This collaboration aims to enhance Instacart’s competitive edge in the grocery e-commerce space by strengthening its connections with both retailers and shoppers.
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GLOThis collaboration aims to enhance Instacart’s competitive edge in the grocery e-commerce space by strengthening its connections with both retailers and shoppers.
The partnership highlights the growing need for retailers and suppliers to provide savings opportunities for online shoppers, especially as many are still feeling the effects of the economic inflation that followed the COVID-19 pandemic. Through this deal, the roughly 2,400 consumer packaged goods (CPG) companies participating in the Ibotta Performance Network will be able to deliver targeted promotions to millions of additional shoppers. Instacart’s marketplace includes over 1,500 retail banners and 85,000 locations across North America.
Instacart is also leveraging Ibotta to expand its CPG-funded promotions business. With existing relationships with over 6,000 CPG brands, Instacart believes Ibotta will help scale this segment of their business quickly, according to Chris Rogers, Instacart’s chief business officer.
Ibotta, which already works with retailers like Family Dollar and Schnuck Markets, pointed out that recent research indicates more than 40% of U.S. grocery shoppers use smartphone-based coupons—double the number who use paper coupons. Additionally, nearly half of consumers regularly rely on deals and promotions when grocery shopping.
This partnership with Ibotta is part of Instacart’s broader strategy to solidify its role as essential to grocers and product suppliers in a digital-first world. The company has also introduced a product that digitizes traditional printed grocery circulars, with over 20% of visits to these digital flyers resulting in items being added to customers’ carts. Moreover, Instacart is using its extensive shopper data and digital reach to strengthen its position in the rapidly growing retail media sector, as demonstrated by its January announcement to help food brands like Danone and Kraft Heinz promote their products on Google Shopping.
Source: Instacart
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