2023-08-25 21:46:00
App by Instacart
The shopping delivery service goes public.
(Photo: AP)
New York Business with tech IPOs in the USA is picking up again: Shortly after the chip developer Arm, the shopping delivery service Instacart announced a share placement. The beverage and snack giant Pepsico is also making a big purchase from Instacart with $175 million (a good €160 million). Meanwhile, on Friday there was initially no information on the targeted valuation of the company and the volume of the placement.
You can use Instacart to have your retail purchases delivered to you. In the last quarter, the company, which was founded in 2012, increased its sales by a good 15 percent year-on-year to 716 million dollars (662.5 million euros). According to the prospectus, profits jumped from $8 million to $114 million within a year.
Instacart wants to bridge the gap between in-store shopping and online shopping, company boss Fidji Simo, a former senior Facebook executive, stressed in the prospectus.
Aldi also uses Instacart in the USA. Instead of laboriously building up an online trade itself, the German discounter has outsourced e-commerce to Instacart. This means that when customers order online from Aldi, Instacart buyers go to the store and buy the products there. The customer then pays fees to Instacart and the buyers in addition to the Aldi prices.
“Using Instacart makes sense for Aldi because it’s very difficult to make money from grocery e-commerce in the US,” says consultant David Marcotte of Kantar Consulting.
The IPO had been expected for some time. According to media reports, Instacart cut its overall valuation from $39 billion to $24 billion in a round of financing in early 2022. It was accordingly halved later in the year.
Instacart’s earnings aren’t enormous, comments Kyle Stanford from the analysis company Pitchbook. “But the company is growing fast and turning a profit.”
This is in contrast to many unicorns, i.e. start-ups valued at billions, that have gone public in recent years and is in line with what investors expected in the current market situation. “Instacart has established itself as an interesting IPO.”
With agency material from the dpa.
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