1. News
October 8, 2021

Instacart buys order management software provider FoodStorm

Since 2017, Instacart has made substantial investments in its enterprise business.

US-based online grocery platform Instacart has acquired software as a service (SaaS) order management system provider FoodStorm for an undisclosed sum.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Founded in 2007, FoodStorm powers end-to-end order-ahead and catering experiences for grocery retailers.

It has already partnered with several of Instacart’s existing retail partners, including Balducci’s, Kings Food Markets and Roche Brothers Supermarkets.

Following the acquisition, Instacart will integrate FoodStorm’s technology into its enterprise offering to help its retail partners streamline their grocery meal experience.

It will also take on the FoodStorm team, which is based in the US and Melbourne, Australia.

Instacart chief technology officer Mark Schaaf said: “Our goal is to help our retail partners increase their sales and ensure more of their customers’ everyday meals come from the grocery store.

“That’s why we’re excited to welcome the talented FoodStorm team to Instacart and integrate their end-to-end order-ahead and catering platform into Instacart’s leading enterprise offering.

“For retailers, this new enterprise solution helps them bring even more of their inventory online, enhance their e-commerce capabilities, grow their business and meet the evolving needs of their customers.

“And for customers, this unlocks a healthier, more affordable alternative to restaurant delivery – creating an easier way for people to order prepared foods online directly from their favourite grocers.”

FoodStorm CEO Rob Hill said: “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 we all rely on to put food on our tables.

“We’re excited about this next chapter as we join the Instacart team and create new ways for retailers to serve the ever-changing needs of their businesses and customers.”

Instacart offers same-day delivery and pickup services for fresh groceries and everyday essentials across the US and Canada.

In July, the company partnered with e-commerce technology start-up Fabric to offer automated fulfilment solutions to grocery retailers across North America.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.