Maplebear Inc CART

Instacart Faces a Deep Competitive Set, Which Should Pressure Long-Term Growth

Maplebear, which operates as Instacart, has built a network that connects supply (grocers and couriers) with demand (consumers). The platform helps grocers grow, allows couriers to earn income, enables consumer packaged goods companies to advertise at the point of purchase, and provides consumers with on-demand grocery delivery. Instacart charges a service fee to both shoppers and grocers, either as a percentage of the total purchase value or a flat fee. Advertisers can purchase sponsored ads, display ads, and other advertising services through Instacart Ads. A significant portion of this advertising revenue flows to net income. The firm has generated strong free cash flow in recent years, but we believe the competitive intensity of the grocery delivery industry will pressure profits.