Instacart and Foodsmart Partnership Drives Significant Clinical Outcomes for Members with Diet-Related Chronic Conditions

Rhea-AI Summary

Instacart (NASDAQ: CART) and Foodsmart have released a white paper detailing the results of their two-year partnership, which has shown significant health improvements for members with obesity and diabetes. The program combines Foodsmart's telenutrition services with Instacart's medically-tailored grocery delivery, reaching over 98% of U.S. households.

Key findings from the study of 18,500+ members include:

• 52.9% of diabetic members saw a 0.5% reduction in HbA1c
• 47.1% of obese members achieved 5%+ weight loss after 21 months
• 8.6% improvement in nutrition scores for participants using both services
• Nearly doubled program engagement compared to telenutrition alone

The partnership aims to address poor nutrition, which is a leading driver of healthcare costs and chronic diseases in the U.S. The program provides a scalable solution for health plan members, offering education, support, and access to healthy foods.

Positive

• Partnership reached over 18,500 members, demonstrating scalability
• 52.9% of diabetic members saw clinically significant HbA1c reduction
• 47.1% of obese members achieved 5%+ weight loss after 21 months
• 8.6% improvement in nutrition scores for participants using both services
• Nearly doubled program engagement compared to telenutrition alone
• Instacart reaches 98% of U.S. households, including 93% in food deserts

Negative

• None.

Insights

Medical Research Analyst

This partnership between Instacart and Foodsmart demonstrates significant potential in addressing diet-related chronic conditions. The study's results are impressive:

• Enhanced diabetes management: 52.9% of members with diabetes saw a clinically significant 0.5% reduction in HbA1c
• Sustained weight loss: 47.1% of obese members achieved at least 5% weight loss after 21 months
• Improved nutrition habits: 8.6% improvement in nutrition scores for combined program participants
• Increased engagement: Nearly doubled program engagement compared to telenutrition alone

These outcomes suggest that integrating personalized nutrition guidance with accessible, medically-tailored grocery delivery can effectively support long-term behavioral changes. This approach could be particularly valuable as an adjunct to medications like GLP-1 agonists, potentially enhancing their efficacy and sustainability. The scalability of this solution, reaching 98% of U.S. households, positions it as a promising intervention for addressing the $1.1 trillion annual healthcare cost associated with diet-related chronic diseases.

Financial Analyst

This partnership represents a strategic move for Instacart (NASDAQ: CART) to diversify its revenue streams and tap into the lucrative healthcare market. Key financial implications include:

• Market expansion: Entering the $1.1 trillion diet-related healthcare spending market
• Recurring revenue potential: Health plan partnerships could provide stable, long-term income
• Competitive advantage: Differentiation from other grocery delivery services through health-focused offerings
• Increased user engagement: Nearly doubled program engagement could translate to higher customer lifetime value

The partnership's success in improving health outcomes could lead to increased adoption by health plans, potentially driving significant growth for Instacart in the healthcare sector. This move aligns with the trend of tech companies expanding into healthcare, potentially boosting Instacart's valuation multiples. However, investors should monitor the scalability of this program and its impact on Instacart's core business metrics and profitability.

New findings reveal that comprehensive Foodcare – combining Instacart with Foodsmart telenutrition – nearly doubled member engagement, delivered clinically significant improvements in diabetes management, and increased the number of members achieving sustained 5% weight loss

SAN FRANCISCO, Oct. 21, 2024 /PRNewswire/ -- Instacart (NASDAQ: CART), the leading grocery technology company in North America, and Foodsmart, the nation's largest telenutrition provider, released a detailed white paper showcasing results from their partnership over the past two years, including significant positive health outcomes for thousands of people living with obesity and diabetes.

Lack of access to nutrition is the leading driver of poor health outcomes, and according to the CDC, poor nutrition and related diseases account for most illness, disability, and death in the U.S. Poor diets are also the leading drivers of healthcare costs, and 85% of all health care spending is related to the management of diet-related chronic disease – costing roughly $1.1 trillion each year.

Effective, scalable solutions that acknowledge the critical link between nutrition and health need to be integrated into health care delivery. As treatments like GLP-1s expand, experts recognize the effectiveness of these medications but also assert that sustained improvements in health depend on long-term dietary and behavioral changes. These changes are crucial for members living with diabetes and obesity to improve their health, whether as part of a lifestyle shift or to complement medication.

Offered to members of health plans including commercial, Medicare and Medicaid, the Foodsmart and Instacart program combines FoodSMART telenutrition services with medically-tailored groceries via Instacart. Members receive Instacart Health Fresh Funds stipends to purchase dietitian-recommended foods from their preferred local grocery store on Instacart. Instacart today reaches more than 98% of U.S. households, including 93% of those located in food deserts. The joint program provides a scalable and personalized solution for members with chronic diseases by offering the tools, education and support needed to make lasting behavior changes that lead to health improvements.

Health plan members that participated in the joint program saw enhancements in nutrition and dietary habits, improved diabetes management and sustained weight loss, across thousands of member interactions over a two-year period. Of the more than 18,500 members included in this retrospective analysis who utilized the combined power of Foodsmart with Instacart, results included:

• Enhanced Diabetes Management: 52.9% of members with diabetes who combined telenutrition and Instacart saw a clinically significant 0.5% reduction in Hemoglobin A1c (a key marker of diabetes management), compared to 43.2% for telenutrition-only participants.
  
  
• Weight Loss that Sustains: Adding medically-tailored groceries through Instacart increased the likelihood of a member to achieve 5%+ in weight loss by nearly 50%. At 21 months, 47.1% of members living with obesity who participated in both programs achieved at least 5% weight loss, compared to 32.1% of those using only telenutrition services. 
  
  
• Better Nutrition Habits: Participants combining telenutrition and grocery delivery saw an 8.6% improvement in nutrition scores, compared to a 3.3% improvement in those using telenutrition alone.
  
  
• Impactful Increase in Engagement: Members using both telenutrition and Instacart's online grocery services nearly doubled their program engagement, compared to those using telenutrition services alone, suggesting that combining telenutrition and Instacart not only boosts engagement but may also promote better interactions with dietitians.

"Clinical outcomes from Foodsmart's partnership with Instacart demonstrate the powerful role that medically-tailored groceries and accessible delivery can play in healthcare," said Sarah Mastrorocco, Vice President and General Manager of Health at Instacart. "Through Foodsmart's program, Instacart provides access to medically-tailored nutritious food delivered from trusted local grocers, empowering members with the tools to make more informed choices, sustain healthy habits and improve their health over the long term."

"The partnership between Instacart and Foodsmart is one of the largest demonstrations of how comprehensive Foodcare can equitably lower chronic disease outcomes and healthcare costs at scale across the U.S.," said Dr. Jason Langheier, CEO and Founder of Foodsmart. "Everyone in America should have easy access to a primary care dietitian, like those provided by FoodSMART telenutrition, so families have a trusted partner to set up the Foodcare environment that supports their long-term well-being and helps them navigate behavior change in a sustainable way. Instacart's enablement of online grocery shopping and Fresh Funds subsidies reaching nearly every household in the U.S. gives every American and their dietitian the opportunity to fundamentally change their lives for the long run."

To learn more about the program's impact on nutrition, weight management, and diabetes control, download the full white paper here.

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 1,500 national, regional, and local retail banners to facilitate online shopping, delivery and pickup services from more than 85,000 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 Foodsmart
Foodsmart is the largest telenutrition and food benefits management platform in the U.S., backed by the largest national network of Registered Dietitians. Foodsmart's platform helps patients make consistently healthier food choices,  lasting behavior change and long-term positive health outcomes.. Foodsmart's digital platform guides members through a personalized journey to eating well while saving them time and money, through seamlessly integrating dietary assessments and nutrition counseling, personalized meal planning, SNAP enrollment, and budget-friendly online food ordering options. Learn more at www.foodsmart.com.

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SOURCE Instacart

FAQ

What are the key results of the Instacart (CART) and Foodsmart partnership?

The partnership resulted in 52.9% of diabetic members seeing a 0.5% reduction in HbA1c, 47.1% of obese members achieving 5%+ weight loss after 21 months, an 8.6% improvement in nutrition scores, and nearly doubled program engagement compared to telenutrition alone.

How many members were included in the Instacart (CART) and Foodsmart study?

The study included more than 18,500 members who utilized the combined power of Foodsmart with Instacart over a two-year period.

What is the reach of Instacart's (CART) grocery delivery service in the U.S.?

Instacart reaches more than 98% of U.S. households, including 93% of those located in food deserts.

How does the Instacart (CART) and Foodsmart program work for health plan members?

The program combines Foodsmart telenutrition services with medically-tailored groceries via Instacart. Members receive Instacart Health Fresh Funds stipends to purchase dietitian-recommended foods from their preferred local grocery store on Instacart.