Instacart is a grocery delivery company that connects customers with gig economy workers who pick out their orders at grocery stores and deliver them. The company was founded in 2012 and has a valuation of $39 billion.
Instacart CEO Fidji Simo said in the company's S-1 filing that the company is at the center of a "massive digital transformation." She noted that only 12% of grocery sales are currently made online, and she believes that this number could double or more over time.
Advertising sales will play a major role in Instacart's coming growth, according to Simo. The company reported revenue of $1.48 billion in the first half of 2023. Advertising accounted for 28% of the revenue.
Overall, Instacart's IPO was a positive step for the company and for the IPO market as a whole. However, it remains to be seen whether the company can sustain its growth and profitability in the long term.