Instacart Sees Slower Growth Even as Users Increase
**Instacart Sees Slower Growth Even as Users Increase**
By Alex Perry
2 days ago
Source: The Information
Instacart's revenue grew 10% in the fourth quarter to $883 million, a slightly slower growth rate than in the third quarter. The quarter ended a year where Instacart's revenue growth slowed sharply but order growth jumped.
During the year, Instacart dropped delivery charges for orders as small as $10 for subscribers to Instacart's Instacart Plus service, which may have increased the number of small orders. CFO Emily Reuter said on the company's earnings call on Tuesday that the average value of orders dropped 1% year-over-year.
The company expects the average order value to continue declining this quarter due to an increase in restaurant orders and delivery discounts offered in-app. Reuter said growth in 2025 would be driven in part by its advertising and other revenue category, which also grew 10% year-over-year. She also expects orders growth to continue outpacing gross transaction value growth.