Instacart's 2024 Q4 Earnings Call: Unpacking Contradictions in Affordability, Caper Carts, and Advertising Growth

These are the key contradictions discussed in Maplebear Inc.'s latest 2024Q4 earnings call, specifically including: Affordability Initiatives and Order Growth, Caper Carts Deployment and Impact, Advertising Growth Strategy, and Supply Growth and Shopper Retention:



Strong Financial Performance:
- Instacart reported GTV growth of 10% year-over-year for Q4, with an 11% increase in orders, despite a 1% decline in average order value.
- The growth was driven by increased orders from both new and existing users, particularly from Instacart+ members.

Advertising Revenue Growth:
- Instacart's advertising and other revenue increased by 10% year-over-year, supported by strong performance from emerging brands and large brand partners.
- Growth was driven by innovative ad products, advanced targeting, and measurement tools, enhancing brand engagement and performance.

Affordability and Consumer Engagement:
- Instacart's efforts to improve affordability, including EBT SNAP acceptance and digital flyers, led to savings of about $1.2 billion for customers in the past year.
- These initiatives contributed to increased order frequency, stronger 2024 cohort engagement, and deeper Instacart+ penetration.

Expansion into New Verticals:
- The addition of restaurant deliveries and a $10 minimum basket feature contributed to higher order frequency and broader customer adoption.
- This expansion enhanced stickiness on the platform, promoting additional grocery orders and increased Instacart+ engagement.