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Since the start of the COVID-19 pandemic last March, we have seen an increase in the usage of delivery services across the country. And it makes sense. Everyone everywhere needed to stay inside for quarantine, so shopping online and having things delivered to you was easier and recommended.
Recently, shopping and delivery apps like Instacart are at their all-time high in sales, and the pandemic is to thank for that. For those who don’t know what Instacart is, it is a grocery delivery app that makes your shopping experience so much better because you don’t have to leave your home at all. Unlike the curbside pickup’s that tons of stores started doing last year, Instacart has a set of gig/freelancer workers who do the grocery shopping for you. They charge a delivery fee that can get up to $9.00 or you could subscribe and become a member to get free delivery for a year for only $100.00.
Because of the company’s recent success, they are planning on going public in the near future. However, unlike other companies out there, Instacart is looking into skipping the traditional IPO (Initial Public Offering) that is done through the stock market. Instead, they are looking into a direct listing which means no new shares and no underwriters are involved. They would sell it straight to the public without raising the money through a stock and the reason why they believe it can be done is because of how successful it has been.
However, this success isn’t going to last forever. One of the main concerns that Instacart and other delivery-based apps have to worry about right now is what will happen when the pandemic is over and it’s safe to go outside. Will people still be using and relying on these apps? How long after stay-at-home orders lift will the money keep flowing? No one really knows.
What are your thoughts about Instacart’s recent success? Let us know in the comment section.
This article originally published on GREY Journal.