Adjacent Market Expansion

Instacart is a marketplace connecting customers with same-day grocery delivery, which has expanded beyond groceries into adjacent retail categories. The company raised significant capital to achieve rapid geographic expansion and market dominance.

Key Points:

• Core Market Opportunity:

  • $700 billion grocery market in US
  • Expanding into adjacent markets like pet stores and kitchen supplies
  • Growing customer demand for 1-hour delivery services

• Growth Strategy:

  • Rapid geographic expansion beyond San Francisco
  • Focus on proving model works in:
    • Major cities (top 15-20 markets)
    • Suburban areas
  • Goal to achieve largest coverage/density in America

• Marketplace Development:

  • Build supply and demand simultaneously
  • Create density in each geography
  • Aim to be biggest marketplace for network effects
  • Partner with retailers to bring them online

• Capital Strategy:

  • Raised over $1 billion to:
    • Support rapid expansion
    • Build new products
    • Create war chest for market challenges
    • Enable faster market coverage

• Competitive Position:

  • Largest grocery delivery marketplace in America
  • Thriving despite Amazon/Whole Foods acquisition
  • Strengthened retail partnerships post-Amazon acquisition
  • Growing customer adoption year over year