After navigating a series of highs and lows and successfully weathering the volatile markets of the past year, Instacart on Friday took a major step forward. The grocery delivery behemoth officially filed to go public, setting its sights on a Nasdaq listing under the ticker "CART."
Here's a closer look at the move and what it entails.
Performance By The Numbers: In its filing, Instacart reported a net income of $114 million on revenues of $716 million in the most recent quarter, which represents 15% growth from the same period last year. And, the company has been operating in the green for five consecutive quarters.
Committed to staying competitive in the tech space, Instacart said it has intentions to further embed artificial intelligence and machine learning into its platform, as the company is betting on AI solutions to spur future growth.
As a part of the effort, in May, Instacart introduced "Ask Instacart," a generative AI tool designed to address users' grocery-related queries, CNBC reported.
CEO Fidji Simo, in the prospectus, outlined the company's vision for the future of grocery shopping. Simo imagines a seamless blend of online and in-store experiences, harnessing the best aspects of both worlds.
In her words, "Most of us are going to do both."
Instacart operates in more than 5,500 cities, partnering with over 40,000 grocers and stores. The Covid-19 pandemic supercharged its growth, with many consumers opting for delivery over in-store shopping.
Tracing its roots back to 2012, when it was first incorporated as Maplebear Inc., Instacart was designed to revolutionize grocery shopping. Today, the company partners with over 1,400 national, regional, and local retail banners, capturing more than 85% of the U.S. grocery market.
The company boasted a gross transaction value (GTV) of roughly $29 billion in 2022. The company's GTV saw an 80% compound annual growth rate between 2018 and 2022.
Despite grocery shopping being a $1.1 trillion industry in the U.S. last year, its prospectus noted that only 12% of sales took place online. With the trend set to intensify, Instacart is investing heavily in technologies tailored for online grocery, aiming to offer comprehensive solutions to retailers.
