Instacart’s Downloads Check-Out

Key Takeaways:

• After an outsized pandemic-induced surge in downloads in 2020 and 2021, Instacart’s download growth has since normalized. In 2Q23, Instacart’s global downloads fell 5% YoY, though this was significantly ahead of rivals Getir, Gopuff and Gorillas, whose downloads fell 62%, 45% and 86% YoY, respectively, per ST data

• This decline is likely due to changes in consumer behavior (physical retail, retailer provided fulfillment or a shift to restaurants)and the drop in discretionary income to spend on delivery fees particularly due to food inflation and increased competition

• While Instacart has continued to see positive growth in its organic downloads, there are signs of pressure as the number of paid downloads grew significantly faster at 40% YoY globally and in the US in 2Q23, perhaps due to rising competition from adjacent players, such as GrubHub and UberEats

  • Per Pathmatics by Sensor Tower data, Instacart US ad spend was the highest amongst its peers, with the bulk of the ad spend on the OTT (42%) and YouTube (20%) channels in 2Q23

• As Instacart’s download growth has moved inline with both gross transaction value and order growth, the recent declines in downloads (down 7% YoY and 5% YoY in 1Q23 and 2Q23, respectively) suggests a plateau or potential fall in both metrics, despite its expansion into Canada

• Downloads of Instacart’s mobile app for its shoppers, Instacart Shopper, grew 5% YoY globally in 2Q23, including a 21% YoY jump in Canada, as the company continues to expand internationally, similar to trends seen by the Uber Driver app (globally and in the US, up 9% YoY and 15% YoY, respectively, in 2Q23). As with Uber, ST data tracks both the demand and supply side of the Instacart ecosystem

  • Shoppers are an important part of Instacart’s ecosystem, so while download growth is positive, MAU growth has been flat to down in 1H23 vs. 1H22, which suggests a potential decline in demand, such that fewer shoppers are required to fulfill orders

For more information, request the full report from reports@sensortower.com.