Instacart Acquires Software Company Foodstorm
Online grocery platform Instacart announced yesterday it has acquired software company Foodstorm, which powers a catering order management system for grocery retailers. The move expands Instacart’s enterprise technology services while allowing its retail partners to grow ecommerce sales of their prepared food offerings.
The U.S. and Melbourne, Australia-based Foodstorm team will join Instacart as part of the deal, the terms of which were not disclosed. Founded in 2007, FoodStorm’s software simplifies how consumers order and pay for prepared foods at retail.
“This is a huge growth opportunity for grocers, and we’ve seen increased demand for our products as more customers are searching for seamless online and in-store ordering capabilities,” 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.”
Retailers who use the software are able to better compete with restaurants, giving consumers an alternative to restaurant delivery, Instacart Chief Technology Officer Mark Schaaf noted.
A statement by Instacart also noted that these products are generally more profitable than CPG items, and shoppers who buy them generally have larger basket sizes. While this will benefit retail partners, it also will help Instacart with its own revenues at a time when formerly takeout-only delivery services, such as Uber and Doordash, are now also offering delivery of CPG products.
“Instacart is focused on growing our partners’ businesses by investing in innovative new technologies and services,” said Mark Schaaf, Chief Technology Officer, Instacart. “Our goal is to help our retail partners increase their sales and ensure more of their customers’ everyday meals come from the grocery store.”
Foodstorm had previously formed partnerships with many of Instacart’s existing retail partners, including several Albertsons banners as well as Roche Brothers Supermarkets and Bi-Rite Market.
According to the company, Instacart’s enterprise technology — supporting white-label websites and delivery solutions — is utilized to support the ecommerce platforms of 175 North America grocers including Sprouts, The Fresh Market and Wegmans. Meanwhile, Over 600 retailers across 55,000 stores use Instacart’s same-day delivery and pickup services, with 300 stores using its under 30 minute Priority Delivery option launched in June.
