Grocery delivery company Instacart files for long-awaited IPO

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Grocery delivery company Instacart is going public

The San Francisco-based company filed paperwork Friday with the U.S. Securities and Exchange Commission. The IPO is expected to happen in the next few weeks.

In a letter to investors, Instacart CEO Fidji Simo said online grocery has tremendous potential. The U.S. grocery market is a $1.1 trillion industry, but only 12% of sales are made online. She expects that to at least double over time. The IPO is a long-awaited step for Instacart, which was founded in 2012. The company filed privately for an IPO in May 2022 but delayed those plans last fall when the markets were roiling due to recession fears. There were just 71 IPOs in the U.S. last year, the lowest number since 2009, according to Renaissance Capital.

Instacart provides delivery from 85% of U.S. grocers, or more than 80,000 stores. The company says it has 7.7 million active customers who spend about $317 per month on Instacart.

 

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