To give retailers access to its technology as well as company services, Instacart has developed a platform operation that retailers can use to enhance their interaction with it and tap new capabilities.
Retailers can choose the technologies a-la-carte or as one connected service that works across channels, Instacart maintained. The platform includes customized e-commerce storefronts plus a-la-carte recommendation and merchandising capabilities. It gives retailers access to solutions for online delivery and pickup from stores or warehouses that include everything from 15-minute ultrafast to next-day delivery.
The platform also offers advertising solutions to assist brands in connecting and engaging with consumers in digital aisles, and data tools retailers can use to optimize operations, provide more connected experiences and make informed business decisions, Instacart indicated.
In addition, the platform provides digital integrations and connected hardware that enhance the brick-and-mortar store experience including, for example, scanless carts and technology that can help manage operations.
At launch, Instacart Platform offers three initial capabilities, which the company described as:
- Carrot Ads. Designed to open new digital revenue streams, Carrot Ads gives retailers access to Instacart advertising capabilities including company technology, products, engineering and sales talent, as well as data insights, all linked to customer-owned and operated e-commerce sites. Carrot Ads gives Instacart customers new monetization tools, including revenue share models, to create an additional source of cash flow. Instacart is piloting its new ad service with Good Food Holdings, Schnuck Markets, Plum Market and other select retailers, with plans for wider roll it out later this year.
- Carrot Warehouses. Developed to help retailers create more flexible, local fulfillment models, Carrot Warehouse helps unlock capabilities such as 15-minute delivery. A full-stack solution within the platform, it facilitates interaction between Instacart and retailers that enables end-to-end fast delivery solutions customized to customer needs and can include the creation of new nano-fulfillment centers, devising floor plans, establishing automation services and running ongoing operations. In an industry first, Carrot Warehouses will support 15-minute ultra-fast delivery for Publix customers in Atlanta and Miami over the coming months.
- Carrot Insights. A service that provides near real-time visibility into customer operations, Carrot Insights aids retailers in making informed, proactive business decisions. Dashboards track key performance and operational metrics such as order volumes and out of stocks across Instacart Platform and retailers’ own Instacart App storefronts. New data analytics software helps retailers better understand geographic sales, out of stocks and customer buying trends. Carrot Insights can help manage and optimize retailer omnichannel operations, and all Instacart Platform customers can access it.
In helping to introduce the Instacart platform, Neil Stern, CEO, Good Food Holdings, said, “Across our five iconic food retailing brands, we’re operating in a dynamic industry where we need to meet consumer expectations, both online and offline. Our focus is to leverage the industry’s best technology and partnerships to future-proof our omnichannel retail business. We’re proud to be first-movers with Instacart Platform’s new Carrot Ads feature. We’ll now be able to take advantage of Instacart’s robust ad-tech and talent to help us unlock additional digital revenue streams for our e-commerce sites.”
Fidji Simo, CEO of Instacart, asserted, “The grocery industry is undergoing a digital transformation where customers expect a seamless experience across many channels, but behind the scenes, it’s taking an incredible amount of work and investment for retailers to deliver these new services. We’re looking to change that with the Instacart Platform. We started as the e-commerce and fulfillment partner of choice for grocers, and we’ve been building on that foundation to broaden and deepen our capabilities, in order to help retailers innovate faster than ever on their own properties.”
