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05/16/2022

Instacart Files for IPO

Instacart is on its way toward an initial public offering (IPO).
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The delivery services provider filed a draft registration statement on Form S-1 with the Securities and Exchange Commission (SEC), which is expected to become effective after review by the agency. The company didn’t reveal details about its statement or intent to file an IPO, but the company could go public as soon as this year, Bloomberg reported

Instacart is considered a winner of COVID-19 shopping behaviors. The delivery services company has gained hundreds of retail location partners in the past few years, including many major grocery chains. Grocery delivery accelerated during the COVID-19 pandemic, and many retailers outsourced delivery services to Instacart or added the company as a partner to expand on its other omnichannel solutions such as curbside pickup. 

[Uber Eats, Albertsons Expand Delivery Partnership]

However, demand for grocery delivery has waned since the height of the pandemic. Instacart cut its valuation to $24 billion––down from $39 billion––in March, according to Bloomberg. In addition, Instacart’s IPO could come at a volatile time for the stock market.

Still, the spike in delivery demand has prompted a slew of startups to offer instant needs delivery for small grocery orders and everyday household items. These companies also offer ultrafast delivery in as little as 10 minutes in some cities, attracting millions of dollars from investors. 

[Gopuff Cuts Jobs Amid $1B Fundraising]

The IPO news comes soon after Instacart launched a retail media solution for retailers to leverage advertising, fulfillment and insights solutions.