Instacart posts strongest order growth since 2022, beats earnings estimates
Orders grew 17 per cent to 82.7 million in the April to June period, the company said in a shareholder letter on Thursday (Aug 7), beating the average analyst estimate of 80.8 million. That is a faster jump than in the beginning of the year and it's the biggest since the third quarter of 2022, according to Bloomberg-compiled data.
Customers continued to order more frequently because Instacart lowered the minimum basket size for free delivery earlier this year, chief financial officer Emily Reuter said. The company's partnership with Uber Eats for restaurant orders also saw takeout customers ordering on the platform more often.
Reuter added that a number of grocers such as Heritage Grocers Group, Lowe's Cos and Schnucks have lowered or removed price markups on its platform to match in-store prices, which has also been conducive to deepened user engagement.
Shares of Instacart, which publicly trades as Maplebear, rose 3.7 per cent in extended trading after the results were announced.
The results show the strong consumption power of US customers who rely on grocery and restaurant delivery services, even as demand for them has tapered off since the pandemic. Delivery peers Uber Technologies and DoorDash similarly reported robust results for their delivery services on Wednesday.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Instacart posted US$659 million in delivery transaction revenue for the second quarter, beating expectations. Total revenue, which includes sales from advertising and enterprise software, was US$914 million, also surpassing the average analyst estimate.
For the current quarter, Instacart sees gross transaction value in the range of US$9 billion to US$9.15 billion, exceeding the consensus estimate of US$8.96 billion. Adjusted earnings before interest, taxes, depreciation and amortisation in the third quarter will be US$260 million to US$270 million, also better than expected.
Reuter said that Instacart has seen more demand and has become faster at launching e-commerce software for retailers, a category with higher margins. The company launched 40 net new white-label shopping sites in the first half of the year, exceeding the 30 it created in 2024, she added.
'We are seeing more demand from retailers, but also our ability to launch and scale these retail partners with our enterprise solutions is getting faster and better,' Reuter said. Those offerings, combined with advertising, now bring in about 28 per cent of the company's revenue, the company said. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
3 hours ago
- Business Times
Evergrande liquidators target founder's assets in pivotal stage
[HONG KONG] More than a year after China Evergrande Group's liquidators began pursing the wealth of seven key defendants, the high-profile case is now entering a critical phase. So far Hui Ka Yan, the founder of Guangzhou-based Evergrande, has refused to disclose his assets, escalating tensions between him and creditors. That's adding to the challenges for liquidators who are preparing to hone in on the billionaire during a hearing scheduled on Sep 2. Liquidators are sifting through files and looking at some 3,000 entities related to Evergrande, just as the firm announced plans to delist in August. At the heart of the matter is US$6 billion worth of assets in the form of mostly dividends and remuneration that were paid to people, including Hui and other defendants. The property mogul was known for his lavish lifestyle and exemplified the country's real estate boom and bust. The court's decision could influence how other wealthy founders and executives behind troubled Chinese developers disclose their assets. The country's developers have defaulted on about US$150 billion of debt since the property crisis began, according to data compiled by Bloomberg. So far, much of the trial has focused on Hui's ex-wife Ding Yumei and former chief executive officer Xia Haijun. Both managed to delay, but not avoid, disclosure of their assets, despite hiring some of the most expensive lawyers in town. If liquidators manage to convince the high court to have Hui reveal his holdings, it could help them locate wealth that amounts to about an eighth of the firm's preliminary estimated US$45 billion debt load. It would also be a victory for creditors who have yet to pocket a penny nearly 19 months after Evergrande was wound up. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Hui's network Clarity on Evergrande's assets tied to Hui is crucial for liquidation, as filings show he controls nearly 60 per cent of the company. Hui has pocketed more than US$7 billion over the past decade thanks to the firm's generous payouts, according to data compiled by Bloomberg. Getting Hui to detail his wealth is just the first step in a long process of recuperating funds. The liquidators also have to contend with complexities onshore. It's been challenging for offshore investors to get their hands on assets that sit in the mainland, which has a separate jurisdiction from Hong Kong. Last year, a mainland court accepted a liquidation application filed against one of Evergrande's major onshore units, Guangzhou Kailong Real Estate. Kailong is fully owned by Evergrande and has a stake of around 60 per cent in Hengda Real Estate, the developer's main property operation onshore. Last March, Chinese regulators accused Hengda Real Estate of inflating more than 560 billion yuan (S$100 billion) of revenue by recognising sales in advance, an alleged fraud that dwarfs that of Luckin Coffee and Enron. Evergrande was fined 4.2 billion yuan, leaving even less money for offshore creditors. The liquidators said that they have been made aware of hundreds of credit actions, including the onshore bankruptcy proceedings of Guangzhou Kailong. Evergrande will be removed from the Hong Kong stock exchange on Aug 25, a year and a half after the shares were suspended and almost 16 years after it was listed. Information on Hui's latest status and whereabouts have been scarce. In late 2023, Bloomberg reported Hui was taken away by Chinese police, and was being monitored at a designated location under so-called residential surveillance, a type of police action that falls short of formal detention or arrest. Apart from a company filing confirming Hui being put under control, the Chinese authorities have remained tight-lipped about his status since then. That's why creditors are trying to unearth more information about people within Hui's personal network. They include Hui's two sons. One of them, Peter Xu, who once ran Evergrande's wealth management unit, was taken into custody after the developer allegedly failed to pay people who invested in its investment products, local media reported in 2023. The Guangdong police did not respond to a query for comment. Ex-wife properties Hui also has underage children and two grandchildren, who are being looked after by Hui's ex-wife in London, a March court filing shows. Ding holds real estate globally worth as much as US$350 million, including 33 luxury properties in Carnation Way in Nine Elms, south of the River Thames in London; a condominium on the 47th floor in One Wall Centre in the heart of downtown Vancouver, according to public records. An 'astonishing' amount of art collections were found in the 'humid' apartment in Guangzhou where Ding's mother resides, the liquidators' lawyer said in a previous court hearing. As for former CEO Xia, his whereabouts are unknown as he refused to provide his current address to the court. Xia has almost US$500 million in assets at stake from his previous salary, shares and investments in Evergrande, according to data compiled by Bloomberg. Xia managed to hold off disclosing his assets for about a year until around mid-year. Liquidators still have doubts about what he's shared so far, according to a court filing. He is still seeking relief from sanctions. Hui could deploy the same strategy used by his ex-wife and Xia, including asking for court adjournments, appealing and refusing to comply with disclosure rulings. 'The stakes couldn't be higher,' for Hui and his family, said Daniel Margulies, a partner at Simpson Thacher & Bartlett. BLOOMBERG
Business Times
8 hours ago
- Business Times
China's industrial output seen slowing on rain, capacity curbs
[BEIJING] The expansion in China's industrial output likely slowed sharply last month as downpours disrupted factory and mine operations while the government intensified efforts to rein in excess capacity. Official data due on Friday (Aug 15) will show industrial production increased 6 per cent in July from a year earlier, down from a 6.8 per cent gain in the previous month, according to the median forecast by 33 economists in a Bloomberg survey. Retail sales growth is expected to soften to 4.6 per cent, which would be the lowest in five months. Indicators reflecting the economy's third-quarter performance will likely draw keen attention from Chinese policymakers as they maintain a wait-and-see approach to additional stimulus. At a July meeting to set policies for the rest of the year, officials indicated a focus on implementing supportive measures already planned while promising to enhance aid when needed. High temperatures, heavy rain and flooding hit several regions in China last month, forcing factories and construction sites to suspend operations. Authorities are stepping up scrutiny over excessive production in sectors such as coal, after signalling at the start of July that they are addressing cutthroat competition among businesses in what's dubbed the anti-involution campaign. The world's second-largest economy grew 5.3 per cent in the first half of the year, well above Beijing's annual target of around 5 per cent. But challenges ahead are rife with the continuing real estate slump and deflationary pressure becoming entrenched. A contraction in property investment may have deepened in the January to July period from the first half, moderating fixed-asset investment growth, the survey shows. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The cooling momentum could have pressured the job market, with the urban unemployment rate expected to inch up to 5.1 per cent last month. Ongoing trade negotiations with the US also create uncertainty and make businesses cautious about expanding. American levies averaging about 55 per cent have significantly reduced China's exports to the world's largest consumer market. Any talks to lower that rate will likely be tough. Treasury Secretary Scott Bessent has indicated that Washington wants to see measures from China over an extended period to stem the flow of chemicals used to make fentanyl before lowering duties. He also ruled out including Chinese investments in the US as part of any trade pact. This makes reducing China's trade surplus with the US potentially more challenging compared to other regions such as Japan and the EU, which have committed billions of US dollars in their deals with America. Domestically, investors will watch closely for concrete measures the government and companies will take to trim excess and outdated capacity. Despite rhetoric to ease the rat race among enterprises, questions remain about the government-led campaign's effectiveness, given that many of the sectors plagued by the problem are privately owned and domestic demand has been stubbornly weak. Ending price wars in sectors such as solar power and electric vehicles will be essential to reflating the economy. It will also address concerns of trading partners over Chinese goods flooding their markets and squeezing local industries. BLOOMBERG
CNA
17 hours ago
- CNA
Amazon adds perishable foods to same-day delivery to take on Instacart, Walmart
NEW YORK :Subscribers to Prime service can now get strawberries, milk, meats and frozen dinners on the same day they order them as the company expands its fast-delivery option to perishable food items, Amazon announced on Wednesday. It is the latest move by Amazon to compete with grocery delivery services offered by Walmart+ and Instacart. Shoppers in more than 1,000 U.S. cities - including Phoenix; Raleigh, North Carolina; and Tampa, Florida - can get doorstep delivery within hours, while Amazon plans to expand the service to 2,300 cities by the end of the year. The company announced in June it is investing $4 billion to bring same-day and next-day delivery services to more than 4,000 rural U.S. communities by the end of the year. Previously, Prime subscribers' grocery orders were fulfilled through Amazon Fresh or Whole Foods. Now the additional service will complete orders through its same-day delivery logistics locations. Same-day delivery is free for Prime members, who pay $14.99 monthly or $149 annually, for orders over $25. Walmart's membership service, Walmart+, costs $98 a year and offers same-day delivery in under three hours - with some orders arriving in as little as 30 minutes. "Notably, Amazon has lowered the minimum order threshold to just $25 - a move that directly threatens Instacart by enabling customers to use Amazon for quick, one-off purchases, a core part of Instacart's value proposition," said Blake Droesch, analyst with eMarketer. Instacart's stock slumped 12 per cent in early trading on Wednesday, while Walmart and Kroger were down about 2 per cent and 5 per cent, respectively. Amazon shares were up about 1 per cent. As the largest grocery retailer in the United States, most of Walmart's deliveries tend to be dry groceries and perishables. In May, Walmart said it will soon be able to offer delivery within three hours to 95 per cent of the U.S. population, and that faster delivery speeds are helping drive its business. Between February and April, Walmart reported a 91 per cent increase in deliveries under three hours compared with the same period last year. Amazon shoppers "can order milk alongside electronics; oranges, apples, and potatoes with a mystery novel; and frozen pizza at the same time as tools for their next home improvement project - and check out with one cart and have everything delivered to their doorstep within hours," Doug Herrington, CEO of Worldwide Amazon Stores, said in a press release.
