. It also provides in-store technology, like smart carts and electronic shelf tags, and sells online ads to food companies and retailers.In a letter to investors earlier this month, Instacart CEO Fidji Simo said grocery delivery has tremendous potential. The U.S. grocery market is a $1.1. trillion industry, but only 12% of sales are made online. She said she expects that to at least double over time.
As of August, Instacart controlled 70% of the third-party U.S. grocery delivery market, according to YipitData, a market research firm. DoorDash controls around 10%. This week, DoorDash added more U.S. grocers to its offerings, including Cub, Lowe’s Markets and Eataly. Some grocers have unwound partnerships with Instacart or built up their own delivery capability. H-E-B, a Texas chain, encourages customers to shop on its own site, not Instacart’s, if they want lower-cost delivery, Bishop said. Other big grocers, like Walmart and Target, also do their own deliveries.coming back because it relies on them to sell ads.
Still, Instacart’s revenue was up 31% to $1.47 million in the first six months of this year, largely due to increases in the advertising fees it collects from retailers and food companies. The company reported net income of $242 million in the first six months of this year.Recent food recalls spurred by foreign objects like rocks, insects and plastic - which isn't uncommon
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