Instacart Inc. is acquiring Eversight Inc., a platform that helps retailers and packaged-goods brands determine pricing and set promotions, as it seeks to expand its technology offerings to grocers.
(Bloomberg) — Instacart Inc. is acquiring Eversight Inc., a platform that helps retailers and packaged-goods brands determine pricing and set promotions, as it seeks to expand its technology offerings to grocers.
Terms of the deal weren’t disclosed in a statement on Thursday.
“When it comes to grocery shopping, we know that every dollar matters. With higher inflation and the average cost of groceries up, we’re taking even more steps to make food and daily essentials more affordable,” Chief Executive Officer Fidji Simo said in the statement.
Combining Eversight’s technology, which automates processes that have traditionally been manual and time-consuming, with Instacart will help offer more value for brand and retail partners and help maximize savings for customers, Instacart said. Palo Alto, California-based Eversight was valued at $54 million in 2019 and had raised a total of $27.7 million in funding, according to PitchBook.
Instacart, a pioneer in grocery delivery, has been looking for ways to tap revenue streams outside of its consumer-facing marketplace app, which boomed during Covid but has since seen the pace of sales moderate.
In March, Simo, a former Facebook veteran, said she sees advertising eventually accounting for the majority of Instacart’s revenue with the grocery delivery business breaking even. Simo said the company’s advertising business grew “close to triple digits” last year and will be “very important” to Instacart’s future financial model.
Simo has honed Instacart’s focus on being a technology supplier for supermarkets since taking the helm last year and has said its enterprise business, Instacart Platform, will play a key role in the company’s next chapter.
The San Francisco-based company is preparing for an initial public offering, which could happen as soon as this year Bloomberg has reported, despite a slow year for IPOs and volatile public markets. Earlier this year, Instacart slashed its valuation by almost 40% to about $24 billion.
Instacart, which relies on an army of more than 600,000 gig workers for its core-grocery delivery app, has sought ways to make its operations more efficient. The company has also been expanding into the retail sector. This month, Instacart launched a new service that allows customers to order same-day delivery for large items, including furniture and electronics from certain stores.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
