By: Economic & Finance Report
Instacart is in no hurry to go public with an IPO (initial public offering); at least that is what their CEO says. Chief Executive Fijo Simo has stated that Instacart is not in a rush nor in a hurry to go public. Ms. Simo indicated that before going public, she wants Instacart investors to understand the long-term goals and vision for the company. She indicated that Instacart is building up its long-term values and goals, so it can sustain expanded growth.
Instacart valued now at $24 billion dollars (2022), can manage to focus on productivity of services and customer service expansion, as it scales it business model, to attract new customers. Instacart was one of the top customer service driven companies during the coronavirus pandemic, making efficient deliveries to customers who needed delivery services. The company was founded in 2012 but because of the fluctuations of the current state of the global financial markets; investors are cautious on the profitability of technology companies.
Instacart’s revenues is an important factor in its viability to compete with Door Dash and Uber. Their (Instacart’s) revenue does continue to incline but the nature for how long? Does point to a bigger picture. How to maintain their growth going forward? Instacart is diversifying their business model, by also targeting groceries stores and supermarkets to bolster their sales revenue and diversify their core businesses into other income streams. Advertising has also had an impact in the growth for Instacart as the company is also driven in obtaining pieces of the advertising marketplace. Ms. Simo also states that advertising will be a strong factor in Instacart’s growth and expansion into new terrain. For now, Instacart is content with their present focus and will scale where and when it is needed, for further growth. -SB
Image Source: Instacart