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Instacart Calls It Quits on Smart Carts

marian zboraj
Instacart caper cart
Weis Markets are among the grocers using Instacart's Caper Carts.

After several months of evaluating its smart cart business, Instacart has decided to wind down its Caper Carts operations. 

Instead the company will focus its resources on areas where it believes it can scale and deliver the most impact for its retail and brand partners, in addition to their shoppers. 

"While Caper is a great product, the business reality is that retailer adoption has not scaled quickly enough to justify our continued investment," Instacart noted in a company update.

Instacart told P2PI sibling publication Progressive Grocer that while roles were impacted, a large portion of employees will be remaining with the company and transitioning into new roles. 

Caper Carts were designed to offer consumers a streamlined, digitally augmented shopping experience. Equipped with interactive screens, cameras, location-tracking systems and built-in scales and scanners, users could clip coupons, redeem their loyalty benefits, find products throughout the store and check out straight from the cart. Grocers that have tested and/or implemented Caper Carts include Weis Markets, Schnucks, ShopRite, Wegmans, Kroger and many other independent retailers. 

"Retailers and brands today are balancing a number of competing priorities, and we’re seeing them prioritize investments in solutions that can modernize stores at scale," Instacart said in its update.

Instead of physical carts, the next phase of Instacart's in-store strategy will focus on intelligence and software.

“We believe our strengths in software, data, and AI give us a greater opportunity to help retailers and brands understand what’s actually happening on store shelves and take action on that information,” said the grocery delivery company. 

Most recently, Instacart introduced new in-store software solutions that give grocers and CPG brands a live view of stores, so shelves stay stocked and customers can find what they need.

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Other in-store solutions the company offers include:

  • FoodStorm: order management technology for prepared foods
  • Carrot Tags: electronic shelf label software that increases found rates
  • In-Store Mode: a digital shopping companion for the Instacart App and retailers’ apps
  • Store View scanning technology: AI and Arpalus-powered computer vision that analyzes videos captured by about 600,000 Instacart shoppers, giving partners a real-time view of the shelf
  • Inventory Intelligence: software that provides stores with real-time shelf visibility, merchandising optimization and demand forecasting

"In-store remains an integral part of the operating system we’re building for grocery: a single system that seamlessly powers both online and physical stores, giving retailers and brands the information and control they need to run their business," Instacart said in the statement

The discontinuation of the Caper Cart business comes amid acquisition reports. The Wall Street Journal reported on Oct. 26 that delivery rival DoorDash is in advanced talks to buy Instacart. The media outlet said that the deal could be completed as soon as this week and would value Instacart at around $17 billion.

This article was originally published on P2PI sibling publication Progressive Grocer.

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