Instacart "Continued Growth in Online Grocery Sales"
Following Sephora, Ultabeauty Also Offers Same-Day Delivery for Cosmetics
[Asia Economy Reporter Cho Hyun-ui] Instacart, a grocery delivery service company known as the "American version of Market Kurly," predicted that the share of online grocery sales in the U.S. will continue to increase even after the pandemic.
Fidji Simo, CEO of Instacart, said at an event hosted by The Wall Street Journal (WSJ) on the 19th (local time), "The pandemic has changed the way consumers purchase groceries." Currently, online sales account for 10% of the total grocery market, but it is expected to grow to over 30% within a few years.
Instacart is a service where users order groceries through an app, and the groceries are shopped and delivered within 1 to 2 hours. It rapidly grew after COVID-19, with a corporate valuation reaching $39 billion (approximately 44.9 trillion KRW). Instacart is preparing to be listed on the New York Stock Exchange within this year.
In the U.S., bullet delivery services that allow same-day delivery in various fields are becoming commonplace. Instacart has expanded its scope beyond groceries to include prescription drugs and office supplies, and introduced a delivery service within 30 minutes, reducing delivery time by up to 1 hour and 30 minutes compared to existing services.
CEO Simo expressed confidence in the company's continuous growth, saying, "Grocery stores handle a variety of products that Amazon has not yet penetrated."
Cosmetics distributors are also adopting bullet delivery. Sephora, operated by the French luxury group LVMH, started same-day delivery last week in major U.S. regions. Customers who pay a delivery fee of $6.95 (approximately 8,190 KRW) and purchase before 4 p.m. can receive their orders on the same day.
Sephora's competitor, Ulta Beauty, the largest cosmetics specialty store in the U.S., plans to start same-day delivery in some areas before the year-end shopping season, CNBC reported on the same day.
Prama Bhatt, Chief Digital Officer (CDO) of Ulta Beauty, said, "Consumers expecting fast service are gradually increasing," adding, "Speed will be an important variable going forward."
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