Musings on Markets • 1059 implied HN points • 19 Sep 23
- Instacart's upcoming IPO shows that its value has dropped significantly since the peak days of the pandemic. What was once thought to be worth over $50 billion is now expected to be valued around $9 to $10 billion.
- The grocery business is generally slow-growing and has very low margins. This affects how much Instacart can charge for its services and makes it tough for them to grow dramatically.
- Instacart now faces tough competition from grocery stores that have started their own online services. This competition is likely to limit Instacart's market share and growth in the future.