Instacart is a private grocery delivery service that provides same-day delivery to over 85% of US households and 70% of Canadian households. It aims to create a world where everyone has access to the food they love through its online grocery ordering and delivery platform. Instacart evaluates the success of its products using key metrics like revenue growth, order volume growth, number of retail partners, and app usage/engagement. It plans to continue expanding its store partnerships and driving customer usage and satisfaction post-pandemic through new product features and a focus on safe shopping experiences.

1. Instacart Case Study
Team 7
Krishna Priya Balakrishna, Noor Fatima, Pink Rathod, Vivian Casillas

2. Product Discovery
1. What products are we building?
2. How do we know if our product(s) is good?
3. What else has been, is being, and will be built?

3. 1. What product are we building?
Mission: To create a world where
everyone has access to the food
they love and more time to enjoy it
together
Vision: Same-day grocery delivery
and pickup service bringing fresh
groceries and everyday essentials in
as fast as an hour

4. Who we are
● Instacart is a private one of the largest grocery delivery services
across the United States (accessible to more than 85%
households, 50 States ) and Canada (more than 70% of
households)
● It provides same-day delivery service and bring customer’s
groceries right to their doorstep
● Instacart leads it business with dedicated workforce for shopping
and delivery and brings revenue from markup groceries,
placement fee plus the delivery fee in a revenue share agreement
with its retail partners, and Instacart membership

5. Instacart Product: Consumers

6. Instacart Product: Consumers
WHY: Save time and money,
Convenient, Speed, Affordable
HOW: Online selection, Easy to
order, In-app chat, Delivery at the
Doorstep, Pick up at local nearby
stores, Order from website and
Apps (iOS, Android)
WHAT: Access to stores without a
membership (e.g. Costco), Access to
local stores, virtual shopping, Access
to Discount, and Deals

7. User Persona
Sophie James
College Student - 20 y/o
Aspiring Psychologist
Food and Cooking Lover
Goals/Pain points
● Wants to cook for herself in the college
apartment
● Loves grocery shopping, but can’t go out due
to Covid-19
● Needs to buy grocery every week
● Wants to stay safe and get the things she
needs without leaving her apartment
● Loves deals and coupons on food items!

8. Instacart Product Hypothesis
We believe that revenue will be increased by 20%
if college students like Sophie order groceries
every time with Instacart Express feature.

9. 2. How do we know our product is good?
FINANCIAL KEY METRICS - Current Indicators
● Revenue(YoY growth): 2.0 billion (Y 2017), 233% growth
● Valuation: $13.7 billion (Y 2020), Increased from $8 billion (Y 2018)
● Market Share: Y 2020
According to Second Measure, which
tracks credit card spending, Instacart’s
share of grocery pickup and delivery
sales rose to 57% in the third week of
May, up from 30% in February, making
it the biggest player in the space ahead of
Walmart, Shipt, Amazon, FreshDirect,
and Peapod

10. Key Metrics Continued
● Order volume (YoY growth): 500% with average customer basket size growing 35%
● Instacart Stores: 30K stores- Doubled in last 6 month as of June 2020
● App downloads: 218% growth in downloads (Feb-March 2020)
● Engagement: Active user counts(DAU), Transaction volume, Basket size, Frequency
of shops, On time delivery, Orders per shopper, Checkout conversion rate, Checkout
abandonment rate, Shrink
Forward looking statements
● Hired 300,00 full-service shoppers in Mar 2020, plans to hire additional 250,000 to
meet the demand
● Covid-19 Pivot: Instacart Ads - To help marketers reach shoppers when they are
ready to place an order for groceries and other household items.

11. Instacart’s Top Competitors
Instacart Shipt FreshDirect CornerShop Postmates
Founding
Date
2012 2015 2002 2015 2011
Business
Type
Private Subsidiary Private Subsidiary Subsidiary
Total
funding
raised
$2.2B 65.2M $398M $31.7M $903M
Availability 40 states Over 200 cities NY, NJ, CT, PA,
WA, DE
GTA, Gatineau,
Montreal and
Ottawa
50 states
Indirect Competitors: Uber Eats, Grubhub

12. 3. What else has been, is being, and
will be built?
Expanding relationships
between convenience
retailers and users
Driving usage and
satisfaction post-pandemic
Safe experiences delivered
to users and shoppers

13. Instacart 2020 Roadmap
Apr 2020
Features:
- Fast and
Flexible
- Order
Ahead
Mar 2020
- Increased
shoppers
community
from 200k to
350k
- Expanded 2.5k
new stores with
35 retail
partners
Features:
- Leave at the door
delivery
- Contactless
alcohol delivery
- Automatic
cancellation of out
of stock orders
- Customer default
tip
Feb 2020 May 2020 2020
- Technical innovations like
handling order volumes,
etc., to keep up the influx
of business
- ‘In-app safety hub ‘ offers
‘Get emergency
assistance’ for workers
- ‘Tip baiting’ feature
- Testing new feature to
accept batches
- Ensuring retailers know
what customer wants,
when and how they gets it.

14. References
● https://www.kylahelliott.com/instacart-case-study
● https://tech.instacart.com/building-an-essential-service-during-a-pandemic-3e2e51616a
45
● https://www.foodnavigator-usa.com/Article/2020/06/12/Instacart-raises-225m-in-fundi
ng-round-boosts-valuation-to-13.7bn#