New Grocers Adopting Instacart's Carrot Tags Lead the Way in Elevating the In-Store Experience

Rhea-AI Summary

Instacart (NASDAQ: CART) announced that new grocers including ALDI, Gelson's, and Hornbacher's are adopting Carrot Tags, a software solution that integrates with electronic shelf labels (ESL) hardware. The technology enables pick to light functionality, helping e-commerce shoppers locate ordered items more efficiently and improve order accuracy. One retailer reported improved found rates and increased efficiency after implementation. The company plans to extend this feature to consumers through In-Store Mode on the Instacart App and Storefront Pro, as well as integrate it with Caper Carts.

Positive

• New major retailers (ALDI, Gelson's, Hornbacher's) adopting Carrot Tags technology
• Improved order accuracy and efficiency reported by implementing retailers
• Planned expansion of functionality to consumer-facing applications

Negative

• None.

Insights

Tech Expert

This technology rollout represents an important operational advancement in grocery retail. The Carrot Tags system, integrating with existing electronic shelf labels, significantly improves order fulfillment efficiency and accuracy. Key benefits include:

• Improved item location efficiency for e-commerce shoppers
• Higher order accuracy rates
• Reduced operational costs through better staff utilization
• Integration potential with other Connected Store technologies

The expansion to major retailers like ALDI validates the technology's value proposition. The planned extension to consumer-facing features through In-Store Mode and Caper Carts indicates a strategic move toward a more integrated shopping experience. This positions Instacart well against competitors in the grocery tech space while creating additional revenue streams from enterprise software solutions.

ALDI, Gelson's, and Hornbacher's Among New Grocers Leveraging Carrot Tags

SAN FRANCISCO, Nov. 7, 2024 /PRNewswire/ -- Instacart (NASDAQ: CART), the leading grocery technology company in North America, today announced that new grocers are connecting their electronic shelf labels (ESL) hardware to Carrot Tags' pick to light functionality. Carrot Tags is Instacart's software solution that seamlessly integrates into a retailer's electronic shelf labels (ESL) hardware to enable incremental functionality, including pick to light capabilities. Carrot Tags software enables retailers to provide a reliable online ordering experience to their customers by helping e-commerce shoppers locate ordered items, which in turn improves order accuracy.

"It's incredible to witness the momentum we're seeing among retailers adopting Carrot Tags and how it's transforming the experience for e-commerce shoppers fulfilling orders in-store," said David McIntosh, Chief Connected Stores Officer at Instacart. "Seeing additional retailers like ALDI, Gelson's, and Hornbacher's embrace Carrot Tags is a testament to how they are at the forefront of improving store operations and elevating customer service."

Retailers who have incorporated Carrot Tags pick to light software find that a majority of Instacart shoppers engaging with the feature are likely to use it again.¹ Additionally, one retailer who adopted the software saw improved found rates and increased efficiency, which in turn led to higher e-commerce order quality and customer satisfaction. Implementing Carrot Tags provides retailers with the opportunity to integrate the functionality with other Instacart Connected Store technologies. Looking ahead, pick to light functionality will be available to consumers for the first time on their shopping list via In-Store Mode on the Instacart App and Storefront Pro. Instacart is also planning to extend pick to light to Caper Carts which will enable customers to flash items - whether it's from their shopping list or an ad or coupon they saw - directly from their cart.

ALDI, Gelson's, and Hornbacher's are the latest retailers to roll out Carrot Tags following a recent chain wide rollout at Schnucks earlier this year. Carrot Tags is part of Instacart's Connected Stores suite of technologies, including Caper Carts, FoodStorm, Eversight and more, designed to bridge the online and in-store shopping experience for both retailers and customers. To learn more about Connected Stores, visit instacart.com/company/retailer-platform/connected-stores.

Hear more from grocers using Instacart's Carrot Tags:

"We see the value Carrot Tags offer as they help Instacart shoppers to be more independent when fulfilling online orders, allowing our associates to focus on store operations and providing excellent customer service," said Scott Patton, vice president at ALDI. "Our business model is based on efficiency and Instacart's enterprise technologies are just another way for us to enhance the customer experience while reducing costs and passing along savings to customers."

"Since our launch of Carrot Tags last year, we've noticed how it's given our customers who order their groceries online a reliable experience by providing a more accurate order fulfillment process by e-commerce shoppers," said Samantha Simmons, Director of Operations at Hornbacher's, a Coborn's, Inc. banner. "Additionally, it was fairly easy for us to integrate the software into our existing ESL hardware, making it a smooth rollout across our stores."

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.

¹ Includes Instacart shoppers who used Carrot Tags pick to light functionality again within 28 days of initial use between March 1, 2024 - November 1, 2024

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SOURCE Maplebear Inc. dba Instacart

FAQ

Which new retailers are implementing Instacart's (CART) Carrot Tags in 2024?

ALDI, Gelson's, and Hornbacher's are the new retailers implementing Instacart's Carrot Tags technology.

What improvements have retailers seen after implementing Instacart's (CART) Carrot Tags?

Retailers have reported improved found rates, increased efficiency, higher e-commerce order quality, and better customer satisfaction.

How will Instacart (CART) expand Carrot Tags functionality in the future?

Instacart plans to extend pick to light functionality to consumers through In-Store Mode on the Instacart App, Storefront Pro, and Caper Carts.