The news: Instacart unveiled Instacart Platform, a collection of omnichannel solutions that grocers can implement on their own properties, per a company release.
The platform includes:
- Ecommerce services including custom-built storefronts and product discovery tools
- Access to Carrot Warehouses, microfulfillment centers that enable retailers to offer 15-minute delivery
- Tools to enhance the in-store experience, including the ability to incorporate scanless shopping
- Carrot Insights, a data analytics tool that allows retailers to optimize operations by monitoring key metrics such as item popularity, delivery times, and gross merchandise value
- Carrot Ads, which allows retailers to leverage Instacart’s advertising capabilities to show ads on their own sites and apps
Competitors catch up: While Instacart usage soared during the pandemic, the company no longer controls the third-party delivery market like it used to: We forecast its share of the market will drop to 69.4% this year.
- One of the biggest threats to Instacart’s delivery model is the prospect of retailers building out their own fulfillment network, which Walmart, Costco, and others are already doing.
- Walmart has also encroached on Instacart’s turf with GoLocal, a service that lets retailers leverage Walmart’s own delivery capabilities.
- Rapid delivery startups like Gopuff, as well as established delivery platforms such as DoorDash, are also chipping away at Instacart’s dominance.