Instacart continued to deploy artificial intelligence (AI) tools across its operations during the first quarter, aiming to deliver the things customers want most: convenience, affordability, quality and selection, Instacart CEO Fidji Simo wrote in the company’s first-quarter letter to shareholders released Thursday (May 1).
The company added these tools during a quarter in which it achieved growth in orders that was the fastest it has seen in 10 quarters, according to the letter.
During the first quarter, the firm grew its orders by 14% year over year to 83.2 million and its gross transaction value (GTV) by 10% to $9.122 billion.
“Even though macro uncertainty remains, we have not seen any unexpected changes in consumer behavior through April,” Simo said Thursday during the company’s quarterly earnings call. “We reach 98% of households in North America, and customer engagement remains consistent across geographies and income levels.”
Among the AI-powered tools Instacart now offers are AI-driven pairings that suggest complementary items based on what was just added to the customer’s cart, AI-powered personalization called Smart Shop that helps customers find items that meet their dietary preferences or their kids’ or pets’ needs, and its AI-powered Store View that uses computer vision and videos of store shelves to help merchants keep items in stock, according to the letter.
For its retail media network business, Instacart announced Universal Campaigns, which uses AI to allocate and optimize a brand’s budget across formats and placements.
To deepen its integrations with retailers, the company added AI-powered catalog tools that classify new products more quickly and accurately and add products to the Instacart marketplace in hours instead of days, per the letter.
“Across every part of our business, we’re continuing to leverage AI to work smarter, move faster and further establish Instacart as a leader in AI-driven development,” Simo said during the call.
Of Instacart’s acquisition of eCommerce solution provider Wynshop, which was announced earlier in the day on Thursday, Simo said in the letter that the combination of the two companies’ expertise and retailer relationships will strengthen Instacart’s enterprise solutions and extend its reach to more retailers.
Looking ahead, Instacart expects its GTV to grow between 8% and 10% year over year during the current quarter, reaching $8.85 billion to $9 billion, and its orders growth to outpace the GTV growth, per the letter.
“Overall, we’re pleased with our strong start to the year, and we’re well positioned to navigate current macro conditions,” Instacart Chief Financial Officer Emily Reuter said during the call. “Instacart has proven that we can grow through uncertainty, and we’re laser-focused on helping our partners succeed, no matter what lies ahead.”
