Instacart is taking another step towards becoming a full-fledged technology platform.
On-demand delivery platform acquires FoodStorm, an order management system provider whose technology enables end-to-end pre-order and catering services for food retailers. Specifically, FoodStorm technology streamlines the manual process of customers calling or placing in-store orders for prepared foods by enabling multi-channel order management payment and fulfillment (e-commerce, phone or in-store kiosk). The solution also integrates with a wide variety of third-party systems, including point-of-sale solutions, and offers CRM functionality that helps grocers collect feedback, market their offerings, and leverage promotional features.
According to Instacart, customers on its platform who buy prepared meals and catering items such as hot and cold side dishes, cakes and sushi at the grocery store have much larger baskets and shop more frequently than customers who do not have one. For retailers, pre-ordered items and prepared foods are also generally more profitable than traditional groceries like fresh produce and packaged goods.
Throughout 2021, Instacart has taken a number of actions that strongly suggest it is looking to evolive in a large-scale technology platform like Amazon, Apple., Google and Facebook. In January, Instacart introduced a new model for its Instacart Pickup – Partner Pick service. Through Partner Pick, a retailer’s employees use Instacart’s customizable pickup technology to fulfill Instacart pickup orders. In July, the company operated Fiji Simo, who served as vice president and head of the Facebook application, to assume the role of CEO.
July also saw Instacart to unveil the first phase of a new micro-execution initiative, designed to bring automated technology solutions to retailers across the United States and Canada.
Founded in 2007, Foodstorm works with a number of existing Instacart retail partners, including Albertsons Cos. Balducci’s and Kings Food Markets, as well as Bi-Rite Market, Mollie Stone’s Markets, Uncle Giuseppe’s and Roche Brothers Supermarkets. Going forward, Instacart will make FoodStorm’s technology available to more retailers through its enterprise technology offering. In addition to acquiring FoodStorm’s technology and tools, Instacart will also hire FoodStorm’s entire team of employees, based in the United States and Melbourne, Australia.
“As a retailer-enabling platform, Instacart is focused on growing our partners’ businesses by investing in new, innovative technologies and services that deliver significant value to them and their customers,” said Mark Schaaf, CTO, Instacart. “Our goal is to help our retail partners increase their sales and ensure that more of their customers’ daily meals come from the grocery store. That’s why we’re thrilled to welcome the talented team at FoodStorm to Instacart and integrate their end-to-end catering and pre-ordering platform into Instacart’s leading business offering. For retailers, this new enterprise solution helps them bring even more of their inventory online, improve their e-commerce capabilities, grow their business and meet the changing needs of their customers. And, for customers, it opens up a healthier, more affordable alternative to restaurant delivery — creating an easier way for people to order prepared meals online directly from their favorite grocers.
“I’m incredibly proud of what the FoodStorm team has accomplished for our partners. We’ve developed market-leading software that makes it easier for grocers to fulfill prepared food and catering orders more efficiently, and everything track from a central location. This is a huge growth opportunity for grocers, and we have seen increased demand for our products as more and more customers seek online ordering capabilities and in-store,” said FoodStorm CEO Rob Hill. “Grocery is an incredibly complex retail category, making the need for enterprise-grade solutions like FoodStorm and Instacart critical to the long-term success of the industry we all rely on to put food on our tables. We’re excited for this next chapter as we join the Instacart team and create new ways for retailers to meet the ever-changing needs of their businesses and customers.”
Instacart partners with over 175 local, regional and national grocers across North America.
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