What is a fair valuation for Instacart after IPO?

Coinbase
aquabeaver

Go to company page Coinbase

aquabeaver
Feb 12, 2021 33 Comments

Please make sure to account for the current market, IPOs seem to do well even if the value of the company is highly inflated (doordash/airbnb/snowflake etc.).

Currently Instacart is valued at 17.7B and supposedly plans to IPO at 30B ( https://money.usnews.com/investing/news/articles/2020-11-12/exclusive-instacart-taps-goldman-sachs-to-lead-ipo-at-30-billion-valuation-sources )

Please comment below with reasons!

#tech #instacart #ipo

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TOP 33 Comments
  • I'm obviously biased, but I think Instacart has a ton of potential.
    1) Grocery is a huge huge market ($600B in US)
    2) Average order size much larger than restaurant delivery ($150 vs. $60)
    3) Typical order much less time sensitive than restaurant delivery
    4) Advertising of consumer packaged goods is a huge market ($200B) of which Instacart has only barely scratched the surface. Could be huge for helping new brands/products market to new customers with much better targetting+tracking compared to status quo.

    2+3 mean much better unit economics compared to restaurant deliveries. 1+4 mean a huge amount of potential for growth and expansion.
    Feb 13, 2021 4
  • You know instacart has recent deals on equityzen valuing them at 70b right?
    Feb 19, 2021 9
  • I may stop using DoorDash or use it less often post pandemic. I’d like to experience the restaurants, meet people have food fresh. But not the same with grocery shopping, insptacart all the way it’s worth paying that little extra premium to buy the time back and have a routine supply of things I need for the week/month. Instacart all the way!! However, this is a biased opinion. Not all cities have the luxury of Bay Area customers. So there is that.
    Feb 27, 2021 0
  • Dropbox
    doucheboig

    Go to company page Dropbox

    doucheboig
    Will instacart survive post pandemic? The valuation could be totally different then
    Feb 12, 2021 7
    • Ya not sure how exactly grocery industry compares with restaurant industry, but there’s so many competitors in restaurant delivery. For grocery we are by far the dominant player with exclusive contracts with retailers. And in general the barrier to entry to grocery delivery is a lot higher than restaurant delivery too, so it’ll be difficult for others to enter/compete.
      Feb 13, 2021
    • Airbnb
      zb8nk

      Go to company page Airbnb

      zb8nk
      Grocery delivery we don’t see a competitor doing Instacart-like yes, but Amazon/Target/Walmart can easily become the competitor if they offer delivery right? (Amazon already does)
      Feb 17, 2021
  • Google
    helloitme1

    Go to company page Google

    helloitme1
    Internally, people are very optimistic. I think the Instacart blind, which is biased but also has more metrics, ran a similar poll.
    Feb 12, 2021 8
    • @Google - What is this Instacart blind you are talking about? Mind sharing the link? Interested in checking it out.
      Feb 21, 2021
    • Facebook - you must be new to blind. There's a company specific section that only employees can see. Google probably has not logged out from Google blind on one device, and is using Instacart blind on another.
      Feb 27, 2021