COVID-19 impacted our lives in many ways. Secular trends were accelerated, for better or for worse. We saw this with the wave of bankruptcies across department stores, as well as increased adoption of growing technologies.
E-Commerce experienced years worth of adoption compressed into a few months, with grocery delivery being one key part within this.
Recent data from Edison Trends shows Instacart with over a 60% share of grocery delivery, followed by Amazon which holds just over a 20% share.
Investment Implications
Prior to the onset of COVID-19, Instacart and Amazon each shared about a 40% share of transactions in the space. As the pandemic impacted the lives of many consumers, businesses were forced to ramp up their efforts in online delivery. This set the scene for a long-time leader like Amazon – although performing well – to cede share to competitors who stepped up their game.
Today, Instacart has moved beyond pure grocery delivery and into other areas. In addition to this, they have integrated self-serve advertising into their business model. Companies like DoorDash, which started in food delivery as opposed to grocery, have also begun to move into delivering general merchandise.
It’s interesting to think of what the opportunity for these companies looks like, as they converge on delivering convenience yet seek to differentiate themselves.
Twitter: @_SeanDavid
The author or his firm may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
