Instacart also sells ad space on its site, including to Pepsi and Kellogg's, which want to promote products online.
Instacart, valued at $9.3 billion, said its grocery orders remained flat for the first six months of 2023 at 132.9 million compared to the year-ago period, Securities and Exchange Commission filings showed.
Gross transaction value rose 4% to $14.94 billion over the same period, while ad revenue grew 24% to $406 million from $327 million.
Gross profit grew faster than gross transaction value for products sold on Instacart, including merchandise, taxes and fees.
Some advertisers may not be as worried about Instacart's slowed order growth, said Nikhil Raj, retail media business lead at ad solutions firm Moloco.
Persons:
Eric Cohn, Cheney Orr, Instacart, Fidji Simo, Andrew Lipsman, there's, Lipsman, Gross, Instacart's, Nikhil Raj, Raj, Arriana McLymore, Richard Chang
Organizations:
Safeway, REUTERS, Pepsi, Securities, Exchange, Insider Intelligence, SEC, Thomson
Locations:
Tucson , Arizona, U.S, San Francisco, New York