Instacart acquires shelf intelligence tech provider Arpalus
Instacart is enhancing its artificial intelligence capabilities for internal use as well as for clients.
The grocery technology company has acquired Arpalus, a computer vision solutions provider that has developed shelf intelligence technology purpose-built for grocery retail. The Arpalus system performs a quick video scan of a store shelf using computer vision models built specifically for grocery environments, including low or unreliable Wi-Fi, inconsistent lighting, and thousands of visually similar products packed tightly together.
According to Instacart, Arpalus can identify individual items on shelves with more than 95% accuracy on average. The technology runs on any smartphone or camera-equipped device and can guide Instacart shoppers in real time to help ensure every item on the shelf is captured accurately.
Arpalus shelf intelligence is now part of the proprietary AI-based technology system Instacart uses to support its network of 600,000 shoppers that fill its orders. In addition, Instacart will equip its Caper Carts smart carts that use external cameras to update in-store on-shelf inventory in real time.
[READ MORE: Instacart partners with Nvidia to turn smart carts into edge AI devices]
Instacart expects Arpalus technology to drive more fulfillment efficiencies while improving inventory accuracy for retailers and brands. Data will be used in accordance with all applicable laws including privacy laws, and contractual requirements.
"We believe the future of grocery retail is a unified experience powered by Instacart intelligence, where what happens in store connects seamlessly to ecommerce in real time," said David McIntosh, chief connected stores officer at Instacart. "The Arpalus team has spent years building exceptional shelf intelligence technology, solving the problem of understanding what's actually on store shelves, at any given moment."
Instacart has been launching a wide variety of enterprise solutions for use by its retail partners since 2022, when the company introduced a tech-focused 10-year plan. For grocery retailers, Instacart said it will provide the latest innovations and insights in e-commerce, fulfillment, in-store and advertising to enable them to build the “store of the future.”
"Arpalus was founded to solve one of retail's most fundamental challenges: bridging the gap between what happens in-store and the decisions driving business performance," said Ofir Zilberberg, founder and CEO of Arpalus. "We built an AI platform that gives retailers real-time visibility into inventory and store execution, enabling faster and smarter decisions at scale. Joining Instacart is a transformative milestone. By combining Arpalus' AI innovation with Instacart's scale and retail reach, we are accelerating the future of intelligent retail and redefining how stores operate."
Terms of the purchase were not disclosed.
