Instacart Survived Covid Chaos — But Can It Keep Delivering After The Pandemic?

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How Instacart survived the pandemic and whether it can continue: by chloesorvino

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The pandemic transformed Apoorva Mehta’s grocery delivery service into an essential—and booming—business. Now the 34-year-old billionaire is under pressure to outdo Jeff Bezos—all while dodging an avalanche of new competitors, rebellious workers and restless partners.poorva Mehta pauses for a moment to consider the past ten months of chaos. A year ago, he was running Instacart as a popular app that was gaining momentum. Then last spring came a massive Covid-fueled boost.

Mehta’s next step? Advertising: “Facebook and Google have done such a wonderful job landing people on others’ websites. The fact that we have a grocery-focused ad business is something very few companies have ever built.”They can use the help. Years of decreasing profits have fueled a spate of mergers, bankruptcies and consolidation. The sector’s wafer-thin margins don’t easily support Instacart’s fees, forcing many grocers to inflate their prices on the app.

Of course, turning a profit is easier when you’ve outsourced the sizable real estate footprint normally required to operate a food business. Instacart has no warehouses, no stores, no freezers, no delivery trucks—pretty much no physical assets at all. What it does have is the intellectual property that powers its app and the people who maintain it.

After graduating from the University of Waterloo, he spent four months at BlackBerry before joining Amazon in 2008, where he worked in Seattle as a supply-chain engineer managing warehouse inventory and merging shipments to cut costs. Looking to capture the feel of being inside a well-stocked supermarket, Mehta posted photos of available items on the app for customers to peruse. In the early days, he did most of the shopping himself, making deliveries via Uber. What he didn’t do was build warehouses. Or overhire. Using contract workers as shoppers, he solved the payroll problem that had plagued dot-com-era grocery bust Webvan.

The good news: Whole Foods agreed to wind down the partnership over two years. Mehta used that time to hit the road and visit every major grocer. It turned out that the Amazon deal spooked many of them as much as it rattled Instacart. “Everyone had read the same books, the story of what happens when Amazon enters an industry,” says Mehta, who at the time seemed like the far lesser threat. By the time Whole Foods left, he had added Kroger, Costco, Albertsons, Wegmans and Publix.

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chloesorvino Instacart screws their employees, let them go.

chloesorvino WHO CARES?!

chloesorvino nice

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