Instacart Surges Past Walmart in US Online Grocery Market

Instacart has been able to keep better pace with COVID-19 due to its unique positioning as a logistics providing partner.

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Instacart has grown to become the number one online grocery platform in the United States, passing Walmart, according to third party data. Instacart’s unique positioning as a logistics providing partner to a marketplace of retailers has enabled the platform to better keep pace with COVID-19 driven online grocery demand. According to the data, Instacart accounted for 57% of weekly online grocery market share in April.

It appears however that as other online grocery providers catch up to demand levels and US consumers reach a new normal, Instacart’s share gains are now slowing. While Instacart may have been best positioned to serve the COVID-19 health crisis, most other grocery players still benefited. Walmart reported 74% US ecommerce sales growth in Q1 and Target saw digital comparable sales grow 278% on the quarter.

Brands are recognising the significance of these platforms and moving quickly to activate substantial levels of paid search, driving visibility and conversion. Flywheel by Ascential, an API partner to both Walmart and Instacart, reports a 375% increase in paid search activations on the Instacart platform over the last two months, while also seeing a 35% increase in activations over that same period. As shoppers shift channels, Instacart’s relevance to the future of ecommerce, particularly grocery ecommerce, makes it a critical priority in grocery-relevant manufacturer’s strategic planning.

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