Instacart has filed a registration statement to propose an initial public offering on the stock market. The company says it will go public as a profitable business—unlike other gig-economy companies like DoorDash, reports Quartz.
Although Instacart’s revenue increased nearly 40 percent between 2021 and 2022, the grocery delivery app warned in the “risk factors” section of the registration that it may not sustain its profitability.
Quartz shared that the pandemic fueled much of the app’s growth.
As a result of thin margins in the food and grocery delivery industry and a drive to diversify its revenue, Instacart moved into advertising to sustain growth. The ad segment grew nearly 30 percent between 2021 and 2022 while the revenue from grocery orders increased by 18 percent over the same period.
The number of shares to be offered and the price range for the proposed IPO have not yet been determined. Full Story
Related: DoorDash to Pay $1.6M for Workers’ Rights Violations; Aldi Seen Bringing Efficiencies to Core Winn-Dixie Stores