“The Instacart Effect:” Giving Grocers and the Economy a Boost

At Instacart, we’re proud to be a key part of the communities we serve — helping parents, seniors, busy professionals and countless others get the food they need from the stores they love. With more than 350 retail partners across North America, we’re working with customers’ favorite retailers to deliver fresh groceries and everyday essentials from more than 25,000 stores — that’s more than half of all grocery stores in the U.S. — in as fast as an hour.

We’ve long known the value that our service brings to the customers, shoppers, retailers and brands that rely on us. Today, we’re proud to share brand-new data that underscores the value of our service in a whole new way, quantifying our broader impact on the U.S. economy and the grocery industry for the first time.

Dr. Robert Kulick of NERA Economic Consulting conducted an analysis of Instacart’s impact — deemed “The Instacart Effect” — in California, New York, Illinois, and Washington in 2019. The findings of the study are clear — Instacart drives job creation and revenue growth for the grocery industry.

Grocery Employment Increases When Instacart Enters a Market

Dr. Kulick’s study found that there’s a direct connection between Instacart’s entry into a market and employment. Instacart drives an average of 4 percent growth in retail grocery employment in every new market the company enters. These roles are direct employees of grocery stores and include jobs such as cashiers, stocking associates, and deli counter clerks, among others.

Instacart Creates Grocery Jobs

By creating additional customer demand for grocery stores, Instacart boosted retail grocery employment by over 23,000 jobs in those four states in the last year alone. These are net retail grocery jobs that would not have existed had Instacart not entered and expanded in the market.

Instacart Drives Significant Incremental Grocery Revenue

The findings also show that Instacart drove over $620 million in incremental revenue for grocers in those four states last year. For the U.S. retail grocery industry — which continues to face increased competition and makes up a large part of the retail economy overall — Instacart represents an important and significant growth opportunity for brick and mortar businesses.

“The Instacart Effect” is a National Phenomenon

Instacart has built an online grocery solution that offers quick and convenient delivery and pickup services for retailers, allowing these grocers to maintain existing customer relationships and attract new ones — all while protecting and creating jobs at brick and mortar stores. The results of Dr. Kulick’s study indicate that the magnitude of “The Instacart Effect” is statistically equivalent for each state. These findings suggest that “The Instacart Effect” is a national phenomenon. By helping grocery retailers grow, Instacart is strengthening the grocery industry and the economy across the U.S.

Let’s take a closer look at the study at the state level:

Instacart in California

We help deliver from California’s most beloved grocery stores, from Sprouts to Gelson’s to Berkeley Bowl. We know that California runs on fresh groceries (and maybe kombucha), and so we’re partnering with customers’ favorite grocers to expand access to their products. Today we have over 75 retail partners and deliver from nearly 3,500 stores across the state.

In California, Instacart created over 11,500 retail grocery jobs and $337 million in incremental revenue in 2019.

Instacart in New York

In New York, we’re proud to work with retailers from Buffalo to the Capitol Region to the Big Apple, delivering everything from your favorite Wegmans Honey Mustard to wine and cheese from Eataly to local produce from Tops. Today, we have over 85 retail partners and deliver from nearly 1,500 stores across the state.

In New York, Instacart created over 6,600 retail grocery jobs and $154 million in incremental revenue in 2019.

Instacart in Illinois

Instacart brings customers fresh groceries in Peoria, Springfield, Chicago and across the state. From ALDI and Kroger to Fairplay Foods and Friar Tuck, Instacart partners with retailers across Illinois to deliver tonight’s dinner when customers are tired of deep dish. Today we have nearly 40 retail partners and deliver from nearly 1,000 stores across the state.

In Illinois, Instacart created over 3,400 retail grocery jobs and $75 million in incremental revenue in 2019.

Instacart in Washington

In Washington, Instacart delivers from beloved national grocers like Albertsons and local favorites like PCC Community Markets, Metropolitan Market, New Seasons Market and more, bringing customers the essentials they need in as fast as an hour. Today we have over 20 retail partners and deliver from more than 500 stores across the state.

In Washington, Instacart created over 1,900 grocery jobs and $56 million in incremental revenue in 2019.

At Instacart, we want to create a world where everyone has access to the food they love and more time to enjoy it together. We’re proud of the contributions we’ve made to the grocery industry and look forward to continuing to partner with the beloved retailers across North America to drive job creation and revenue growth.

Instacart

Author

Instacart is the leading grocery technology company in North America, partnering with more than 1,500 national, regional, and local retail banners to deliver from more than 85,000 stores across more than 14,000 cities in North America. To read more Instacart posts, you can browse the company blog or search by keyword using the search bar at the top of the page.