Instacart posts sales beat, issues strong earnings outlook

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Instacart posted better-than-expected sales in the second quarter, signaling that the grocery-delivery business has a strong enough user base to support its longer-term bet on advertising.

The Instacart app is displayed on a mobile phone in an arranged photograph taken in Hastings on Hudson, NY January 4, 2021. Photographer: Tiffany Hagler-Geard/Bloomberg --

Instacart’s results come on the heels of big earnings beats by other delivery companies in recent days. Uber Technologies Inc. reported better-than-expected orders in the second quarter earlier on Tuesday. Last week, DoorDash Inc. — the largest food-delivery platform in the US — posted its biggest share gain in nine months after giving a stronger-than-expected profit forecast.

Instacart, which publicly trades as Maplebear Inc., announced earlier this year that it was cutting hundreds of jobs and restructuring leadership to focus on higher-margin businesses such as advertising and selling e-commerce technology to grocers. These businesses account for about a quarter of its total revenue.

 

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