Instacart’s Technology Business

Instacart flexes its software muscles as it looks to digitize 87% of the grocery industry, which is still offline.

December 8, 2024

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Instacart’s bread and butter is grocery delivery. It now wants to be the e-commerce technology provider of choice for grocers.

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One product that’s getting some traction is FoodStorm, Instacart’s order management system. In November, Sprouts Farmer Market rolled out FoodStorm across its 400+ locations. The company also developed Caper Carts, intelligent carts that help shoppers save money while they shop and skip the checkout line, and Carrot Tags, electronic shelf software.

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Instacart CEO Fidji Simo contends Wall Street is still undervaluing the company’s grocery bet despite being up 79% year-to-date. The company’s market value today sits at $11.27 billion, well down from its pre-IPO peak of $39 billion, but by shifting the business away from its reliance on low-margin grocery delivery to higher-margin software and online advertising, it may have more room to run in 2025.