Instacart acquires e-commerce technology firm Wynshop
Instacart is strengthening its position as a provider of e-commerce solutions for grocers.
The grocery technology company, which launched as a third-party delivery platform but has expanded its business model to become a major tech firm and went public in 2023, has acquired Wynshop, a provider of e-commerce solutions for more than a dozen global grocers and retailers including Wakefern and Pattison.
"Our deep integration with retailers and our leading technologies are critical advantages for Instacart," said Chris Rogers, chief business officer at Instacart. "By offering our partners an array of enterprise-grade solutions, we can help them better serve customers and drive sales. By acquiring Wynshop, we're building upon our retailer relationships, adding new capabilities to Storefront Pro, and over time, bringing our enterprise solutions to even more partners to help them grow their business."
Instacart builds on 10-year tech-focused plan
In 2022, Instacart CEO Fidji Simo marked Instacart’s 10th anniversary by publicly outlining the company’s strategy for the next 10 years. Saying grocery is ready for its "next, tech-enabled chapter," Simo stated that "the future of grocery belongs to those that invented it — not tech goliaths or newcomers trying to drive grocers out of business."
This was likely a shot at Amazon, a company Simo credited for understanding the importance of technology to retail better than anyone while also commenting online grocery is the biggest retail category not currently dominated by Amazon.
Instacart began moving forward with the plan outlined by Simo by rolling out Instacart Platform, which is used by more than 600 grocers and comprised of e-commerce storefronts and fulfillment solutions custom-built for grocers, as well as digital integrations and connected hardware to enhance the brick-and-mortar store experience.
The platform also includes advertising solutions and data tools, as well as a full-stack warehouse solution designed to enable end-to-end fast delivery solutions customized to retailer needs.
Instacart also launched Connected Stores — a bundle of new and existing Instacart Platform technologies intended to help grocers build a unified, seamless and personalized experience — online and in-store.
Connected Stores includes Caper Cart, an AI-powered smart cart Instacart acquired in October 2021 and has upgraded several times since which is equipped with scales, sensors, touchscreens, and computer vision technology. It also offers a scan & pay feature which lets customers scan items as they shop and pay for them using their mobile phone.
Other Connected Stores features include the FoodStorm order management system (OMS), which Instacart acquired in October 2021; Carrot Tags, which enable retailers to connect electronic shelf labels to Instacart Platform to add functionality such as pick-to-light capabilities and product information display; and an API that helps retailers provide automatic, real-time alerts to associates when items are running low or out of stock.
In addition, the company offers the Instacart Ads self-serve ad service, which brands and agencies can use to purchase search ads, set goals and advertising budgets, and manage bidding.
Instacart’s plans for Wynshop
Wynshop will initially operate as a wholly-owned subsidiary of Instacart. Over time, Instacart expects to expand more of its enterprise technology solutions to Wynshop's partners, including its e-commerce, advertising, fulfillment, and in-store solutions.
"We're incredibly proud of what we've built at Wynshop," said Neil Moses, CEO of Wynshop. "We've helped some of the industry's leading grocers elevate their e-commerce capabilities and better serve their customers. Joining Instacart gives us the opportunity to scale our impact and accelerate innovation with a partner that shares our commitment to helping retailers succeed in an increasingly omnichannel grocery landscape."
The purchase price of Wynshop has not been publicly released.
