $2 Billion.
As the states are lifting lockdown therefore according to the Cowen August Report 32% of people shopped groceries online which is higher than the previous year 18%.
Not everyone is a tech person so, is in the case of traditional grocers and retailers. If the grocers and retailers want to make their existence that needs to convert their business online and home delivery is the best option in this pandemic. Instacart is a platform that is providing the opportunity to these grocers and retailers to expand their business and create a partnership with them. Instacart is providing deliveries from the 500 retailers just like Walmart, 7-Eleven and Sephora delivers in the US and Canada from 40,000 different locations. The workers at Instacart observed the rising demand for online delivery who were lasting protesting regarding their pays and benefits.
If we compare the grocery business with other types of businesses, then it is seen that it not much profitable business still big platforms like Amazon, and Walmart thinks that it a way of gaining an audience. Most of the buyers think that they can purchase items having a higher margin.
Lastly, a big question for Instacart is that either the newly urban customers will keep in connection with them and will prefer to buy from them as online shopping or they will switch to the old system when things get normal.