Instacart’s Valuation Falls By 40 Pct
Instacart cut its valuation on Thursday by nearly 40% to $24 billion as competition in the U.S. grocery delivery space continues to heat up.
Just a year ago, the company was valued at $39 billion after it doubled its valuation in less than six months as demand for doorstep delivery of grocery products boomed due to the coronavirus pandemic.
The decline has come as retail heavyweights such as Walmart and other grocery delivery companies such as Uber Eats and DoorDash have ramped up efforts to capture a larger share of the market. An overall decline in valuations of technology stocks in recent months has not helped either.
DoorDash, which announced plans to acquire European rival Wolt for $8 billion in November 2021, has seen its valuation declined by 23%.
Meanwhile, Uber has seen its valuation tank by 17%, and smaller players such as Buyk and Fridge No More have been forced to shutter their businesses.
“We are not immune to the market turbulence that has impacted leading technology companies — both public and private,” an Instacart spokesperson said.
Even with a lower valuation, Instacart is planning to offer new equity awards, which it hopes will help attract and retain talent in a tight labor market in the U.S.
The company is reportedly planning to go public through a direct listing to seek a higher valuation.
Originally published at https://retailbum.com on March 25, 2022.
