Market Hit: Leveraging CE Data to Understand the Differences between Instacart, Grocery Delivery Services, and Online Grocery Trends
Grocery delivery service Instacart (CART) recently reported interesting growth both around increasing customer transaction amount and overall revenue growth. They reported gross transaction value (GTV) growth of +5.8%, very close to CE Implied Reported Growth of +5.9%, while beating revenue consensus by over 4% (reported revenue growth +14.4% versus consensus of +10.3%).
Instacart Market Share vs. Grocery Delivery and Online Grocery
Looking at the data on a broader level, we can compare Instacart versus the grocery delivery and the online grocery (ex: delivery services) subindustries. CART management noted that Instacart represents 85% of the grocery market, matching what CE data shows for the last several quarters after dropping from its peak share of 87% in Q4 of 2022. 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.
This indicates that shoppers may have been wary of using grocery delivery services during an inflationary period, though CART’s management noted that it expects order growth as inflation begins to wane.
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 restaurants, retail, and other industry data year-round to track trends and insights like these, reach out to email@example.com.