The news: While Instacart’s revenues rose over 30% year-over-year (YoY) to about $1.4 billion in the first half of 2023, its gross transaction volume grew just 5% YoY, per The Information.
How Instacart’s results stack up: Instacart’s slowdown in its core delivery business is a marked contrast with the 27% and 10% growth reported by DoorDash’s and Uber’s delivery services over the same period. While both those companies primarily provide restaurant delivery, they are rapidly growing their grocery businesses. For example, our forecast expects DoorDash to make $5.26 billion in online grocery sales this year, which is over nine times the $580 million it generated in 2020.
The big takeaway: Instacart has two key strengths: its exclusive agreements with grocers and its high-margin advertising business.
First Published on Aug 21, 2023
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