Instacart expands business features to retailer e-commerce sites

SAN FRANCISCO - Instacart (NASDAQ:CART), the grocery technology company with a market capitalization of $10.4 billion and impressive gross profit margins of nearly 75%, announced Wednesday that it has expanded its full suite of business features to retailers using its white-label e-commerce solutions, Storefront and Storefront Pro. According to InvestingPro analysis, the company currently trades below its Fair Value, suggesting potential upside for investors.

Woodman’s Markets is among the retailers already implementing these capabilities, which allow businesses such as restaurants, offices, healthcare facilities, and schools to place orders directly through retailer websites and apps.

The expanded features include bulk ordering options, multi-user management with customizable permissions, account oversight dashboards, shopping guides for frequently ordered items, spending controls, and Instacart+ sharing benefits that provide 2% cash back on orders over $250.

"Expanding business features to retailers’ customers on their sites is part of our ongoing investment in enhancing retailer sites with tools that deliver added value and unlock new revenue from business customers," said Ryan Hamburger, Vice President of Retail Partnerships at Instacart, in a press release statement.

According to the company, more than one million business customers have ordered from Instacart in the past year. The new capabilities aim to help retailers capture more of this growing demand segment. This expansion aligns with the company’s strong revenue growth of 10.47% over the last twelve months. InvestingPro data reveals 8+ additional key insights about Instacart’s growth potential and financial health, available in the comprehensive Pro Research Report.

URM Cash & Carry, a business resource for grocery products, plans to launch on the Instacart App to reach businesses utilizing these features.

Instacart Business, which launched in 2023, complements the company’s Storefront solutions by providing real-time access to fresh foods, ingredients, and supplies to help companies reduce stockouts and streamline procurement operations.

The grocery technology company currently partners with more than 1,800 retail banners across North America, facilitating online shopping from nearly 100,000 stores through the Instacart Marketplace. With a strong current ratio of 3.32 and an overall financial health score rated as "GREAT" by InvestingPro, Instacart demonstrates robust operational capabilities to support its expanding network.

In other recent news, Instacart has been the focus of several key developments. Piper Sandler downgraded Instacart from Overweight to Neutral, lowering its price target to $41.00 due to increasing competitive pressures in the grocery delivery sector. Meanwhile, Cantor Fitzgerald maintained an Overweight rating with a $63.00 price target, citing strategic value and potential acquisition interest, particularly from companies like Uber. Guggenheim also initiated coverage with a Neutral rating, pointing to slower anticipated growth and competitive challenges.

Instacart has launched an end-to-end retail media solution on TikTok, allowing select consumer packaged goods advertisers to leverage Instacart’s retail data for targeted advertising. This integration positions Instacart as the first retail media network to offer comprehensive capabilities on TikTok. Additionally, a new partnership with United Airlines offers MileagePlus members delivery perks, including waived delivery fees on grocery orders tied to their flight schedules. These initiatives reflect Instacart’s efforts to expand its service offerings and partnerships amid a competitive landscape.

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