With IPO pending, Instacart upgrades smart carts and storefronts with AI-powered tech

On the heels of Instacart’s move to go public, the grocery tech company announced Thursday that it has implemented a broad range of updates to its Instacart Storefront and Caper Carts technology. 

The e-commerce storefront technology, used by more than 550 retail banners, such as Costco, Price Chopper/Market 32 and Tops Friendly Markets, has been updated to feature a conversational search option powered by artificial intelligence.  

The feature, which is powered by OpenAI’s ChatGPT language models and Instacart’s product data and AI models, enables shoppers to ask questions, such as, “What do I need to make fish tacos?” or “What’s a nutritious lunch for my kids?” the company said.  

The digital storefront was also upgraded with an “In-Store” mode in select markets, enabling customers to see what’s in stock and view details such as whether a particular product is SNAP EBT-eligible, according to Instacart. The rollout is currently available at Food Bazaar, Gelson’s and Stew Leonards. 

“We’ve long believed the future of grocery—and commerce in general—isn’t online or in-store, it’s both. And now, more than ever, it’s being supercharged with AI,” said Instacart Chief Operating Officer Asha Sharma in a statement. “We know that omnichannel customers in particular are more valuable to retailers, which is why Instacart is developing more solutions that help retailers serve their customers no matter how they shop.  

Related:Instacart files its long-awaited IPO plans, with PepsiCo as big backer

“And good data is the foundation for good AI solutions for retailers. Our operational advantage is built around our dynamic grocery catalog—which is one of the largest in the industry and includes 1.4 billion items and more than 6,000 item updates per second—paired with more than a decade of knowledge about how people shop for groceries online.” 

Instacart said the new storefront functionality also helps retailers understand their customers better, irrespective of whether they’re shopping online or in-store.  

“Our partnership with Instacart has played a critical role in advancing our omnichannel e-commerce strategy, enabling seamless online shopping for our customers regardless of device,” said Food Bazaar Executive Vice President Ed Suh in a statement. “The new Instacart Storefront takes our partnership one step further, making the overall experience even more dynamic, equipping our team with powerful tools to showcase and market our extensive and diverse product line to our customers, and allowing for more seamless integrations, especially with critical channels such as our weekly flyer or loyalty. These powerful backend tools, combined with a more customer-friendly app shopping experience, fully aligns our e-commerce strategy with our overall commitment to convenience at every customer touchpoint.” 

Related:Instacart faces big challenges as IPO advances

Instacart also updated the storefront with new merchandising and marketing capabilities, including shoppable digital flyers, more self-serve capabilities and better tools and analytics information.  

Instacart also announced that it has upgraded its AI-powered Caper Carts, which are already in operation in stores such as Bristol Farms, Schnucks, ShopRite and Fairway Market. The updates include: improved speed and precision of the carts’ cameras and weight sensors; the ability to purchase made-to-order items without waiting in line at the deli counter; the ability to earn in-store rewards while shopping; and an upgraded docking system that enables stacked charging, so the carts don’t need to be plugged in individually. 

The tech upgrades news follows Wednesday’s announcement of Instacart’s new Instacart for Shopify app, which creates a direct line for CPG companies that use Shopify as an online platform to access Instacart Ads.  

Merchants can use the app to track their sales on Instacart, create Ads Manager accounts and view ad performance metrics, the company said in a press release.  

Related:Schnucks to deploy Instacart smart carts this fall

"With our extensive catalog across more than 80,000 retail partner stores in North America, we believe Instacart has one of the best platforms to help emerging brands grow," said Ali Miller, vice president of product management at Instacart, in a statement. "Combining our scale with Shopify's merchant network creates a really powerful discovery tool for brands looking to understand their impact across different channels. With the Instacart for Shopify app, brands can learn about the sales they're already driving on Instacart, and immediately take action by setting up Instacart Ads to supercharge discovery and sales." 

Ad sales have been a major source of revenue growth for the company, which revealed in its filing with the Securities and Exchange Commission that ad sales made up 28% of the company’s total revenue for the first half of the year, a 24% increase to $406 million from the same period in 2022.