Another big growth area for Instacart is its membership service, Instacart+ (formerly Instacart Express). As of December 2022, only 8% of US adults reported paying for the service, far behind similar offerings from Amazon, Walmart, and DoorDash, according to Insider Intelligence and Bizrate Insights data.
Right now, Instacart+ benefits include free deliveries for orders over $35 and reduced service fees. If Instacart were to beef up its offering by introducing tiered levels or exclusive member benefits (e.g., promotions, priority deliveries, or support), it may be able to increase Instacart+ adoption.
The bottom line: Will 2023 be the year that Instacart goes public? Maybe.
But the bigger question is: Can Instacart hold onto its competitive advantage in 2023? Our bet is it will, especially if the company continues to shore up its business with retail media revenues and merchant offerings.
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