Is Instacart Profitable 2024?

Who Founded Instacart?

Instacart is a grocery delivery and pick-up company that was founded by Apoorva Mehta, an ex-employee of Amazon, in 2012.

Instacart Over The Years

The company began as an app for which Mr. Mehta raised $2.7 billion in funding from Silicon Valley investors.

Instacart Over The Years

Instacart subsequently got into two more funding rounds of $2.3 million and $8.5 million, respectively, which helped the company grow its presence in 20 cities.

Pandemic Surged Instacart Sales

When the Pandemic happened, Instacart started seeing a surge in orders by 18% from 2021.

Instacart’s IPO Launch

Followed by the surge in sales, the company achieved a 935% year-over-year (YoY) growth rate in 2Q20, as a result of which it announced the launching of its IPO.

How Does Instacart Make Money?

Instacart is dependent on delivery fees, but now a large part of its earnings comes from ad revenue.

Instacart's Ad Revenue

Instacart made $740 million from ads which accounts for 30% of the overall revenue of $2.5 billion of Instacart last year.

Is Instacart Profitable?

In 2022, Instacart made annual profits of $428 million, reversing a decline of $71 million in 2021.

Is Instacart Profitable?

Instacart’s core, that is, its delivery service, is actually a very low margin business than advertising. So, Instacart’s profitability is heavily dependent on advertisement now.