Market Hit: Leveraging CE Data to Understand the Differences Between Instacart (CART), Grocery Delivery Services, and Online Grocery Trends

Following Instacart’s GTV beat, management cited Instacart’s strong market share and order growth as the drivers of the beat. Despite higher than expected growth, CE data shows grocery delivery services such as CART still lag behind own channel online grocery growth for the last several quarters. However, recent quarterly data suggest an upward trend as inflation begins to wane. 

Instacart (CART) Gross Transaction Value Growth Above Consensus

Grocery delivery service Instacart (CART) recently reported gross transaction value (GTV) growth of +6.8%, very close to CE Implied Reported Growth of +6.6% and above consensus of +5.5%.  

Instacart vs. Grocery Delivery Services and Online Grocery

Digging deeper into the data, we can compare Instacart versus the grocery delivery and online grocery (ex delivery services) subindustries. CE data shows Instacart represents roughly 85% of the U.S. grocery delivery market, after dropping from its peak share of 87% in 4Q22. Shifting to Instacart performance for the last four quarters, we can see that along with the broader grocery delivery services subindustry, it has underperformed versus the online grocery (owned channels) subindustry. With that in mind, the most recent couple of quarters for CART have had an upward trend, which is in line with management’s comments about recent order growth driving the GTV beat.

*Market share as percentage of grocery delivery service subindustry

It is possible that as inflation wanes, order growth will continue to drive growth for CART and help it regain some of its lost market share. Clients can utilize CE cohort tools to monitor CART’s order and market share growth in real-time.

Consumer Edge is the leading provider of alternative data for consumer spending behavior, and the only provider of global revenue signals. If you’d like to benefit from using Transact US or other products for grocery delivery services, retail, and other industry data year-round to track trends and dynamics like these, reach out to insights@consumeredge.com.

About the Authors

Michael Gunther is the VP Head of Insights for the CEIC.
Explore more of his insights here and follow him on LinkedIn.

Harsh Masher is an Insights Analyst for the CEIC.
Explore more insights here.

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