Hy-Vee RedMedia Partners with Instacart to Further Retail Media Capabilities

Rhea-AI Summary

Instacart (NASDAQ: CART) and Hy-Vee have announced a strategic partnership to enhance Hy-Vee RedMedia's advertising capabilities through Instacart's Carrot Ads solution. The integration will give Hy-Vee access to Instacart's ad technology and CPG advertising ecosystem, connecting with over 7,000 brands.

The partnership will enable advertisers to extend their Instacart campaigns to Hy-Vee's e-commerce platform, creating more personalized shopping experiences and improved product discovery for customers. This expansion builds upon their existing relationship, which began in 2018 with same-day delivery services and has since grown to include fulfillment and pickup services.

Hy-Vee operates more than 570 business units across nine Midwestern states. The Carrot Ads capabilities on Hy-Vee RedMedia will be available to advertisers later in 2025, joining over 220 retailer banners already utilizing the platform.

Positive

• Expansion of advertising reach to 7,000+ brands through Instacart's network
• Integration with major Midwest retailer operating 570+ business units
• Addition to growing network of 220+ retailer banners using Carrot Ads
• Strengthening of existing partnership that began in 2018

Negative

• None.

Insights

Retail Technology Expert

Instacart's expansion of its Carrot Ads solution to Hy-Vee represents a strategic enhancement of its retail technology ecosystem. By integrating its ad tech into Hy-Vee's e-commerce platform, Instacart is executing on its 'land and expand' strategy that has evolved from basic delivery (2018) to fulfillment services (2023), pickup capabilities (2024), and now advertising technology.

This partnership demonstrates how Instacart is transforming from a delivery service into a comprehensive grocery technology provider. The company now powers over 220 retailer banners with its advertising technology, creating a network effect where each additional retailer increases the platform's value to CPG advertisers.

For Instacart, this represents an expansion of its high-margin retail media business with minimal incremental costs, as the technology infrastructure already exists. Embedding their technology deeper into retailers' operations creates stickier relationships and higher switching costs, potentially securing long-term revenue streams beyond volatile delivery services.

The integration with a substantial grocery chain (570+ Hy-Vee locations) extends Instacart's advertising reach and enables cross-platform campaigns for its 7,000+ brand advertisers, creating a more compelling value proposition in the competitive retail media landscape.

Advertising Strategist

This partnership significantly enhances Instacart's retail media network by adding Hy-Vee's considerable Midwest presence to its advertising ecosystem. The integration creates a seamless extension for CPG brands running campaigns on Instacart to reach Hy-Vee's customer base without additional campaign setup – a compelling efficiency for advertisers seeking simplified multi-retailer campaigns.

For advertisers, this partnership delivers enhanced targeting capabilities across a wider audience footprint. The ability to leverage Instacart's existing relationships with 7,000+ brands creates immediate advertising demand for Hy-Vee's platform while providing those brands with expanded reach into the Midwest grocery market.

The timing aligns with the broader retail media expansion trend, where grocers are capitalizing on their first-party customer data for high-margin advertising revenue. By utilizing Instacart's established technology rather than building proprietary systems, Hy-Vee accelerates its retail media capabilities while Instacart secures another revenue stream beyond its core delivery business.

The phased implementation ("available to advertisers later this year") suggests revenue impact won't be immediate, but establishes a foundation for long-term advertising income as Instacart continues building its retailing technology stack beyond transactional services into higher-margin media offerings.

Leading Midwest grocer taps Instacart's Carrot Ads solution to expand retail media advertising for CPG brands

SAN FRANCISCO and WEST DES MOINES, Iowa, March 25, 2025 /PRNewswire/ -- Instacart (NASDAQ: CART), the leading grocery technology company in North America, and Hy-Vee, Inc., an employee-owned supermarket chain operating more than 570 business units across nine Midwestern states, today announced that Hy-Vee RedMedia will enhance its advertising capabilities by utilizing Instacart Carrot Ads, creating a more personalized experience across Hy-Vee.com.

Instacart's Carrot Ads solution will deliver advertiser demand from more than 7,000 brands, helping Hy-Vee create even more relevant experiences that drive personalized recommendations and product discovery for their customers. The new integration will give Hy-Vee RedMedia access to Instacart's ad technology, and extensive CPG advertising ecosystem. Advertisers will soon be able to seamlessly extend their Instacart campaigns to Hy-Vee's e-commerce platform through expanded ad inventory.

"As an innovator in the retail media space, Hy-Vee has largely been ahead of the curve in its commitment to building and growing its retail media capabilities," said Alice Luong, Senior Director of E-commerce & Retail Media at Instacart. "We're creating an even more attractive offering for advertisers to easily stay connected with customers wherever they choose to shop among Instacart's growing network of retail sites powered by Carrot Ads, which will now include one of the Midwest's largest grocers. This will also simultaneously improve the customer shopping experience through ad tech capabilities that drive ad personalization and make product discovery easier."

"Retail media is a critical driver of the grocery ecosystem, and since launching Hy-Vee RedMedia, we've been committed to strengthening our capabilities in this area," said Kathryn Mazza, president of Hy-Vee RedMedia and chief marketing officer of Hy-Vee, Inc. "Our partnership with Instacart through their Carrot Ads solution exemplifies how we're continuing to enhance our offerings by expanding the value we bring to advertisers."

Carrot Ads extends Instacart's ad technology to support retail partners in growing their own retail media networks on their owned websites and apps. Today, more than 220 retailer banners utilize Carrot Ads to power their retail media business and offer ads on their e-commerce site.

Hy-Vee and Instacart first partnered in 2018 when they introduced same-day delivery to Hy-Vee customers for the first time through the Instacart App. In 2023, Hy-Vee and Instacart expanded its omnichannel partnership by adding Instacart's Fulfillment Services, integrating Instacart's fulfillment capabilities for same-day delivery into its owned and operated websites and apps. The partnership further expanded in 2024 with the addition of pickup services.

Carrot Ads capabilities on Hy-Vee RedMedia will be available to advertisers later this year.

For more information about Carrot Ads, visit www.instacart.com/company/retailer-platform/carrot-ads.

About Instacart
Instacart, the leading grocery technology company in North America, works with grocers and retailers to transform how people shop. The company partners with more than 1,800 national, regional, and local retail banners to facilitate online shopping, delivery and pickup services from more than 100,000 stores across North America on the Instacart Marketplace. Instacart makes it possible for millions of people to get the groceries they need from the retailers they love, and for approximately 600,000 Instacart shoppers to earn by picking, packing and delivering orders on their own flexible schedule. The Instacart Platform offers retailers a suite of enterprise-grade technology products and services to power their e-commerce experiences, fulfill orders, digitize brick-and-mortar stores, provide advertising services, and glean insights. With Instacart Ads, thousands of CPG brands – from category leaders to emerging brands – partner with the company to connect directly with consumers online, right at the point of purchase. With Instacart Health, the company is providing tools to increase nutrition security, make healthy choices easier for consumers, and expand the role that food can play in improving health outcomes. For more information, visit www.instacart.com/company, and to start shopping, visit www.instacart.com. Maplebear Inc. is the registered corporate name of Instacart.

About Hy-Vee
Hy-Vee, Inc. is an employee-owned corporation operating more than 570 business units across nine Midwestern states with sales of more than $13 billion annually. The supermarket chain is synonymous with quality, variety, convenience, healthy lifestyles, culinary expertise and superior customer service. Hy-Vee was recently named the No. 1 grocery store in America by USA TODAY. The company's more than 75,000 employees provide "A Helpful Smile in Every Aisle" to customers every day. For additional information, visit www.hy-vee.com.

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SOURCE Maplebear Inc. dba Instacart

FAQ

When will Instacart's (CART) Carrot Ads be available on Hy-Vee RedMedia platform?

Carrot Ads capabilities on Hy-Vee RedMedia will be available to advertisers later in 2025.

How many brands will Hy-Vee RedMedia have access to through Instacart's (CART) advertising network?

The partnership will give Hy-Vee access to advertiser demand from more than 7,000 brands through Instacart's network.

How many retailers currently use Instacart's (CART) Carrot Ads platform?

More than 220 retailer banners currently utilize Carrot Ads to power their retail media business.

What is the scope of Hy-Vee's current operations that will benefit from Instacart's (CART) Carrot Ads?

Hy-Vee operates more than 570 business units across nine Midwestern states that will benefit from the enhanced advertising capabilities.