Q3 2025 Maplebear Inc Earnings Call

Time, all participants are in a listen only mode.

Rebecca Yoshiyama: In addition, we will also discuss certain non-GAAP financial measures, which have limitations and should not be considered in isolation from or as a substitute for our GAAP results. A reconciliation between these GAAP and non-GAAP financial measures is included in our shareholder letter, which can be found on our Investor Relations website. Now, I'll turn the call over to Chris for his opening remarks.

After the speaker's presentation, there will be a question and answer session.

To ask a question. During this session you would need to press star one on your telephone you were.

Didn't hear an automated message abides in your hand, just raised and we ask to please limit yourself to one question. One follow up so that we will have enough time to address everyone's questions and to withdraw. Your question. Please press star. One again, please be advised that today's conference is being recorded I would now like.

Chris Rogers: Thank you, Rebecca. Good morning, everybody. It's great to be here as my first call as CEO, and I appreciate you taking the time to join us. Over the past six years, I've had the privilege to build many of the capabilities and partnerships that make Instacart so distinct. That experience gives me a unique perspective on our business, where we are today, what makes Instacart truly differentiated, and why I'm so confident in our ability to extend our lead and win in this market. Our business is operating from a position of real strength. We have the leading online grocery marketplace, a best-in-class suite of enterprise technologies for retailers, and a growing advertising ecosystem that all work better together, and have helped us complete more than 1.5 billion lifetime orders. We're also unlocking new growth opportunities that build on that powerful foundation.

To turn the conference over to Rebecca Yoshi, AMA, Vice President of Investor Relations capital markets and Treasury. Please go ahead.

Speaker #1: Ladies and gentlemen, thank you for standing by. Welcome to Instacart's third quarter 2025 financial results conference call. At this time, all participants are in a listen-only mode.

Thank you Michelle and welcome everyone to instead of course third quarter 2025 earnings call on the call with me today are Chris Rogers, Our Chief Executive Officer, and Emily Reuter, Our Chief Financial Officer. During today's call. We will make forward looking statements related to our business plan and strategy development in the grocery industry and of our future performance and prospects.

Speaker #1: After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you would need to press star 11 on your telephone; you will then hear an automated message advising your hand is raised.

<unk>, our expectations regarding our financial results and share repurchases.

Speaker #1: And we ask that please limit yourself to one question, one follow-up, so that we will have enough time to address everyone's questions. And to withdraw your question, please press star 11 again.

Chris Rogers: I'll start by discussing our marketplace, which continues to make up the majority of our business and serves as the backbone of our platform. We've built the best end-to-end online grocery marketplace in North America by staying focused on what matters to customers: great selection, high quality, affordable prices, and the kind of experience that makes everyday life easier. Every quarter, we build on those strengths, expanding how people use our service, improving delivery speed and reliability, and making shopping even more seamless across every touchpoint. Because of that focus, we've built a growing and loyal customer base. We're attracting new customers to Instacart. We're retaining customers at higher rates year over year, and increasing their order frequency, moving more customers from occasional use to regular monthly and weekly shopping.

These forward looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated you can find more information about these risks and uncertainties in our SEC filings, including our last Form 10-Q.

Speaker #1: Please be advised that today's conference is being recorded. I would now like to turn the conference over to Rebecca Yoshiyama, Vice President of Investor Relations, Capital Markets, and Treasury.

We have no obligation to update these statements after today's call except as required by law.

In addition, we will also discuss certain non-GAAP financial measures, which had limitations and should not be considered in isolation from or as a substitute for our GAAP results.

Speaker #1: Please go ahead.

Speaker #2: Thank you, Michelle, and welcome everyone to Instacart's third quarter 2025 earnings call. On the call with me today are Chris Rogers, our Chief Executive Officer, and Emily Reuter, our Chief Financial Officer.

A reconciliation between these GAAP and non-GAAP financial measures is included in our shareholder letter, which can be found on our Investor Relations website.

Speaker #2: During today's call, we will make forward-looking statements related to our business plans and strategy, developments in the grocery industry, and our future performance and prospects, including our expectations regarding our financial results and share purchases.

Now I'll turn the call over to Chris for his opening remarks. Thank you Rebecca and good morning, everybody. It's great to be here as my first call as CEO and I. Appreciate you taking the time to join us over the past six years I've had the privilege to privilege to build many of the capabilities and partnerships that make us to card. So distinct that experience gives me a unique perspective on our business where we are.

Chris Rogers: What we see is the longer that customers stay with us, the more frequently they shop, and the more that they spend across multiple vectors through even larger grocery baskets, more top-off orders, and additional use cases like other retail categories and restaurants. Our most active customers, our Instacart Plus members, also continue to grow in number and deepen their engagement. All of this gives us confidence that our strategy is working and that it shows that demand for our service remains strong. All of this growth continues to add to our scale, and that scale makes us more efficient and more profitable over time. To put a finer point on this, our unit economics are positive and continue to strengthen across all basket sizes. We achieve this by relentlessly improving our technology through things like routing, batching, and replacements to make orders faster and more accurate.

Speaker #2: These forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. You can find more information about these risks and uncertainties in our SEC filings, including our last Form 10Q.

Today, well it makes sense to card truly differentiate it and why I'm, so confident in our ability to extend our lead and win in this market.

Speaker #2: We assume no obligation to update these statements after today's call, except as required by law. In addition, we will also discuss certain non-GAAP financial measures, which have limitations and should not be considered in isolation from or as a substitute for our GAAP results.

Our business is operating from a position of real strength, we have the leading online grocery marketplace a best in class suite of enterprise technologies for retailers and our growing advertising ecosystem that all work better together and have helped us complete more than $1 5 billion lifetime orders were also unlocking new growth opportunities that build on that powerful foundation.

Speaker #2: A reconciliation between these gap and non-gap financial measures is included in our shareholder letter, which can be found on our Investor Relations website. Now, I'll turn the call over to Chris for his opening remarks.

I'll start by discussing our marketplace, which continues to be make up the majority of our business and serves as the backbone of our platform. We built the best end to end online grocery marketplace in North America by being focused on what matters to customers great selection high quality affordable prices and the kind of experience that makes everyday life easier every quarter.

Speaker #3: Thank you, Rebecca. Good morning, everybody. It's great to be here as my first call CEO, and I appreciate you taking the time to join us.

Chris Rogers: That creates a flywheel: better earning opportunities for shoppers, better experiences for customers, and a lower cost to serve for us. That, in turn, allows us to reinvest to make the service more affordable, and to spend more on marketing to acquire and engage customers while staying disciplined within our guardrails. Our marketplace is healthy and growing. We do what nobody else does. We take all of the innovation, scale, and learnings that we've built on our marketplace, and we put that directly in the hands of retailers through our enterprise platform. That's what truly differentiates Instacart. We are not just a marketplace. We are a technology and enablement partner for the grocery industry. Through our enterprise platform, our technologies empower retailers to win on their owned and operated sites, and in their physical stores.

Speaker #3: Over the past six years, I've had the privilege to build many of the capabilities and partnerships that make Instacart so distinct. That experience gives me a unique perspective on our business, where we are today, what makes Instacart truly differentiated, and why I'm so confident in our ability to extend our lead and win in this market.

We build on those strengths expanding how people use our service improving delivery speed and reliability and making shopping shopping even more seamless across every touch point.

Speaker #3: Our business is operating from a position of real strength. We have the leading online grocery marketplace, a best-in-class suite of enterprise technologies for retailers, and a growing advertising ecosystem that all work better together and have helped us complete more than $1.5 billion lifetime orders.

Because of that focus we built a growing and loyal customer base.

Tracking new customers to <unk>, we are retaining customers at higher rates year over year, and increasing their order frequency moving more customers from occasional use to regular monthly and weekly shopping.

Speaker #3: We're also unlocking new growth opportunities that build on that powerful foundation. I'll start by discussing our marketplace, which continues to be make up the majority of our business and serves as the backbone of our platform.

And what we see is the longer the customers stay with us the more frequently they shop and the more that they spend across multiple vectors through even larger grocery baskets more top off orders and additional use cases like other retail categories and restaurants.

Speaker #3: We've built the best end-to-end online grocery marketplace in North America by staying focused on what matters to customers. Great selection, high quality, affordable prices, and the kind of experience that makes everyday life easier.

Chris Rogers: I want to spend a few minutes on this today because it is a key growth driver for us, and honestly, it's one of the most underappreciated parts of our business. Our enterprise platform is built around five key pillars. First, our storefront, or white-label e-commerce technologies, now powers more than 350 retailer e-commerce storefronts on retailers' own websites, from large retailers like Costco, Publix, and Sprouts, to specialty stores and local independents. Grocery tech is very complex, and every retailer is unique in how they operate and how they serve customers, which is exactly why this matters. We've built the best grocery-specific platform that can handle that complexity at scale and make it simple for retailers to grow online with us.

Our most active customers our CCAR plus members also continue to grow in number and deepen their engagement all of this gives us confidence that our strategy is working and that it shows that demand for our services remains strong.

Speaker #3: Every quarter, we build on those strengths, expanding how people use our service, improving delivery speed and reliability, and making shopping even more seamless across every touchpoint.

And all of this growth continues to add to our scale and that scale makes us more efficient and more profitable over time to put a finer point on this our unit economics are positive and continue to strengthen across all basket sizes. We achieved this by relentlessly improving our technology through things like routing and batching and <unk>.

Speaker #3: Because of that focus, we've built a growing and loyal customer base. We're attracting new customers to Instacart. We're retaining customers at higher rates year over year, and increasing their order frequency, moving more customers from occasional use to regular monthly and weekly shopping.

Placements to make orders faster and more accurate.

Speaker #3: And what we see is the longer that customers stay with us, the more frequently they shop, and the more that they spend across multiple vectors, through even larger grocery baskets, more top-off orders, and additional use cases like other retail categories and restaurants.

Chris Rogers: Second, we offer highly versatile and high-quality fulfillment services, where we enable the picking and packing and delivery for retailers like Kroger, Wegmans, and other retailers like ALDI and Sprouts, put our picking technology directly in the hands of their employees. Our partners use our best-in-class technology and our flexible labor network to serve their customers more efficiently. Third is our Carrot Ads technology, which brings all of our advertising formats, our tools, our capabilities that we've built on the Instacart marketplace, as well as all of the advertising demand from the more than 7,500 brand partners, and uses that to power ads on more than 240 partner websites. That includes major retailers like Sprouts and Hy-Vee, as well as other marketplaces like Uber Eats, grocery and retail in the US, Thrive Market, and more.

It creates a flywheel better earning opportunities for shoppers better experiences for customers and a lower cost to serve for us.

That in turn allows us to reinvest to make the service more affordable and to spend more on marketing to acquire and engage customers, while staying disciplined within our guardrails.

Speaker #3: Our most active customers are Instacart Plus members, also continuing to grow in number and deepen their engagement. All of this gives us confidence that our strategy is working and that it shows that demand for our service remains strong.

So our marketplace is healthy and growing and then we do with nobody else does we take all of the innovation and scale and learnings that we've built on our marketplace and we put that directly in the hands of retailers through our enterprise platform.

Speaker #3: And all of this growth continues to add to our scale. And that scale makes us more efficient and more profitable over time. To put a finer point on this, our unit economics are positive and continue to strengthen across all basket sizes.

What truly differentiates since to occur we are not just a marketplace. We are a technology and enablement partner for the grocery industry through our enterprise platform, our technologies empower retailers to win on their owned and operated sites and in their physical stores.

I want to spend a few minutes on this today because it is a key growth driver for us and honestly, it's one of the most underappreciated parts of our business.

Chris Rogers: Fourth, our in-store technology brings the power of our data, technology, and innovation into the physical grocery store, where most shopping still happens. We're doing this with our Caper Carts, which will soon be available in nearly 20% of Wakefern stores, as well as with retailers including Kroger, Sprouts, and Wegmans. In addition, FoodStorm, which provides retailers with technology to digitize the perimeter aisles of their stores, like the deli, bakery, and prepared foods, continues to build momentum with retailers like Ahold Delhaize, Sprouts, and The Fresh Market. Finally, our newest pillar, AI Solutions. Just last week, we launched a suite of AI products that will help retailers use generative and agentic AI to gain a real competitive advantage across online store shelves, smart carts, and more. Every single retailer that I've talked to so far has been highly interested in partnering with us on AI.

Our enterprise platform is built around five key pillars first our storefront or white label E. Commerce technologies now powers more than 350 retailer e-commerce storefront on retailers' own websites from large retailers like Costco publics and sprouts, two specialty stores and local independents.

Grocery Tech is very complex and every retailer is unique in how they operate and how they serve customers, which is exactly why this matters. We've built the best grocery specific platform that can handle that complexity at scale and make it simple for retailers to grow online with us.

Second we offer highly versatile and high quality fulfillment services, where we enable the picking and packing and delivery for retailers like Kroger and wegmans and other retailers like all the <unk> put our picking technology directly in the hands of their employees.

Chris Rogers: They already see us as their grocery technology partner, and these tools come at the exact moment that retailers need us most, as AI transforms how people shop for groceries and feed their families. That's our enterprise platform. It's designed to help retailers of all sizes compete and grow by powering every aspect of their digital strategy. It's built on the same innovation, scale, and learning that come from running North America's largest online grocery marketplace. That gives retailers a clear advantage. They get access to world-class technology and engineering resources that would be impossible to build at the same quality, pace, or price. Retailers can customize their approach, picking and choosing products to solve their specific goals and needs, while also benefiting from the simplicity of integrating with a single trusted technology partner. Our enterprise platform is also a highly strategic growth lever for Instacart.

Our partners to use our best in class technology, and our flexible Labour network to serve their customers more efficiently.

Third is our carrot adds technology, which brings all of our advertising formats are tools or capabilities that we built on the <unk> marketplace.

As well as all of the advertising demand from the more than 7500 brand partners and uses that to power add on more than 240 partner websites that includes major retailers like sprouts, and IV as well as other marketplace like Uber eats grocery and retail in the us thrive market and more.

Fourth our in store technology brings the power of our data technology and innovation into the physical grocery store, where most shopping still happens we're doing this with our keep our cards, which will soon be available in nearly 20% of wafer in stores as well as with retailers, including Kroger and sprouts and wegmans.

Chris Rogers: Each time we land a new enterprise solution with a retailer, we get access to a growing and durable part of their business, and we have the opportunity to expand from there. Because the market is still so underpenetrated, we have years of runway ahead of us to deepen these relationships and layer on additional solutions. These enterprise relationships make us a true technology enablement partner, deeply embedded in retailers' operations to drive durable, long-term growth together. The benefits are self-reinforcing. Every innovation that we build at scale on enterprise strengthens our marketplace, and vice versa. As you'll see in my shareholder letter, we shared a chart that clearly illustrates the power of our enterprise platform and why exclusivity isn't critical to our strategy. When we partner deeply with retailers across both the marketplace and the enterprise platform, we grow faster together.

In addition, food storm, which provides retailers with technology to digital digitize the perimeter.

Their stores like the Deli and bakery and prepared foods continues to build momentum with retailers like Apple Delhaize sprouts and fresh market.

Finally, our newest pillar AI solutions, just last week, we launched a suite of AI products that will help retailers use generative and <unk> to gain a real competitive advantage across online store shelves smartcards and more.

Every single retailer kind of talk to you. So far has been highly interested in partnering with us on AI, they already see us as their grocery technology partner in these tools come at the exact moment that retailers need us most that's AI transforms how people shop for groceries and feed their families.

As well as all the advertising demand from the more than 7,500 brand partners and uses that to power adds on more than 240 partner. Websites that includes major retailers, like, sprouts and Ivy, as well as other Marketplace, like Uber Eats Grocery and Retail in the US Thrive market and more

That's our enterprise platform is designed to help retailers of all sizes compete and grow by powering every aspect of their digital strategy. That's built on the same innovation scale and learning that come from running North America's largest online grocery marketplace.

Chris Rogers: That's why we're not concerned when a retailer like Kroger works with other marketplaces. What matters is the depth of our relationships. Kroger announced last week that they're doubling down with us as their primary delivery fulfillment partner across all of their digital properties. That's a great example, a strong vote of confidence in the value that we bring. Moving on to advertising, our advertising ecosystem enhances our entire platform. When brands advertise with us, they get access to over 1,800 retail banners on our marketplace, more than 240 partner websites through Carrot Ads, dynamic in-store advertising capabilities, and increasingly valuable off-platform insights that help them drive performance across other channels. This has been a foundational year for our advertising capabilities. On our platform, we've added new formats unique to the digital aisle list world, including occasions, recipes, and bundles.

Forth. Our in-store technology brings the power of our data technology and Innovation into the physical grocery store where most shopping still happens. We're doing this with our Caper cards, which will soon be available in nearly 20% of wake for in stores, as well as with retailers, including Kroger and sprouts and Wegmans.

That gives retailers a clear advantage they get access to world class technology, and engineering resources that would be impossible to build at the same quality pace of price and retailers can customize their approach picking and choosing products to solve their specific pools. It needs. While also benefiting from the simplicity of integrating with a single trusted technology partner.

In addition food. Storms, which provides retailers with technology to digit digitize, the perimeter files of their stores like the deli and bakery and prepared foods continues to build momentum with retailers like apple delhi's Sprouts in The Fresh Market.

Finally, our newest pillar AI Solutions. Just last week, we launched a suite of AI products that will help retailers use generative, and agentic AI to gain a real competitive Advantage, across online store shelves, smart, carts, and more.

Our enterprise platform is also a highly strategic growth lever for instant card. Each time, we landed new enterprise solution with a retailer we get access to a growing and durable part of their business and we have the opportunity to expand from there and because the market is still so underpenetrated. We have years of runway ahead of us to deepen these relationships.

See us as their grocery technology partner and these tools come at the exact moment that retailers need us, most, that's AI transforms. How people shop for groceries and feed their families.

That's our Enterprise platform.

Chris Rogers: We've added AI tools like AI-generated landing pages, one-click recommendations, and universal campaigns that make it easier and more effective for brands, especially emerging ones, to advertise with us. All of this has helped us diversify our advertising base and deepen our partnership with more than 7,500 brands. We're proud that across those brands, we're driving real results. On average, our brand partners see a 25% boost in sales when they advertise on Instacart, translating into measurable growth and higher revenue. We've also expanded our supply with more Carrot Ads partners, entirely new in-store services on Caper Carts, and we've established off-platform partnerships with TikTok, Pinterest, Google, Meta, the Trade Desk, and more. These partnerships allow us to help brands optimize their campaigns using the power of our data.

Here on additional solutions.

These enterprise relationships make us a true technology enablement partner deeply embedded and retailers operations to drive durable long term growth together and the benefits are self reported reinforcing every innovation that we build on our scale and enterprise strengthens our marketplace and vice versa.

It's designed to help retailers of all sizes compete and grow by powering every aspect of their digital strategy. It's built on the same innovation scale and learning that come from running North America's largest online grocery marketplace.

That gives retailers a clear Advantage. They get access to world-class Technology and Engineering resources. That would be impossible to build at the same quality Pace or price.

As you'll see in my shareholder letter, we shared a chart that clearly illustrates the power of our enterprise platform and why exclusivity isn't critical to our strategy.

At retailers can customize their approach picking, and choosing products to solve their specific goals and needs while also benefiting from the Simplicity of integrating with a single trusted technology partner.

When we partner deeply with retailers across across both the marketplace and the enterprise platform, we grow faster together, that's why we're not concerned when a retailer like Kroger works with other marketplaces, what matters is the depth of our relationships Kroger announced last week that they are doubling down with us as their primary delivery fulfillment partner across all of their digital properties. That's a great example.

Chris Rogers: Last but not least, we also launched the Consumer Insights portal to give subscribers another tool to help them make strategic decisions based on our rich data. All of this lays the foundation for a powerful ads and data ecosystem that's delivered over $1 billion of ads and other revenue over the past 12 months. Now, while it's not an easy operating environment for many food and beverage CPGs right now, we're confident that by improving our offering, expanding our reach, and continuing to diversify our advertising partners, we're positioned well to meaningfully grow our advertising platform over time. When you think about the power of our platform and you really see us as a grocery technology enablement company, you can fully appreciate how scalable our core advantages are, and you can imagine the growth opportunities that open up for us in new categories and regions.

Ample a strong vote of confidence in the value that we bring.

Our Enterprise platform is also a highly strategic growth lever for instacart each time, we land a new Enterprise solution with a retailer. We get access to a growing and durable part of their business and we have the opportunity to expand from there. And because the market is still. So under penetrated, we have years of Runway ahead of us to deepen, these relationships and layer on additional Solutions.

Moving on to advertising, our advertising ecosystem enhances our entire platform when brands advertise with us they get access to over 800 retail banners on our marketplace more than 240 partner websites through caridad dynamic in store advertising capabilities and increasingly valuable off platform insights that help them drive performance across other channels.

These Enterprise relationships, make us a true technology, enablement partner, deeply embedded in retailers operations to drive durable. Long-term growth together and the benefits are self-report reinforcing every in Innovation that we build on at scale on Enterprise strengthens our Marketplace and vice versa,

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This has been a foundational year for advertising capabilities on our platform. We've added new formats unique digital ILS world, including occasions, and recipes and bundles. We've added AI tools like AI generated landing pages, one click recommendations and universal campaigns that make it easier and more effective for brands, especially emerging ones.

As you'll see in my shareholder letter, we shared a chart that clearly in illustrates the power of our Enterprise platform and why exclusivity is in critical to our strategy.

Advertise with us.

Chris Rogers: Let me give you a couple of examples of what I mean by this. Our capabilities extend beyond individual customers to businesses, and from grocers to B2B distributors. Over the past few years, we've built a suite of products tailored to business needs, including features like invoicing and will-call delivery, where we leverage our shopper network to complete urgent fill-in orders from a distributor's warehouse. Now we're rolling out business features beyond our marketplace to our storefront technology as well, so more retailers can benefit from these capabilities and reach more business customers on their own website. This also means our enterprise products are relevant for partners further up the supply chain. We're partnering with distributors like Gordon Food Service on will-call, and we recently launched Storefront Pro with Restaurant Depot, a wholesale supplier that sells primarily to food service professionals. Another example is international expansion.

And all of this has helped us diversify our advertising base and deepen our partnership with more than 7500 brands and we're proud that across those brands, we're driving real results on average our brand partners see a 25% boost in sales when they advertise on instant card translating into measurable growth in higher revenue.

When we partner deeply with retailers across both the marketplace and the Enterprise platform, we grow faster together. That's why we're not concerned. When a retailer like Kroger works with other marketplaces. What matters is the depth of our relationships Kroger announced last week that they're doubling down with us as their primary delivery fulfillment partner across all of their digital properties. That's a great example, a strong vote of confidence in the value that we bring.

Moving on to advertising our advertising ecosystem, enhances our entire platform, where Brands advertise with us, they get access to over 1800 retail banners on our Marketplace.

We've also expanded our supply with more caridad partners entirely new in store surfaces on keeper cards, and we've established our platform partnerships with Tic Toc and Pinterest as well as Google meta the trade desk and more these partnerships partnerships allow us to help brands optimize their campaigns using the <unk>.

More than 240 partner. Websites through career ads, Dynamic in-store advertising capabilities and increasingly valuable off-platform insights, that help them drive performance across other channels.

However, if our data.

Last but not least we also launched the consumer insights portal that gives subscribers another tool to help them make strategic decisions based on our rich data.

This has been a foundational year for our advertising capabilities on our platform. We've added new formats unique to the digital file. This world, including occasions and recipes and bundles, we've added AI tools, like AI generated landing pages 1-click recommendations and Universal campaigns that make it easier and more effective for Brands, especially emerging ones that advertise with us.

All of this lays the foundation for a powerful ads and data ecosystem that delivered over $1 billion of adds another revenue over the past 12 months.

Chris Rogers: Today, the vast majority of our success is in just North America, but we see tremendous opportunity to grow internationally with an enterprise-led strategy, primarily focused on Storefront, Caper, and FoodStorm. We know that there's demand for our technologies because we've already started to make inroads in Europe and Australia with Storefront and with Caper, and we're in active conversations with more retailers who face the same challenges that we know how to solve. Overall, we are closing out the year with strong fundamentals, and we have multiple growth engines for the future. We're building momentum across our marketplace, enterprise, and ads platform, and we're leveraging this foundation to expand to new categories. This gives us confidence in our ability to drive sustainable growth in the short, medium, and long term, and we're doing this while remaining committed to driving long-term profit and cash flow per share expansion.

While it is not an easy operating environment for many food and beverage Cpg's right now, we're confident that by improving our offering expanding our reach and continuing to diversify our advertising partners, we're positioned well to meaningfully grow our advertising platform over time.

And all of this has helped us diversify our advertising base and deepen our partnership with more than 7,500 brands. We're proud that across those brands, we're driving real results. On average, our brand partners see a 25% boost in sales when they advertise on Instacart, translating into measurable growth and higher revenue.

When you think about the power of our platform and you really see us as a grocery technology enablement company you can fully appreciate how scalable our core advantages are and you can imagine the growth opportunities that open up for us in new categories and regions. Let me give you a couple of examples what I mean by that.

We've also expanded our supply with more care partners and entirely new in-store services on Caper cards.

Established all platform Partnerships with Tik Tok and Pinterest as well as Google meta the trade desk and more. These Partnerships Partnerships allow us to help Brands optimize their campaigns using the power of our data.

Our cable our capabilities extend beyond individual customers to businesses and from grocers to BW distributors over the past few years, we've built a suite of products tailored to business needs, including features like invoicing and will call delivery, where we leverage our shopper network to complete urgent fill in orders from our distributors warehouse and now.

Last but not least, we also launched the consumer insights, portal to give subscribers another tool to help them make strategic decisions based on our Rich data,

Chris Rogers: I'll say this one more time because I think it's so important. We're not just a marketplace. We're the leading technology and enablement partner for the grocery industry, transforming and empowering the entire grocery ecosystem to succeed. We're just getting started, and we believe deeply in the strength of this business and the opportunities ahead. That's why we increased our share repurchase program by $1.5 billion, our largest increase yet, to underscore our confidence and our path forward. We're leading from a position of strength. We're focused on execution, and we're building a company designed to create lasting value for our customers, our partners, and our shareholders. With that, I'm going to hand it over to Emily to walk through our quarterly results. Thank you, Chris. This is an incredibly exciting time for Instacart. We're executing on a robust strategic roadmap supported by a strong financial foundation.

All of this leaves the foundation for a powerful ads and data ecosystem that delivered over $1 billion of ads and other revenue over the past 12 months.

We're rolling out business features beyond our marketplace to our storefront technology as well so more retailers can benefit from these capabilities and reach more businesses business customers on their own website.

This also means our enterprise products are relevant for partners further up the supply chain, we're partnering with distributors like Gordon food services on will call and we've recently launched storefront pro with restaurant depot, a wholesale supplier that sells primarily to foodservice professionals.

Now, while it's not an easy operating environment for many food and beverage CPGs, we're confident that by improving our offering, expanding our reach, and continuing to diversify our advertising partners, we're positioned well to meaningfully grow our advertising platform over time.

Okay.

Another example is international expansion.

When you think about the power of our platform and you really see us as a grocery technology enablement company, you can fully appreciate how scalable our core advantages are and you can imagine the growth opportunities that open up for us in new categories. And regions, let me give you a couple of examples of what I mean by that.

The vast majority of our success isn't just North America, but we see tremendous opportunity to grow international internationally with an enterprise led strategy, primarily focused on storefront paper and food storm.

We know that there is demand for our technologies because we've already started to make inroads in Europe, and Australia with <unk> shop, and with paper and we're in active conversations with more retailers, who face the same challenges that we know how to solve.

Chris Rogers: This enables us to confidently reinvest in the business while continuing to drive more profitable growth over time. Now, let's dive into our financial results and outlook. We delivered another strong quarter in Q3. Orders reached 83.4 million, up 14% year over year, driving GTV of $9.17 billion, up 10% year over year. This performance reflects strong operating fundamentals, fueled by growth in both users and order frequency. As expected, our average order value decreased 4% year over year. This was primarily driven by growth in restaurant orders and introduction of a $10 basket minimum for Instacart Plus members, partially offset by growth in basket sizes elsewhere. Transaction revenue grew 10% year over year and represented 7.3% of GTV, which was flat year over year. This was driven by improved shopper efficiencies and lower consumer incentives, which allowed us to reinvest in affordability initiatives aimed at increasing customer engagement.

Our capable, our capabilities extend beyond individual, customers to businesses. And from jerz to B2B Distributors over the past few years, we've built a suite of products tailored to business needs including features like invoicing and will call delivery where we leverage. Our Shopper Network to complete urgent, fill-in orders from a distributor's warehouse

Overall, we are closing out the year with strong fundamentals and we have multiple growth engines for the future.

and now we're rolling out business features beyond our Marketplace to our storefront technology as well. So more retailers can benefit from these capabilities and reach more businesses business customers on their own website.

We're building momentum across our marketplace enterprise and AD platform and we are leveraging this foundation to expand to new category.

This gives us confidence in our ability to drive sustainable growth in the short medium and long term and we're doing this while remaining committed to driving long term profit and cash flow per share expansion.

Says on will call. We recently launched Storefront Pro with Restaurant Depot, a wholesale supplier that sells primarily to food service professionals.

I'll say this one more time, because I think it's so important.

We're not just a marketplace with a leading technology and enablement partner for the grocery industry, transforming and empowering the entire grocery ecosystem to succeed.

For example is international expansion today. The vast majority of our success is in just North America but we see tremendous opportunity to grow International, uh, internationally within Enterprise Le strategy, primarily focused on storefront, Caper and food storm.

We're just getting started and we believe deeply in the strength of this business and the opportunities ahead. That's why we increased our share repurchase program by one 5 billion, our largest increase yet to underscore our confidence in our path forward.

We know that there's demand for our Technologies because we've already started to make inroads in Europe and Australia with windshield and with Caper, and we're an active conversations with more retailers. Who faced the same challenges that we know how to solve.

Chris Rogers: As a reminder, we manage multiple levers across our P&L, so transaction revenue may fluctuate quarter to quarter as we strategically reinvest in growth. Advertising and other revenue grew 10% year over year, reflecting the strength of our ads platform. Advertising and other revenue represented 2.9% of GTV, which was effectively flat year over year, even as restaurant orders contributed to overall GTV growth while not being advertising addressable. We continue to demonstrate strong financial discipline and operating leverage. GAAP net income was $144 million, up 22% year over year, and adjusted EBITDA also grew 22% year over year to $278 million. We generated operating cash flow of $287 million, which increased by $102 million year over year, primarily driven by strong operational performance. In Q3, we repurchased $67 million worth of shares and ended the quarter with approximately $1.9 billion in cash and similar assets on our balance sheet.

We're leading from a position of strength, we're focused on execution and we're building a company designed to create lasting value for our customers our partners and our shareholders.

Overall, we are closing out the year with strong fundamentals, and we have multiple growth engines for the future.

We're building momentum across our Marketplace and Enterprise and add the platform. And we're leveraging this Foundation to expand to new categories.

With that I'm going to hand, it over to Emily to walk through our quarterly results.

Thank you Chris.

This is an incredibly exciting time for <unk>, we're executing on a robust strategic roadmap supported by a strong financial foundation.

This gives us confidence in our ability to drive sustainable growth in the short, medium, and long term. And we're doing this while remaining committed to driving long-term profit and cash flow per share expansion.

I'll say this 1 more time because I think it's so important.

This enables us to confidently reinvest in the business, while continuing to drive more profitable growth over time.

Now, let's dive into our financial results and outlook.

We delivered another strong quarter in Q3.

We're not just a Marketplace. We're the leading, technology and enablement partner for the grocery industry. Transforming, and empowering the entire grocery ecosystem to to succeed.

Orders reached $83 4 million up 14% year over year.

Diving GTD of $9 $1 7 billion.

Up 10% year over year.

This performance reflects strong operating fundamentals fueled by growth in both users and order frequency.

We're just getting started and we believe deeply in the strength of this business and the opportunities ahead. That's why we increased our share, we purchase program by 1.5 billion. Our largest increase yet to underscore our confidence, and our path forward.

As expected our average order value decreased 4% year over year.

Chris Rogers: Stock-based compensation in Q3 was $82 million, down $24 million quarter over quarter, largely due to just over $20 million in expected reversals tied to executive departures in the period. In Q4, we expect stock-based compensation to normalize and be more in line with Q2 2025 levels. Now, for our Q4 outlook. We anticipate GTV to range between $9.45 to 9.6 billion. This represents year-over-year growth between 9% to 11%, with orders growth expected to outpace GTV growth. It also reflects strong customer demand in October, continued momentum from landing and expanding enterprise partnerships, and is partially offset by the impact of a variety of EBT/SNAP funding scenarios. We expect advertising and other revenue to grow 6% to 9% year over year. This reflects ongoing strength from emerging and mid-sized brands, partially offset by some large partners adjusting spend as they manage macro uncertainty and changing consumer trends.

This was primarily driven by growth in restaurant orders and introduction of a $10 basket minimum for <unk> plus numbers, partially offset by growth in basket size or elsewhere.

We're leading from a position of strength, we're focused on execution, and we're building a company designed to create lasting value for our customers, our partners, and our shareholders.

With that, I'm going to hand it over to Emily to walk through our quarterly results.

Thank you, Chris.

Transaction revenue grew 10% year over year and represented seven 3% of GTD, which was flat year over year. This.

This is an incredibly exciting time for instacart. We're executing on a robust, strategic roadmap supported by a strong financial Foundation.

This was driven by improved shopper efficiencies and lower consumer incentives, which allowed us to reinvest and affordability initiatives aimed at increasing customer engagement.

This enables us to confidently reinvest in the business while continuing to drive more profitable growth over time.

Now, let's dive into our financial results and outlook.

As a reminder, we manage multiple levers across our P&L. So transaction revenue may fluctuate quarter to quarter as we strategically reinvest in growth.

we delivered another strong quarter in Q3

Advertising and other revenue grew 10% every year, reflecting the strength of our ads platform <unk>.

Orders reached 83.4 million up 14% year-over-year driving GTV of 9.17 billion up 10% year-over-year.

Advertising and other revenue represented two 9% of CTV, which was effectively flat year over year, even as restaurant orders contributed to overall GTD growth, while not being advertising addressable.

Performance reflects strong operating fundamentals, fueled by growth in both users and Order frequency.

As expected, our average order value decreased 4% year-over-year.

We continued to demonstrate strong financial discipline and operating leverage.

GAAP net income was $124 million up 22% year over year and adjusted EBITDA also grew 22% year over year to $278 million.

Is primarily driven by growth in restaurant orders and introduction of a 10 basket minimum for instacart Plus members, partially offset by growth in basket sizes, elsewhere.

Chris Rogers: While this creates near-term pressure, the fundamentals of our ads ecosystem remain stronger than ever. With our performance, reach, and diversification, we are confident in returning advertising and other revenue to double-digit growth in 2026 and meaningfully growing this part of our business over time. We are also guiding to Q4 adjusted EBITDA of $285 to $295 million, reflecting our commitment to disciplined execution and steadily increasing profitability. In summary, we delivered a great Q3, and our momentum continues to build as we look to finish 2025 strong. As the clear category leader, operating at tremendous scale and driving efficiencies, we're taking a disciplined but aggressive approach to investing to further accelerate our growth and advance the broader industry. To underscore our confidence in long-term value creation, we authorized a $1.5 billion increase to our share repurchase program, bringing our total capacity to $1.65 billion as of this morning.

We generated operating cash flow of $287 million, which.

Transaction, Revenue grew, 10% year-over-year, and represented 7.3% of GTV, which was flat year-over-year.

Which increased by $102 million year over year, primarily driven by strong operational performance.

Which was driven by improved Shopper efficiencies and lower consumer incentives. Which allowed us to reinvest in affordability initiatives aimed at increasing customer engagement.

In Q3, we repurchased $67 million worth of shares and ended the quarter with approximately $1 9 billion in cash and similar assets on our balance sheet.

As a reminder, we manage multiple levers across our P&L. So, transaction revenue may fluctuate quarter to quarter as we strategically reinvest in growth.

Stock based compensation in Q3 was $82 million.

Around $24 million quarter over quarter, largely due to just over $20 million in expected reversals tied to executive departures in the period.

Advertising and other Revenue, grew 10%, year-over-year reflecting the strength of our ads platform.

In Q4, we expect stock based compensation to normalize and be more in line with Q2 2025 level.

Advertising and other revenue represented 2.9% of GTV, which was effectively flat year-over-year. Even as restaurant orders contributed to overall GTV growth, they were not advertising addressable.

Now for our Q4 outlook.

We continue to demonstrate strong financial discipline and operating leverage.

We anticipate CTV to range between $9 45 to $9 6 billion.

This represents year over year growth between 9% to 11% with orders growth expected to outpace CTD growth.

GAAP net income was $144 million, reflecting a 22% year-over-year increase. Adjusted EBITDA also grew by 22% year-over-year to $278 million.

Chris Rogers: We plan to enter into a $250 million accelerated share repurchase program while continuing to opportunistically repurchase shares. With that, we'll open up the call for live questions. Operator, you may begin. Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. As a reminder, please limit yourself to one question and one follow-up, so that we will have enough time to address everyone's questions. The first question is going to come from Eric Sheridan with Goldman Sachs. Your line is open. Thank you so much for taking the question. Maybe just to dovetail with the comments and all the details in the material so far today.

It also reflects strong customer demand in October continued momentum from landing and expanding enterprise partnerships and is partially offset by the impact of a variety of EBT snap funding scenarios.

We generated operating cash flow of 287 million which increased by 102 million year-over-year primarily driven by strong operational performance.

We expect advertising and other revenue to grow 6% to 9% year over year.

In Q3, we repurchased $67 million worth of shares and ended the quarter with approximately $1.9 billion in cash and similar assets on our balance sheet.

This reflects ongoing strength from emerging and midsized brands, partially offset by some large partners adjusting spend as they manage macro uncertainty and changing consumer trends.

Stock based compensation in Q3 was 82 million down, 24 million quarter over quarter. Largely due to just over 20 million in expected, reversals tied to executive departments in the period.

While this creates near term pressure the fundamentals of our AD ecosystem remains stronger than ever with a performance reached and diversification. We are confident in returning advertising other revenue to double digit growth in 2026 and meaningfully growing this part of our business over time.

In Q4, we expect stock-based compensation to normalize and be more in line with Q2 2025 levels.

Now, for our Q4 Outlook,

Chris Rogers: If you had to isolate what you see as some of the biggest strategic investments you want to make across your technology stack, growing supply, or aggregating demand, how should we think about what those key investments are to build the types of growth narratives you're talking about today? Thank you. Yeah, thank you, Eric, for the question. As you can see from our Q3 results, the business is in good shape. We have momentum. We've been driving consistent growth, seven quarters of double-digit growth with consistent EBITDA expansion. Considering the strength of the core business, I'm not coming in and rewriting our entire playbook or making dramatic changes to our underlying vision and strategy. It's going to be fairly consistent. That said, I have started to outline various focus areas that I strongly believe can help us accelerate into the next chapter. There's three of them.

We are also guiding to Q4, adjusted EBITDA of $285 million to $295 million, reflecting our commitment to disciplined execution and steadily increasing profitability.

We anticipate GTV to range between $9.45 billion to $9.6 billion. This represents year-over-year growth of between 9% to 11%, while orders growth is expected to outpace GTV growth.

In summary, we delivered a great Q3, and our momentum continues to build as we look to finish 2025 shop.

As the clear category leader operating at tremendous scale and driving efficiencies, we're taking a disciplined but aggressive approach to investing to further accelerate our growth and advanced the broader industry.

It also reflects strong customer demand in October, continued momentum from landing and expanding Enterprise Partnerships, and is partially offset by the impact of a variety of EBT and SNAP funding scenarios.

We expect advertising and other Revenue to grow 6 to 9% year-over-year.

To underscore our confidence in long term value creation, we authorized a $1 $5 billion increase to our share repurchase program brings.

Strength from emerging and mid-size Brands. Partially offset by some large Partners adjusting spend, as they manage macaron, certainty and changing consumer trends.

Bringing our total capacity to $1 65 billion as of this morning.

While this creates near-term pressure, the fundamentals of our ads, ecosystem remains stronger than ever.

We plan to enter into a $250 million accelerated share repurchase program, while continuing to opportunistically repurchase shares.

Chris Rogers: One of them is affordability. We know that affordability is the number one reason why people turn off of the platform. We also think it's a barrier to customers placing their first order. We have made some significant traction with some of our largest affordability issues, like loyalty integrations with retailers, the weekly flyer integrations that we have been doing. We do believe that there is more we can do with retailers, including working with retailers on their own pricing strategy, including having conversations about price parity on the platform. The second area you're going to see us continue to invest in is to accelerate enterprise even more. I continue to see significant opportunity to accelerate our enterprise platform based on everything I hear when I talk to retailers.

With our performance reach and diversification. We are confident in returning advertising other Revenue to double-digit growth in 2026 and meaningfully growing, this part of our business over time.

With that we'll open up the call for live questions. Operator, you may begin.

Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced and as a reminder, please limit yourself to one question and one follow up so that we will have enough time to address everyone's questions.

We are also guiding for Q4 adjusted IBAA of $285 million to $295 million, reflecting our commitment to disciplined execution and steadily increasing profitability.

In summary, we delivered a great Q3 and our momentum continues to build as we look to finish 2025 strong.

And the first question is going to come from Eric Sheridan with Goldman Sachs. Your line is open.

As the clear category leader operating at tremendous scale and driving efficiencies, we are taking a disciplined but aggressive approach to investing to further accelerate our growth and advance the broader industry.

Thank you so much for taking the question, maybe just to dovetail with the comments that all the details in the materials. So far today, if you had to isolate what you see as some of the biggest strategic investments you want to make across your technology stack growing supply or aggregating demand how should we think about what those key investments are to build to.

To underscore our confidence in long-term value creation, we authorize a $1.5 billion increase to our share repurchase program.

Chris Rogers: Even though we're already over 350 e-commerce storefronts, there is more room here for us to sign and launch a lot more retailers across North America. I also see this opportunity to expand outside of North America for the first time in a real way. Once we've landed with a retail partner, there's an opportunity for us to cross-sell with other partners, like with Caper Carts and with FoodStorm. The final area that I want to highlight is ads and data. Our ads business is very strong and highly performant, and I plan to continue to invest to build an ads ecosystem that really innovates on platform with our high-performing and strong measurement off platform through partnerships with Google, Meta, the Trade Desk, and now Pinterest and TikTok, and then, of course, with Carrot Ads, where we're now powering 240 ad partners.

Bringing our total capacity to 1.65 billion as of this morning.

<unk> growth narrowed as Youre talking about today. Thank you.

We plan to enter into a 250 million accelerated, share repurchase program while continuing to opportunistically repurchase shares.

Yeah. Thank you Eric for the question.

With that, we'll open up the call for live questions. Operator, you may begin.

As you can see from our Q3 results. The business is in good shape, we have momentum we've been driving consistent growth seven quarters of double digit growth with consistent EBITDA expansion. So.

And the strength of the core business Im not coming in and rewriting our entire playbook are making dramatic changes to our underlying vision and strategy, it's going to be fairly consistent that said I have started to outline various focus areas that I strongly believe can help us accelerate into the next chapter.

Thank you as a reminder, to ask a question. Please press star, 1, 1 1 on your telephone, and wait for your name to be announced. And as a reminder, please limit yourself to 1 question and 1 follow up so that we will have enough time to address everyone's questions.

Three of them one of them is affordability.

We know that affordability is the number one reason why people churn off the platform. We also think it's a barrier to customers, placing their first order. So we've made some significant traction with some of our largest affordability issues like loyalty integrated integrations with retailers.

Chris Rogers: I feel strongly that these are going to accelerate our business. As a tech company operating in the grocery space, we believe that we can do incredible things with AI together, both on our platform and together with our retail partners to accelerate even further. Thank you. Thank you. Our next question will come from Colin Sebastian with Baird. Your line is open. Yeah, thanks, and good morning. I guess two questions, one in a follow-up. On the AI solutions, Chris, I guess how should we think about the monetization model here, and how are you using those deeper relationships to expand the marketplace side where there are an increasing number of options for consumers?

Weekly flier integrations that we've been doing but we do believe that there is more we can do with retailers, including working with retailers on their own pricing strategy, including having conversations about price parity on the platform.

And the first question is going to come from Eric Sheridan with Goldman Sachs. Your line is open. Thank you so much for taking the question. Maybe just to dovetail with the comments and all the details in the materials so far today. If you had to isolate what you see as some of the biggest strategic investments you want to make across your technology stack—growing supply or aggregating demand—how should we think about what those key investments are to build the types of growth narratives you're talking about today? Thank you.

The second area Youre going to see us continue to two <unk>.

Yeah, thank you, Eric, for the question. As you can see from our Q3 results, the business is in good shape. We have momentum. We've been driving consistent growth: seven quarters of double-digit growth with consistent IBA expansion.

Invest in is to accelerate enterprise, even more I.

Continue to see significant opportunity to accelerate our enterprise platform based on everything I hear when I talk to retailers and even though we're already over 350 E. Commerce storefront. There is more room here for us to sign and launch a lot more retailers across North America and I also see this opportunity to expand outside of North America for the first time.

Chris Rogers: In terms of the acceleration you're expecting next year within advertising, Emily, was maybe just hoping for a little more context around how much of that depends on the macro environment versus platform-specific initiatives, and maybe opportunities with partners like TikTok and Uber Eats. Thanks. Yeah, thank you, Colin. For the first part of the question about AI, I mean, it's still early days. We announced our launch last week. Again, I have seen—I have personally experienced that 100% of the retailers that I've spoken to so far are excited about this. We do believe we're on to something. I just think that it's basically going to be a collection of enterprise offerings that brings AI-powered capabilities to our retail partners, all of our retail partners, regardless of size.

So, you know, considering the strength of the core business, I'm not coming in and rewriting our entire playbook or making dramatic changes to our underlying vision and strategy. It's going to be fairly consistent. That said, I have started to outline various focus areas that I strongly believe can help us accelerate into the next chapter.

In a real way.

And once we've landed with a retail partner there is an opportunity for us to cross sell with other partners like with keep our cards and with food storm.

And the final area.

I want to highlight is ads and data our ads business is very strong and highly performance and I plan to continue to invest to build on.

Its ecosystem that really innovate on platform with our high performing and strong measurement off platform through partnerships with Google and meta and the trade desk and now Pinterest and Tic Toc and then of course with Teradata, where we're now powering 240 odd partners. So I feel strongly that these are going to accelerate our business and then as a tech company.

Uh, there's three of them; one of them is affordability. We know that affordability is the number one reason why people turn off of the platform. We also think it's a barrier to customers placing their first order. So, we've made some significant traction with some of our largest affordability issues, like loyalty integrations with retailers and the weekly flyer integrations that we've been doing. But we do believe that there's more we can do with retailers, including working with retailers on their own pricing strategy, including having conversations about price parity on the platform.

Chris Rogers: It's going to connect every part of the shopping journey from how products are discovered online to how shelves are stocked in stores. For retailers, and why we believe there's a monetization opportunity for us here, it's because it means things like smarter operations. It means better product visibility with the in-store view that we're creating, and in-store intelligence. It means more personalized shopping experience for their customers. Early days, very promising start out of the gate, and we do believe that this is going to be something we can monetize over time. For the second part of the question on advertising, look, I'll start by saying, given the somewhat challenging macro that we're seeing, we are very proud of our Q3 results of plus 10%, which was in line with our expectation.

Operating in the grocery space, we believe that we can do incredible things with AI together, both on our platform and together with our retail partners to accelerate even further.

Thank you.

Thank you and our next question will come from Colin Sebastian with Baird. Your line is open.

The second area you're going to see us continue to to um invest in is to accelerate Enterprise even more. I continue to see significant opportunity to accelerate our Enterprise platform, based on everything I hear when I talk to retailers. And even though we're already over 350, e-commerce storefronts, there is more room here for us to sign and launch a lot more retailers across North America. And I also see this opportunity to expand outside of North America for the first time in a real way. And once we've landed with a retail partner, There's an opportunity for us to cross sell with other partners like with keeper carts and with foodstorm.

Yes, Thanks, and good morning, I guess I guess two questions wanted to follow up on.

On the AI solutions, Chris I guess, how should we think about the monetization model here and how are you using those deeper relationships to expand the marketplace side, where where there are an increasing number of options for consumers.

And in terms of the acceleration you're expecting next year with an advertising Emily was maybe just hoping for a little more context around how much of that depends on the macro environment versus platform specific initiatives, maybe opportunities with partners like tick tock and Uber eats. Thanks.

And the final area is that, that I want to highlight is ads and data. Our ad business is is very strong and highly performance and I plan to continue to invest to build an ads. Ecosystem that really innovates on platform, with our high performing and and strong measurement off platforms, through Partnerships with Google and meta and the

Chris Rogers: As we think about our guide for Q4, 6% to 9% and over 10% for the full year, we are weighing several puts and takes across our brand partners. On the one hand, we're seeing real ongoing strength from mid-market and emerging brands. We have seen strong growth from this cohort all year. On the other hand, some of our large brand partners are moderating their spend as they navigate a tougher macro environment. In addition, in Q4, we're up against some brands that leaned in heavily towards the end of last year. All of that said, I'm not satisfied with where we're guiding for Q4, and I'm focused on re-accelerating ads and others. I'm confident that we can return to double-digit growth next year, and I'm confident in our ability to achieve our long-term target of 4% to 5% of GTV.

Yes. Thank you calling for the first part of the question about AI.

I mean, it's still early days, we announced our launch last week again, we have seen.

Desk and now Pinterest and Tik Tok. And then of course, with paradigms where we're now, powering 240 ad ad Partners. So I feel strongly that these are going to accelerate our business and then as a tech company operating in the grocery space, we believe that we can do incredible things with AI together, both on our platform and together with our Retail Partners to accelerate even further,

Thank you.

Personally experienced that are 100% of the retailers that I've spoken to so far are excited about that so we do believe we're onto something and.

Thank you. And our next question will come from Colin Sebastian with Bayer. Galien is open.

I just think that is.

Basically going to be a collection of enterprise offerings that bring AI powered capabilities to our retail partners all of our retail partners regardless of size and it is going to connect every part of the shopping journey from Howard products are discovered online to how shelves are stocked in stores and so for retailers.

Chris Rogers: This is because of the foundation that we've been laying over the past year with multiple irons in the fire. I really believe it's a combination of things that are going to get us there. As a starting point, we are consistently innovating on platform, on site, on Instacart, where we can attract larger and larger budgets by innovating, and by being laser-focused on driving performance for brands. We have new formats like the ones I mentioned, shoppable recipes, and bundles, and we're also doing enhanced optimizations, including ad relevance systems with LLMs, driving stronger sponsored product engagement and higher click-through rates. In addition, everything that we're doing on site, we're making significant progress across this ads ecosystem that I referenced. We're up to 240 Carrot Ads partners.

Why we believe there is a monetization opportunity for us here because it means things like smarter operations that means better product visibility with the in store view that we're creating an in store intelligence. It means more personalized shopping experience for their customers. So.

And increasing number of options for consumers and and in terms of the acceleration, You're Expecting next year with an advertising. Emily was maybe just hoping for a little more context around. How much of that depends on the macro environment versus platform specific initiatives and maybe opportunities with Partners like Tik Tok and and Uber Eats. Thanks.

Early days very promising start out of the gate and we do believe that this is going to be something that can monetize over time.

And for the second part of the question on advertising.

Look I'll say.

I'll start by saying given the somewhat challenging macro that we're seeing we are very proud of our Q3 results of plus 10%, which was in line with our expectation and as we think about our guide for Q4 of 6% to 9% that over 10% for the full year. We are waiting several puts and takes across our brand partner. So on the one hand, we're seeing real ongoing.

Chris Rogers: Again, that's where we power ad tech on our retailer websites like Hy-Vee, who recently launched, and on third-party marketplaces like Uber, grocery, and retail in the US. We've also signed Room Delivery, which is a convenience marketplace, and we just signed Bottlecaps, which is an alcohol marketplace. We have a robust pipeline of other potential partners, which we think can contribute to long-term growth. We also recently launched ads on our Caper Carts with Wakefern, where carts will soon be deployed at 20% of their stores. We're also just very pleased with our off-platform partnerships. This is a foundational year for us on our off-platform with our newest partners, Pinterest, which we announced in Q2, and then TikTok in Q3, where we're the first end-to-end retail media partner to enable targeting and closed-loop measurement.

For mid market and emerging brands.

We have seen strong growth from this cohort all year and then on the other hand, some of our large brand partners are moderating their spend as they navigate a tougher macro environment. In addition in Q4 were up against some brands that leaned in heavily towards at the end of last year all of that said I'm not satisfied with where we are guiding for Q4 and I am focused on re accelerating adds another <unk> <unk>.

Yeah. Thank you Colin um for the first part of the question about AI, um I mean it's still early days we announced our our launch last week. Again we have seen I have personally experienced that 100% of the retailers that I've spoken to so far, are excited about this. So we do believe we're on to something and you, you know, I I just think that it's it's basically going to be a collection of Enterprise offerings. That brings AI power capabilities to our Retail Partners, all of our Retail Partners, regardless of size and it's going to connect every part of the shopping Journey from how products are discovered online to how shells are stocked in stores. And so for retailers, uh, and why we believe there's a monetization opportunity for us here, because it means things like, smarter operations, it means better product visibility with the in-store view that we're creating and in store intelligence, it means more personalized shopping experience for their customers. So we, you know, early days, very promising, start out of the gate and we do believe that this is going to be something we can.

Sometimes over time.

Absent that we can return to double digit growth next year and I am confident in our ability to achieve our long term target of 4% to 5% of GDP.

Chris Rogers: When you stack all of these pieces together, combining our high performance on our platform and then extending that high performance onto all of this new supply, we see real growth opportunity over the long term. Thanks, Chris. The next question will come from Shweta Khajuria with Wolfe Research. Your line is open. Thank you for taking my questions. Let me try two, please. One for Chris and one for Emily. The new partnerships, as well as international growth plans, can you please talk to both of those? One is how impactful do you think that the new partnerships can be in the near to midterm, as well as where are you focused on for international growth, and what is your go-to-market strategy versus how should we be thinking about your plans for near to midterm?

And this is because of the foundation that we've been laying over the past year with multiple irons in the fire and I really believe it is a combination of things that are going to get us there on the starting point.

We are consistently innovating on platform onsite, an instance, where we can attract larger and larger budgets by innovating and by being laser focused on driving performance for brand.

New formats like the ones I mentioned shuffle recipes and bundles, but we're also getting enhanced optimizations, including.

I'd relevance systems with Llm's, driving stronger sponsored product engagement and higher click through rates.

But in addition to everything that we're doing on site, we are making significant progress across the AD ecosystem that I referenced where up to 240 carried out partners again, Thats, where we power AD tech on our retailer websites like Hy Vee, who recently launched and on third party marketplaces, like Uber grocery and retail in the U S. But we've also signed broom delivery, which.

And for the second part of the question on Advertising. Um look I I'll say I'll start by saying you know, given the somewhat challenging macro that we're seeing. We are very proud of our Q3 results of plus 10% which was in line with our expectation. And as we think about our guide for Q4 69 it's over 10% for the full year. We are waiting several puts and takes across our brand Partners. So on the 1 hand we're seeing real ongoing strength for a mid-market in emerging Brands. You know, we we have seen strong growth from this cohort, all year, and then on the other hand, some of our large brand partners are moderating their spend, as they navigate a tougher macro environment. In addition, in Q4, we're up against some brands that leaned in heavily, towards the end of last year, all of that said yeah, I'm not satisfied with where. We're guiding for key 4 and I'm focused on reaxis and other. I'm confident that we can return to double digit growth next year. And I'm confident in our ability to achieve our long-term Target of 4 to 5% of GTP.

As a convenience marketplace and we just signed bottle caps, which is an alcohol marketplace and we have a robust pipeline of other potential partners, which we think can contribute to long term growth.

Chris Rogers: Finally, the guidance for the fourth quarter, could you please provide a little bit more color in terms of framing the impact of potential EBT/SNAP headwinds versus the incrementality of enterprise, and the ongoing strength and order growth? Thanks a lot. Thank you for the question. On new partnerships, look, we see potential in so many of our partnerships across the broader business. If you're asking about enterprise specifically, we have, again, 350 storefronts, but we continue to launch more storefronts. We launched 40 new storefronts in the first half alone. We just launched Restaurant Depot, which is our first wholesaler that supplies food service. We just launched Cub last week, another retailer. We do believe that this is a very important part of our strategy, and you're going to see us continue to lean into this.

We also recently launched.

Our keeper carts with weak firm, where cards will soon be deployed at 20% of their stores and we're also just very pleased with our off platform partnerships. This is a foundational year for us on our platform with our newest partner partners Pinterest, which we announced in Q2 and then ticked off in Q3, where we're the first end to end retail media partner to enable targeting and closely measurement.

And this is because of the foundation that we've been laying over the past year with multiple irons in the fire and I really believe it's a combination of things that are going to get us there as a starting point. You know, we are, we are consistently innovating on platform, on-site on instacart where we can attract larger and larger budgets by innovating. And by being laser focused on driving performance for brands that we have new formats, like the ones I mentioned shoppable recipes and and bundles, but we're also doing enhanced optimizations in.

Including relevant systems, with LLMs driving stronger sponsored product engagement and higher click-through rates.

No.

When you stack all of these pieces together.

But in addition to everything that we're doing on-site, we're making significant progress across this ads ecosystem that I referenced.

Combining our high performance on our platform and then extending that high performance onto all of this new supply, we see real growth opportunity over the long term.

Thanks, Chris.

Okay.

And the next question will come from <unk> <unk> with Wolfe Research. Your line is open.

We're up to 240. Karat ads Partners again, that's where we power adtech on our retailer websites like High V who recently launched and on third-party marketplaces, like uber Grocery and Retail in the US. But we've also signed room delivery, which is a convenience Marketplace and we just signed bottle caps, which is an alcohol Marketplace.

Chris Rogers: Our partnerships on the ad fronts with off-platform are also going to be critical. This was a foundational year where we struck many partnerships, and we're working through integrations and what our go-to-market motion is going to look like as we talk to brand advertisers about those capabilities. When it comes to international, first of all, I want to say I'm very excited about our plan to take our technology to new markets. We have already spent some time in other countries. We've spoken to retailers, and they're trying to solve the same problems as the retailers that I talked to in North America: how to build scalable e-commerce solutions, ads, and in-store digital solutions for customers.

And we have a robust pipeline of other potential Partners, which we think can contribute to long-term growth,

Okay. Thank you for taking my questions.

Let me try two please one for Chris.

And when family.

New partnerships.

As well as international growth plans can you can you. Please talk to both of those one is how.

Impactful do you think the new partnerships can be in the near to midterm as well as where are you focused on for international growth and what are your go to market strategy versus how should we be thinking about.

We also recently launched ads on our Caper cards with Wakefern, where our cards will soon be deployed at 20% of their stores. And we're also just very pleased with our off platform Partnerships. This is a foundational year for us on our off platform with our newest partner Partners Pinterest, which we announced in Q2 and then Tik, Tok, and Q3 where we're the first end-to-end retail media partner to enable targeting and closed loop measurements. So,

You have plans for near to midterm and then finally the guidance for the fourth quarter could you. Please provide a little bit more color in terms of framing the impact of potential EBIT snap headwinds versus the incrementals idea of enterprise.

Chris Rogers: That said, while I believe that this is going to be a very promising growth lever for us, I'm also focused on ensuring that we're disciplined on expenses and the way that we do this in a way that's aligned with our profitability objectives and our ability to deliver to annual EBITDA progression. It is probably worth sharing a little bit more about our approach here. We're exploring the major markets like Europe, but we're doing that with our existing products like Storefront Pro, Caper, and FoodStorm. We're not building a new suite of technology specific to these markets. We will be investing some. There will be resources applied to this effort, obviously, to do the selling and to localize our products. Again, I intend to be super disciplined and extremely focused on how we do that.

when you stack all of these pieces together, you know, combat combining, our high performance on our platform and then extending that high performance onto all of this new Supply. We see real growth opportunity over the long term.

Thanks Chris.

<unk> strengthened order growth thanks, a lot.

And the next question will come from shetta khajuria with wolfrey search your line is open.

Thank you for the question on new partnerships.

Look we see potential in so many of our partnerships across the broader business if youre, if youre asking about enterprise specifically.

We have again 350 storefront, but we continue to launch more storefronts, we launched 40, new storefronts and the first half alone. We just launched restaurant depot, which is our first wholesaler that supplies.

Foodservice, we just launched Cub last week another retailer so.

Chris Rogers: Truthfully, this is, I think, another great example where our internal adoption of AI with our tech teams can help us accelerate and accomplish our goals in North America at the same time as abroad. Great. I can jump in on your question around framing the impact of EBT SNAP. The way that I think about it is that, first of all, EBT is a relatively small part of our overall business. Obviously, as a company, we're very focused on making sure that we can help families get food on the table. What we've looked at in terms of our modeling is a variety of funding scenarios because there has been continued uncertainty about how the rest of the year will play out. Ultimately, we believe that we can achieve our guidance in any of those scenarios. Now, what does that mean?

We do believe that this is a very important part of our strategy and youre going to see us continue to lean into this our partnerships on the AD front with off platform are also going to be critical again. This was a foundational year, where we struck many partnerships and we're working through integrations and what our go to market motion is going to look like as we talked to brand advertisers about those capabilities.

These provide a little bit more color in terms of framing the impact of potential EBT and SNAP headwinds versus the incrementality of Enterprise and the ongoing strength in older growth. Thanks a lot.

And then when it comes to international.

First of all I want to say I'm very excited about our plan to take our technology to new markets. We have already spent some time in other countries. We've spoken of retailers and again, they're trying to solve the same problems as the retailers that I talk to in North America, how to build scalable E Commerce solutions ads and in store digital solutions for customers.

And that said, while I believe that this is going to be a very promising growth lever for us I'm also focused on ensuring that we are disciplined on expenses and the way that we do this in a way that's aligned with our profitability objectives.

Chris Rogers: It means that we have strong fundamentals in terms of how the business is performing. We did have strong performance in October. That's reflected in our guidance. As Chris mentioned earlier, we also are seeing continued momentum from our land and expand strategy with our enterprise partnerships. For example, we are deepening relationships with retailers like Wakefern and Cub. As Chris mentioned, we launched 40 net new retailer sites in H1 2024 alone, and we are starting to see the benefit of that. We launched Restaurant Depot, and that is off to a great start. Our embedded marketplace on Grubhub. A lot of little things are all coming together to drive overall strength in the business. Thank you. The next question will come from Nicole Devnani with Bernstein. Your line is open. Hi there. Thank you for taking the question.

Our ability to deliver annual EBITDA EBITDA progression.

So it is probably worth sharing a little bit more about our approach here. So we're exploring the major markets like Europe, but we're doing that with our existing products like storefront pro and keeper and feed storm, we're not building a new suite of technology specific to these markets. So we will be investing some there will be resources applied to that.

Thank you for the question um on new Partnerships. Uh look we we see potential in so many of our Partnerships across the broader business. If you're if you're asking about Enterprise specifically you know we have again 350 storefronts but we continue to launch More Store fronts. We launched 40 new storefronts in the first half alone, we just launched Restaurant Depot, which is our first wholesaler, that supplies Food Service. Uh, we just launched Cub last week, another retailer. So, you know, we do believe that this is a very important part of our strategy and you're going to see us continue to lean into this, our Partnerships on the ads fronts with all platforms, are also going to be critical again. This was a foundational year where we struck many Partnerships and we're working through Integrations and what our go to market motion is going to look like as we talked to Brand advertisers about those capabilities.

Effort, obviously to do the selling into localize our product, but again I tend to be super disciplined and extremely focused on how we do that.

Truthfully. This is I think another Great example, where our internal adoption of AI with our tech teams can help us accelerate and accomplish our goals in North America at the same time abroad.

And then when it comes to International, um, first of all, I want to say I'm, I'm very excited about our plan to take, uh, our technology to New Markets. We have already spent some time, in other countries, we've spoken to retailers and again, they're trying to solve the same problems as the retailers that I talked to in North America how to build scalable e-commerce Solutions ads and in-store digital solutions for customers.

Chris Rogers: Chris, you've spoken a lot about affordability. Can you maybe level set for us where we are today? What has the direction of travel been on markups over the past year or two, and where are we today versus your desired end goal on this objective? When you think about pushing towards price parity or reduced markups, it all makes a lot of sense, but there obviously is some tension with merchant partners that worry about their margins on third-party platforms. How do you get the partner base to buy into the strategy longer term? Does anything have to evolve or change about the Instacart model or structure as more retailers adopt this? Thank you. Thank you, Nikhil, for the question.

Great and I can jump in on.

Your question around framing the impact of EBIT snap.

So the way that I think about it is that first of all EBT is a relatively small part of our overall business obviously as a company. We're very focused on making sure that we can help families get food on the table, but what we've looked at in terms of our modeling as a variety of funding scenarios. Because there has been a continued uncertainty about how the rest of the year will play out.

And and uh, that said well, I believe that this is going to be a very promising gross lever for us. I'm also focused on ensuring that we're disciplined on expenses and the way that we do this in a way that's aligned with our profitability objectives. And, you know, our ability to deliver to annual, e e up progression. Uh, so it is probably worth sharing a little bit more about our approach here. So, we're exploring the major markets like Europe, but we're doing that with our existing products, like storefront Pro and Caper and food storm. We're not building, a new suite of Technology, specific to these markets,

And ultimately we believe that we can achieve our guidance in any of the scenarios.

Now what does that mean it means that we have strong fundamentals in terms of how the business is performing.

Chris Rogers: I think we all know, including our retail partners, how important it is to work on affordability, especially with the competitive environment and the fact that people are increasingly comparing prices online. Oftentimes, actually, it's the retailer that brings this up with me. As a result, we're working with almost all of our retail partners on our strategy, and this can take many forms, including surfacing deals more aggressively, reducing the markup, offering sale pricing, or going all the way to same-as-in-store pricing, which I think is what you're getting at with the question. On same-as-in-store pricing specifically, we know it's going to have a positive impact. We can see it in the data. Price parity retailers are growing 10 percentage points faster versus marked-up retailers. We know they retain better, and that's why many retailers have moved.

We did have strong performance in October that's reflected in our guidance and as Chris mentioned earlier. We also are seeing continued momentum from our land and expand strategy with our enterprise partnerships. So for example, we are deepening relationships with retailers like lakefront and Cub as Chris mentioned, we launched 40 net new retailer sites in each one alone and towards setting.

So, we will be investing some; there will be resources applied to this effort. Obviously, to do the selling and to localize our products. But again, I tend to be super disciplined and extremely focused on how we do that. And truthfully, this is, I think, another great example where our internal adoption of AI, with our tech teams, can help us accelerate in accomplishing our goals in North America at the same time as abroad.

Great. And I can jump in on

uh, your question around framing, the impact of

To see the benefit of that we launch restaurant depot and that is off to a great start our embedded marketplace on grubhub. So a lot of little things that are all coming together to drive overall strength in the business.

Thank you and the next question will come from Nicole <unk> with Bernstein. Your line is open.

snap. Um, so the way that I think about it is that, you know, first of all EBT is a, you know, relatively small part of our overall business. Obviously, as a company, we're very focused on making sure that, you know, we can help, you know, families, get food on the table. But what we've looked at in terms of our modeling is a variety of funding scenarios because there has been uh continued uncertainty about how the rest of the year will play out. Um and ultimately uh we believe that we can achieve our guidance in any of those scenarios.

Chris Rogers: In the first half, we announced that Heritage Grocers has moved to price parity. Schnucks went full price parity. Now we have several banners testing their way into it in major markets like Nashville, Chicago, Dallas, and Tucson. I don't know exactly where it's going to net out, but I do think that trend is going to continue. We don't break it out, Nikhil, because it's simply not binary. How would we capture a retailer that reduces their markup from 6% to 4%, which just happened? It's good news for the customer, but it wouldn't get recorded if we were tracking price parity full stop, or retailers that offer price parity, but only for loyalty-linked members, as an example.

Hi, there. Thank you for taking the question.

Chris you've spoken a lot about affordability can you maybe level set for us where we are today.

Is the direction of travel ban on markups over the past year or two and where are we today versus your desire to angle on this objective.

Now, what does that mean? Uh, it means that we have strong fundamentals in terms of how the business is performing. Uh, we did have strong performance in October that's reflected in our guidance. And as Chris mentioned earlier, we also are seeing continued momentum from our land and expand strategy with our Enterprise Partnerships.

And when you think about pushing towards price parity of reduced markups. It all makes a lot of sense, but there obviously is some tension with merchant partners that worry about their margins on third party platforms.

So how do you get the partner base to buy into the strategy longer term and is there anything that can evolve or change about the <unk> model or structure as more retailers adopted thank you.

Chris Rogers: All that said, I will likely report out on a quarterly basis any retailers that have moved to price parity so you can see any movement. For the third part of your question around our approach, for the most part, we're taking a consultative approach. We're sharing the data with what they might expect to see on Instacart from a sales perspective and a retention perspective. We're also sharing longer-term share and sales trends of digital overall, including where a retailer might be losing share to some of the largest players that are going after digital baskets. To the extent that we would invest, there are many kind of financial puts and takes with retailers, given the breadth of products and services that we have with most of them.

So for example, we are uh, deepening relationships with retailers like wake fund and Cub as Chris mentioned, we launched 40 net new retailer sites, in H1 alone. And so we're starting to see the benefit of that. We launched Restaurant Depot and that is off to a great start. Uh, our embedded Marketplace on GrubHub. So a lot of little things that are all coming together, uh, to drive overall, uh, strength in the business,

Thank you Nicole for the question.

So I think we all know, including our retail partners how important it is to work on affordability, especially with the competitive environment and the fact that people are increasingly comparing prices online oftentimes actually if the retailer that brings us up with me and as a result, we are working with almost all of our retail partners on our strategy and this can take many forms including.

thank you. And the next question will come from nickel devani with Bernstein. Your line is open.

Surfacing deals more aggressively or reducing the markup or offering sale pricing or going all the way to the same as in store pricing, which I think is what youre getting out with a question on famous in store pricing, specifically, we know what's going to have a positive impact we can see it in the data price parity retailers are growing 10 percentage points faster versus marked up retailers. We know they were.

Chris Rogers: Depending on the broader context, we might put some small dollars towards this, but for the most part, it's the retailers that need to lean in and make the decision and decide how to price their products. Thanks, Chris. Appreciate it. Thank you. The next question will come from Ron Josey with Citi. Your line is open. Great. Thanks for taking the question. Maybe, Chris, as a follow-up to that one, I wanted to ask about the chart and the letter around cards, top enterprise partners, and the cadence here. It looks for those retailers, the six retailers that were highlighted on the multiple platforms, maybe with the exception of two, most had a dip and then flattish growth before returning to that 10% average. Talk to us about the evolution here as competition ramps up or as exclusivity sort of dissipates here. Thank you. Yes, sure.

Pain, better and Thats why many retailers have moved in the first half we announced that heritage crushers as mutual prosperity shocks when full price parity and now we have several banners testing their way into it in major markets like Nashville, and Chicago and Dallas in Tucson, So I don't know exactly where it's going to net out but I do think that that trend is going to continue.

Hi there, thank you for taking the question. Um Chris you've spoken a lot about affordability. Can you maybe level set for us where we are today. Um, what is the direction of travel bin on? Markups over the past year or 2 and and where are we today versus your desired end goal on this objective. And then when you think about pushing towards Prosperity or reduce, markups it all makes a lot of sense. But there are obviously is some tension with Merchant partners that worried about their margins on third party platforms. So how do you get the partner based to buy into the strategy longer term and does anything have to evolve or change about the instacart model or structure?

As more retailers. Adopt this, thank you.

Thank you nikhil for the question.

We don't we don't break it out in the <unk> because its simply not binary how would be capture retailer that reduces their market mark up from 6% to 4%, which just happened.

Good news for the customer, but it wouldnt get recorded if we were tracking price parity full stop or retailers that offer price parity, but only for loyalty linked members. As an example, all of that said I will likely report out on a quarterly basis any retailers that have moved to price parity.

Chris Rogers: Hey, Ron. This is Emily. I can start. I think just to sort of level set on sort of why we included the chart and what we thought was interesting about it, obviously, we've had a lot of questions around loss of exclusivity and about how our enterprise relationships really solidify us for the future. What we looked at here was for retailers where we had an enterprise relationship, what happens to the business when we go non-exclusive. Of course, we're quite pleased to see that in those cases, we're able to continue very strong growth across all of the retailers. As you likely know, the vast majority, over 80% of our business, is non-exclusive today. Of the remaining that is exclusive, the majority of those have an enterprise relationship with us.

So that you can see any movement and then from for the third part of your question around our approach for the most part we're taking consultative approach and we're sharing the data with what they might expect to see an instant card from a sales lift perspective, and a retention perspective, we're also sharing longer term share in sales trends of digital overall.

All including where a retailer might be losing share to some of the largest players that are going after digital baskets.

And to the extent that we would invest there are many financial puts and takes.

Retailers, given the breadth of products and services that we have with most of them. So depending on the broader context, we might put some small dollars towards this but for the most part is the retailers that need to lean in and make the decision and decide how to price their products.

Chris Rogers: Just wanted to underscore why we feel confident in our ability to continue to grow our business. Now, fluctuations in the chart can be, there's nothing specific I would call out outside of things like seasonality or launches with individual retailers. That's what is going to drive some of the fluctuations you see in the chart. Great. Thank you, Emily. Thank you. The next question will come from Ross Sandler with Barclays. Your line is open. Yeah, great. Just following up on the price parity topic from a couple of questions back, has Amazon's big push changed the nature of the conversation between you guys and your merchants around price parity? That'd be question one. The second question is, the new AI offerings look super interesting.

More aggressively or reducing the markup, or offering sale pricing or going all the way to the same as in store pricing, which is I think is what you're getting out with the question, on same, as in store, pricing specifically, we know it's going to have a positive impact, we can see it in the data price. Parity retailers are growing 10 percentage points faster versus marked up retailers. Yeah, we know they retain better and that's why many retailers have moved. And the first half, we announced that Heritage Growers has moved to price priority Schnucks went full price, parity. And now, we have several banners testing their way into it and major markets like Nashville, and Chicago, and Dallas and Tucson. So I don't know exactly where it's going to net out, but I do think that that trend is going to continue. Uh, we don't, we don't break it out nikil because it's simply not binary, you know, how would we capture a retailer? That that reduces their Market mark up from 6% to 4%, which just happened. You know, it's good news for the customer but it wouldn't get recorded if we were tracking, you know, price. Parity, full, stop or retailers that offer price parity, but only for loyalty linked members as an example.

Okay.

Thanks, Brad I appreciate it.

Thank you. The next question will come from Ron Josey with Citi. Your line is open.

Alright, Thanks for taking the question, maybe Chris as a follow up to that one and I wanted to ask about the chart in the letter around cards top enterprise partner and the cadence here and looks for those retailers are six retailers that were highlighted on the multiple platforms, maybe theres an exceptional two most had a dip and then flattish growth before returning to that 10% average so talk to us about the evolution here.

All that said, you know I will likely report out on a quarterly basis any retailers that have moved to price parity. Um so that you can see any movement and then from for the third party of your question around our approach, for the most part, we're taking uh, consultative approach that we're sharing the data with what they might expect to see on instacart from a sales lift perspective and a retention perspective. We're ALS sharing longer term, share, and sales trends of digital overall including where a retailer, might be losing shared.

As competition ramps up, whereas the subsidiary sort of.

Dissipates here. Thank you.

Yeah, Sure Hey, Hey, Ron This is Emily I can I can start.

I think just to sort of level set on kind of why we included the chart and what we thought was interesting about it obviously, we've had a lot of questions around loss of exclusivity and about how our enterprise relationships really solidify us for the future and so what we looked at here was for our retailers, where we had an enterprise relationship what what happens to the business when we go into.

Some of the largest players that are going after digital baskets. Um, and, and to the extent that we would invest, you know, there are many kind of financial puts and takes with retailers, you know, given the breadth of products and services that we have with most of them. So depending on the broader context, we might put some small dollars towards this. But for the most part it's the retailers that need to to lean in and make the decision and decide how to price their products.

Chris Rogers: Could you just elaborate on how some of this might speed up adoption of merchants migrating to a solution like Instacart? Is this just more like kind of offering another service that just adds to the plethora of services that you guys already provide? Is this the materiality of the AI offering, I guess, is the question. Thank you. Yeah, thanks for the question, Ross. On the first one, as it relates to the competitive environment with Amazon and how retailers are thinking about this and how we're thinking about it, we have assessed the top markets that overlap with where Amazon's rolled out, including the top 30. We continue to grow in those markets and grow overall, as you can see from our results and guide. Our mix looks good. We're not seeing a shift in basket composition between small and large baskets.

Thanks Chris. Appreciate it.

Thank you. Next question will come from Ron Joie with City. Your line is open.

Exclusive and of course, we're quite pleased to see that in those cases, we're able to continue very strong growth across all of the retailers and.

As you likely know the.

Vast majority over 80% of our business is not exclusive today and of the remaining that is exclusive the majority of those have an enterprise relationship with us and so again just wanted to underscore why we feel confident in our ability to.

Great. Thanks for taking the question. Maybe Chris is a follow up to that 1 and I wanted to ask about the chart and the letter around carts uh top Enterprise Partners in the Cadence here. It looks for those retailers, the 6 retailers that were highlighted on the multiple platforms. Maybe it was the exception of 2. Most had a dip and then flat is growth of 4 return to that 10% average. So, talk to us about the evolution here as as competition ramps up or as the civity sort of um dissipates here. Thank you.

To continue to grow our business now.

Fluctuations in the chart can be there's nothing specific I would call out outside of things like seasonality or launches with individual retailers. So that's what it's going to drive some of the fluctuations you see in the chart.

Chris Rogers: We're not seeing anything meaningful in our ALV. That said, third-party data is showing that the largest source of Amazon.com grocery customers has been the in-store customers. We are using this as a rallying cry with retailers where we're already deeply embedded and who need omnichannel strategies to compete. This can show up in a bunch of different ways. It could show up as us more actively and aggressively engaging in our existing roadmap, depending on what we're working on with that retailer. It might mean that we're moving faster with in-store technologies like Caper Carts. As part of this, we are discussing pricing strategies. As mentioned, some of our large retailers are testing price parity pilots right now in some of the major cities that I outlined. I do think that retailers are keenly aware of what's happening in the competitive dynamic.

Great. Thank you Emily.

Thank you and the next question will come from Ross Sandler with Barclays. Your line is open.

Yes, sure. Hey, Hey, Ron. This is Emily. I can, I can start, um, you know, I think Jew just to sort of level set on sort of why we included the chart and what we thought was interesting about it. Um, obviously we've had a lot of questions around loss of exclusivity and about how, you know, our Enterprise relationships, really solidify us for the future. And so, what we looked at here was for retailers, where we had an Enterprise relationship, what, what happens to the business, uh, when we go non-exclusive and of course, we're quite pleased to see that.

Yes, great.

Just following up on the.

Price parity topic from a couple of questions back Ami.

<unk> big push.

<unk> the nature of the conversation between you guys and your merchants around price parity.

That would be question one and then the second question is.

The new AI offerings look Super interesting could you just elaborate on how some of this money.

Speed adoption.

Merchants migrating to a solution like ins to cargo, which is this is just more like kind of offering another service that.

Just add to the plethora of services that you guys already provided.

In those cases, where able to, you know, continue, you know, very strong growth across, you know, all of the retailers. And, um, as you likely know, uh, the vast majority, uh, over 80% of our business is not inclusive today and of the remaining that is exclusive, uh, the majority of those, uh, have an Enterprise relationship with us. And so, again, just wanted to underscore why we feel confident in our ability to, um, to continue to grow our business. Now, uh, fluctuations in the chart can be, you know, there's nothing specific, I would call out outside of things like seasonality or launches, with individual retailers. So, that's what is going to drive from the fluctuations. You see in the chart

Great. Thank you. Emily.

Chris Rogers: We're helping bring them solutions in order to address that and compete and win. On the second one, as it relates to AI solutions specifically and how it might speed up adoption of merchants, look, I do believe that this is going to speed up the entire industry. The way that we're going about this is very similar to the way that we go about all of our enterprise technology. We're going to be innovating directly on Instacart, and then we're going to take that technology to retailers. When we do these types of things, what we see is technology accelerates across the grocery ecosystem. On Instacart, we're going to be building out agentic experiences directly. We have incredible data from our 1.5 billion orders to date. We have a rich catalog from 17 million unique items. We understand people's preferences, and we have the best UX.

The materiality of the AI offerings I guess is the question. Thank you.

Thank you. And the next question will come from Ross, Sandler with Barclays. Your line is open.

Yes. Thanks for the question Ross on the first one as it relates to that.

Yeah, great. Um,

The competitive environments with Amazon and how retailers are thinking about that and how we're thinking about it we have assessed the top markets that overlap with where amazon's rolled out including the top 30, and we continue to grow in those markets and grow overall as you can see from our results and guidance our mix looks good we're not seeing a shift in basket composition between.

Just following up on the uh price. Parity topic from a couple questions back, has Amazon's big push.

Changed the nature of the conversation uh between you guys and your Merchants around price parity. Uh that'd be question 1 and then the second question is

Smaller more baskets, we're not seeing anything meaningful in our <unk>.

You know, the the new AI offerings look super interesting. Could you just elaborate on how some of this might

Speed up adoption of.

That said third party data is showing that the largest source of Amazon dot com grocery customers has been the in store customers and so we are using this as a rallying cry with retailers, where we're already deeply embedded in who need omnichannel strategies to compete this can show up in a bunch of different ways. It could show up.

Merchants migrating to a solution like instacart or just, this is just more like, kind of offering another service that

Just you know, adds to the plethora of services that you guys already provide is this, you know?

Chris Rogers: As a result, we do think we can deliver the most relevant agentic experience for grocery with a great user interface directly on Instacart. With what we called Cart Assistant last week, we will be bringing these conversational capabilities to our retail partners so that they're going to have similar capabilities at the same pace and scale that we're building out directly on our marketplace. This is going to, we think, enhance the grocery experience in several ways. You could interact with an assistant upfront, or you could interact with a digital assistant throughout the journey. For example, you could give Cart Assistant a prompt around a party for 10 people, and it would help you build a cart based on your past preferences and any other context that you provide about the other guests. You can shop normally and engage as needed.

The materiality of the AI offering I guess. Is the question. Thank you.

More active actively and aggressively engaging in our existing roadmap depending on what we're working on with our retailer.

Might mean that we're moving faster with in store technologies like <unk> <unk>.

And as part of this we are discussing pricing strategies.

And I've mentioned some of our large retailers are testing price parity pilots right now and some of the major cities that I outlined.

I do I do think that retailers are keenly aware of what's happening in the competitive dynamic we're helping bring them solutions in order to address that and to compete and win.

That overlap with where Amazon's rolled out including the top 30 and we continue to grow in those markets and grow overall, as you can see from our results and guide and our mix looks good, we're not seeing a shift in basket, composition between small and large baskets. We're not seeing anything meaningful in our aov.

Okay.

On the second one as it relates to AI.

AI solutions, specifically and how it might speed up adoption of merchant.

Chris Rogers: For example, at the end of the shop, you could say, check my entire basket for any gluten, as an example. We're going to take that technology and make it available to our retail partners in the form of this AI solution. That means we're going to be building agentic experiences on retailers' owned and operated websites, like the ones we've already highlighted, Sprouts and Kroger. Thank you. The next question will come from Justin Post, Bank of America. Your line is open. Great, thank you. A couple of questions. I wonder if you could help us understand the enterprise solution's contribution maybe to revenues or just overall to your business besides just retention of retailers, just financially, how you think about it. Second, you did mention that October's off to a strong start.

I do believe that this was good going to speed up the entire industry and the way that we're going about this is very similar to the way that we go about all of our all of our.

Okay.

Enterprise technology, we're going to be innovating directly on into the cart and then we're going to take that technology to retailers.

When we do these types of things, what we see as technology accelerates across the grocery ecosystem. So on <unk>, we're going to be building out <unk> experiences directly we have incredible data from a $1 5 billion of orders to date, we have a rich catalog from 17 million unique items, we understand people's preferences, and we'd have the best UX.

That said, third party data is showing that the largest source of amazon.com grocery customers have been the in-store customers. And so we are using this as a rallying cry with retailers where we're already deeply invested, and who need Omni Channel strategies to compete. This can show up in a, in a bunch of different ways. It could show up as us, more active actively, and aggressively engaging in our existing road map, depending on what we're working on with that retailer. It might mean that we're moving faster with in-store Technologies, like, keeper cards. And as part of this, we are discussing pricing strategies.

And as mentioned some of our large retailers are testing price, parity Pilots right now and some of the major cities that are outlined. Um, but I do, I do think that retailers are keenly aware of what's happening in the competitive Dynamic. We're helping bring them Solutions in order to address that and competing with

And as a result, we do think we can deliver the most relevant and egencia experience for groceries with a great user interface directly on instant card and then with what we called Carton assistant last week, we will be bringing these conversational capability to our retail partners. So that they are going to have similar capabilities at the same pace and scale of that.

Chris Rogers: I know there's some competitive concerns out there, but are you seeing any changes from new competition in October? Thank you. Okay, Justin, I'll start. I'm glad you're asking about the enterprise business because, again, we think it's one of our biggest critical advantages. From an economic perspective, there are some non-direct benefits. It increases our order density, gives us cost-to-serve advantages, and allows us to reinvest back into the business. We don't break out growth or unit economics on enterprise or marketplace because it differs retailer by retailer. We're constantly working with retailers to launch a host of new services. What I can tell you is that both marketplace and enterprise are growing parts of our business. Both add to our bottom line, and both reinforce each other in a virtuous cycle. We're an investment in one.

We're building out directly on our on our marketplace and this is going to we think enhance the grocery experience in several ways you can interact with and assistance upfront or you could interact with a digital assistant or throughout the journey. So for example, you could give card assistant a prompt around.

Party for 10 people and it would help you build a cart based on your cost preferences and any other context that you can provide about the other guests or you can shop normally engage as needed. So for example at the end of the shop you could say.

My entire basket for and.

As an example.

So we're going to take that technology, we're going to make it available to our retail partners in the form of this air solution and that means that we're going to be building a junk tick experiences on retailers owned and operated websites like the ones that we've already highlighted sprouts and Kroger.

On the second 1 as it relates to AI um AI Solutions specifically and how it might speed up. Adoption of merchants, look I I do believe that this is good going to speed up the entire industry and the the way that we're going about, this is very similar to the way that we go about all of our, all of our, um, uh, Enterprise technology. We're going to be innovating directly on instacart, and then we're going to take that technology to retailers, and we're going to, when, when we do these types of things, what we see is technology accelerates across the grocery ecosystem. So on instacart, we're going to be building out, agentic experiences directly. We have incredible data from our 1.5 billion orders to date. We have a rich catalog from 17 million unique items. We understand people's preferences and we have the best ux. And as a result, we do think we can deliver the most relevant and genetic experience for grocery with a great user interface directly on instacart. And then with what we called cart assistant law,

Chris Rogers: If we make an investment on marketplace, it helps us with our investment in enterprise. I think the only thing I would add to that is just that enterprise is not a new part of our business. We're obviously talking about the opportunity for growth. If you recall back at the time of the S1, at that time, we talked about how enterprise was about 20% of our business. I just wanted to call out that the enterprise economics have been included to date. I thought that might be helpful. Great. On the second part of your question, Justin, around competition, look, it's an attractive market. Fortunately, competition isn't new to us. We're not at all surprised by the evolving competitive landscape, given the mass of TAM, and the market penetration is relatively small relative to other e-commerce categories.

Thank you and the next question will come from Justin Post Bank of America. Your line is open.

Great. Thank you a couple of questions.

I Wonder if you could help us understand the enterprise solutions contribution.

Last week, you know, we will be bringing these conversational capabilities to our Retail Partners so that they're going to have similar capabilities at the same pace and scale that we're building out directly on our on our Marketplace. And this is going to we think enhance the grocery experience in several ways. You could interact with an assistant up front or you could interact with a digital assistant that throughout the journey. So for example, you could give carte assistant a prompt around a party.

Maybe revenues or just overall to your business. Besides just retention of retailers just financially how you think about it and then second you did mentioned that October is off to a strong start I know there is some competitive concerns out there but are you seeing any changes from new competition in October.

For 10 people and it would help you build a cart based on your cost preferences and any other context that you provide about the other guests, or you can shop normally, and engage as needed. So, for example, at the end of the shop, you could say check my entire basket for, uh, any gluten as an example.

Thank you.

Okay, Justin I'll start I'm glad you're asking about the enterprise business because again, we think it's one of our biggest critical advantages.

Chris Rogers: When I take a step back here, it's clear that we're playing a different game. We're leading in areas of the market that our competitors don't really touch, such as big baskets, so over $75, which still represents 75% of the online grocery market, and on retailers' owned and operated sites, which, as I've already said, we're an enterprise platform. Because of these key differences, we continue to be the clear leader in online grocery among digital-first players. We're leading in share of sales by far. We're three times higher than the next largest digital player. We're leading in new activation GTV. We're multiples higher in large basket activation. We're multiples more effective at converting small basket activations to large baskets. In my mind, we've proven that we can compete and win in a highly competitive space.

And so, you know, we're going to take that technology. We're going to make it available to our Retail Partners in the form of this AI Solutions. And that means that we're going to be building a genetic experiences on retailers owned and operated websites, like the ones that we've already highlighted sprouts and Kroger.

From an economic perspective, there are some non direct benefits and increases our order density. It gives us cost sort of advantages that allows us to reinvest back into the business, but we don't breakout growth or unit economics on enterprise or marketplace, because it differs retailer by retailer and we are.

Thank you. And the next question will come from Justin post Bank of America? Your line is open.

Great. Thank you. A couple of questions. Um,

Constantly working with retailers to launch a host of new services, but what I can tell you is that both marketplace and enterprise are growing parts of our business both to our bottom line both reinforce each other in a virtuous cycle, where an investment in one if we make an investment on marketplace. It helps us with our investments in an enterprise.

I wonder if you could help us understand the Enterprise Solutions contribution, uh, maybe to to revenues or, or just overall to, to your business, be besides just, uh, retention of of retailers, uh, just financially, how how you think about it. And then second you, you did mention that October's off to a strong start. And I know there's some competitive concerns out there. But are you seeing any, any changes from new competition in October? Thank you.

Yeah.

Chris Rogers: We haven't seen anything in the short term that would change that. Great. Thank you. Thank you. The next question is going to come from Deepak Mathivanan with Cantor Fitzgerald. Your line is open. Great. Thanks for taking the question. Chris, the new AI tools are very interesting. Can you talk about the strategy to kind of merchandise the tools more extensively in front of consumers and perhaps aim to make Instacart a bigger part of the meal planning service for consumers beyond the weekly grocery delivery service? How much of this experience is dependent on sort of like a retailer integration with some of the data and tools that you have? Maybe one for Emily. I think Chris noted that the unit economics is positive for all types of orders. Can you talk about the factors that help small basket orders reach profitability?

Yes, I think the only thing I would add to that is just that enterprises that a new part of our business. We're obviously talking about the opportunity for growth, but if you recall back at the time of the S. One.

Okay, uh, Justin, I'll start. I'm glad you're asking about the Antichrist business because, again, we think it's one of our biggest critical advantages.

At that time, we talked about how enterprise was about 20% of our business. So I just wanted to call out that the enterprise economics have been included to date.

So.

I thought that might be helpful that.

Great and on the <unk>.

Part of your question.

Adjusted around competition.

Look it's an attractive market. Unfortunately competition isn't new to us and we're not at all surprised by the evolving competitive landscape given the massive Tam in the market penetration is relatively small relative to other e-commerce categories.

But when I take a step back here, it's clear that we're playing a different game, we're leading in areas of the market that our competitors don't really touch such as big baskets, so over $75, which still represents 75% of the online grocery market and on retailers owned and operated sites, which ive already as I've already said, we are an enterprise platform and because of.

Um, from an economic perspective. Uh, there are some non-direct benefits, you know, and increases our order density. It gives us cost of service, advantages it allows us to reinvest back into the business but we don't break out growth or unit economics on Enterprise or Marketplace because it differs retailers by retailer. And, you know, we're constantly working with retailers to launch a host of new services, but what I can tell you is that both Marketplace and Enterprise are growing parts of our business. Both add to our bottom line, both reinforce each other in a virtuous cycle where an investment in 1. If we make an investment on Marketplace, it helps us with our investments in, in Enterprise.

Chris Rogers: Do you think there's a runway to kind of improve the incremental margins for these over time? Thank you so much. Thank you, Deepak. I'll take the first one around AI tools. We're actively using AI directly on Instacart in order to enhance the experience. We're looking for ways constantly to merchandise those. We're focused on better personalization, the most relevant digital shelf for better recommendations, better replacements, and we want to use our rich dataset to really capitalize on the rise of GenAI. Our product catalog spans 2 billion product instances. We're finding the 17 million unique items. We've completed over 1.5 billion lifetime orders, and that gives us a real advantage to put personalized experience at the forefront of the consumer experience going forward, including things like meals, which you've called out.

These key differences that we continue to be the clear leader in online grocery among digital first players we're leading in share sales by far were three times higher than the next largest digital player. We're leading in new activation, GTP, where multiples higher than large basket activation, where multiples more effective at converting small basket activations to large basket. So.

Uh, opportunity for growth. But if you recall back at the time of, you know, the S1 uh at that time, we talked about how Enterprise was about 20% of our business. So just wanted to call out that, you know, the Enterprise economics been included uh to date. Uh and so um thought that might be helpful.

Great. And on your the second part of your question.

Uh, Justin around competition. Um,

In my mind, we've proven that we can compete and win in a highly competitive space and we haven't seen anything in the short term will change.

Great. Thank you.

Thank you and the next question is going to come from Deepak <unk> with Cantor Fitzgerald. Your line is open.

Great. Thanks for taking the question so Chris the new AI tools are very interesting.

Chris Rogers: We will have the ability to create customized meal plans based on inputs from consumers in the future. That's all coming. You can start to see some of the things that we're doing on our site already from a merchandising perspective with things like Smart Shop, which is our AI-powered personalized shopping experience, which analyzes customer behavior from dietary preferences to surface the most relevant products faster. We've created virtual aisles today, which are live, tailored to specific household needs. If you have a baby, or if you have a pet, or a dietary need, we are also doing personalized replacements, which is showing up today to consumers. That includes incorporating, again, dietary needs as well as pricing and past preferences. We've really started to surface AI-driven experiences, and you're just going to see that continue to accelerate into the future.

Let's talk about the strategy to kind of merchandise to do it more extensively in front of consumers and perhaps aimed to make them stick on a bigger part of the planning service for consumers beyond the weekly grocery delivery service and how much of this experience needs.

Is dependent on southern link retailer integrations with some of the data and tools that you have and then maybe one for Emily I think Chris noted that the unit economics is positive for all types of orders can you talk about the factors that helps small basket orders reached profitability and do you think there's runway to kind of include the incremental margins for visa over time.

You know, look, it's an attractive Market. Fortunately, competition isn't new to us and we're not at all surprised by the evolving, competitive landscape, given the massive Tam and the market. Penetration is relatively small, relative to other e-commerce categories. But when I take a step back here, it's clear that we're playing a different game. We're leading in areas of the market that are competitors. Don't really touch such as big baskets. So over 75 which still represents 75% of the online grocery market and on retailers owned and operated sites, which I've already as I've already said we're an Enterprise platform and because of these key differences, that we continue to be the clear leader in online grocery among digital first players. We're leading in share sales by far where 3 times higher than the next largest digital player. We're leading in new activation GTV where multiple higher and large basket activation where multiple is more effective at converting small basket, activations to large baskets. So, in my mind, we've proven that we can compete and win in a highly competitive space, and we haven't seen anything in the short term, that would change that.

Great. Thank you.

Thank you so much.

Thank you Deepak ill take the first one around AI tools.

Thank you. And the next question is going to come from Deepak MyAnna with Cantor Fitzgerald July is open.

We are actively using AI directly on <unk> in order to enhance the experience and we're looking we're looking for ways constantly to merchandise. Those we're focused on better personalization. The most relevant digital shelf were better recommendations better replacements and we won.

Chris Rogers: On unit economics for various basket sizes, one of the most important things that drives our ability to create unit economics that we like is really about the density of orders at the same place at the same time, because that allows us ultimately to batch orders. What you've seen is that the number of orders that we have per batch has increased by double digits over the last four years. That's been a key focus of ours. Additionally, we started to talk about how we were able to batch priority orders, which was something that was new for us over the last several quarters. We're now batching about a quarter of priority orders, and that, again, allows us to really take advantage of that overall density. The other thing that we focus on is just time to fulfill an order.

To use our rich data set to really capitalize on the rise of journey II. Our product catalog spans 2 billion products instances refined into 17 million unique items, we've completed over $1 5 billion lifetime orders and that gives us a real advantage to put personalized experience at the forefront of the consumer experience going forward, including this year.

On June <unk>.

You've called out we will have the ability to create customized meal plans based on inputs from consumers in the future and that's all coming.

Go ahead. Um, thanks for taking the question. So Chris the new AI tools are very interesting. Um, can you talk about the strategy to kind of merchandise, the tools more extensively in front of consumers and perhaps uh aim to make instacart a bigger part of the meal planning service for consumers? You know just beyond the weekly grocery delivery service and how much of this experience needs. Um you know what is dependent on sort of like a retailer Integrations with some of the data and tools that you uh have and then uh, maybe 1 for Emily. I think Chris noted that the unit economics is positive for all types of orders. Um, can you talk about the factors that help small basket orders reach profitability, and do you think there's Runway to kind of include the incremental margins of these over time? Thank you so much.

Theres also you can start to see some of the things that we're doing on our site already from a merchandising perspective with things like smart shop, which is our AI powered personalized shopping experience, which analyzes customer behavior from and dietary preferences to surface.

Chris Rogers: The time it takes for a shopper to fulfill an order has gone down by 25% over the last four years. It's these kind of things that we're really focused on. Again, it's really about shaving off seconds or minutes of an order that allows us to get to a place where when we launched the minimum basket size sort of end of last year into early this year, we said we could do it at economics we like. That said, if I look at the sort of economics of basket sizes since that launch, I'm really, really pleased with our ability to improve the overall profile, and really seeing effectively convergence of our ability to be profitable across any basket size. That allows us ultimately to be the provider that can service any of a consumer needs.

The most relevant products faster. So we've created virtual IL today, which are alive, which are tailored to specific household needs. So if you have a baby or if you have a pet and.

Thank you DAC. I'll take the first 1 around AI tools. So you we are, we are actively using AI directly on instacart in order to enhance enhance the experience. And we're looking, we're we're looking for ways constantly to merchandise. Those, we're focused on better personalization, you know, the most relevant digital shelf for better recommendations, better Replacements. And we want to use our Rich data set to to Really capitalize on the rise of Genai. Our product catalog spans 2 billion

Or a dietary need and we were also doing personally for placements, which is showing up today to consumers that includes incorporating again dietary needs as well as pricing and past preferences. So we've really started to surface AI driven experiences and youre just going to see that continue to accelerate into the future.

Okay.

Our unit economics for various basket sizes. So what are the most important things that drives our ability to create unit economics that we like is really about the density of orders at the same place at the same time because that allows us ultimately to batch orders and what you've seen is that the number of orders that we <unk>.

Chris Rogers: Now, we've talked about our strength in big baskets. Of course, we think that's critical to being able to serve the primary use case for groceries for families. The fact that we're able to do that across small baskets as well means that we can be there for you regardless of the use case. Great. Thank you so much. Thank you. The next question comes from Ken Gawroski with Wells Fargo. Your line is open. Thank you too, if I may, please. First, as digital grocery delivery becomes more ubiquitous, are you seeing any changes to shopper behavior? Are basket sizes becoming smaller and maybe shopping occasions becoming more frequent? Do you see any of this in kind of any of your customer cohorts? If so, what does it mean for Instacart? That's question one. Second question, please.

Per batch has increased by double digits over the last four years. So that's been a key focus of ours. Additionally, we started to talk about how we were able to batch priority order, which was something that was new for us over the last several quarters.

And we're now batching about a quarter of priority order since that again allows us to really take advantage of that overall density. The other thing that we focus on is just time to fulfill an order.

Product instances, we're finding the 17 million unique items. We've completed over 1.5 billion lifetime orders and that gives us a real advantage to put personalized experience at the Forefront of the consumer experience. Going forward, including the things like meals, which you which you've called out, we will have the ability to create customized meal plans based on inputs from consumers in the future. And that is, that's all coming. Um, there's also, you know, you you can start to see some of the things that we're doing on our site already from a merchandising perspective with things like Smart Shop, which is our AI powered personalized shopping experience, which analyzes customer behavior from and dietary preferences to surface that the most relevant products faster. So we've created virtual aisles today which are live which are tailored to specific household needs. So if you have a baby or if you have a pet and you know, or a dietary need and we were also doing personalized Replacements which is showing up today to Consumers that includes incorporating again. Dietary needs as well as

Pricing and and past preferences. So we've, we've really started to surface AI driven experiences and you're just going to see that continue to accelerate into the future.

And again the time it takes for a shopper to fulfill an order has gone down by 25% over the last four years. So it's these kind of things that we're really focused on again, it's really about shaving off seconds or minutes of an order and that allows us to get to a place where when we launched the <unk>.

Um,

Chris Rogers: Just any updates you might have on the New York City delivery minimum wage changes expected in early 2026 and in any ways you anticipate to mitigate those impacts. Thanks so much. Sure. Yes, I can start with the shopping behavior. No, we're really not seeing what I would describe as change in, I'll say consumer, because when I think of shoppers, I think of the person executing the basket in the store. On the consumer side, which I think is where your question was, but correct me if wrong, what we're seeing actually is that large basket growth remains consistent. It is continuing to be the majority of the market, at 75% of the market. What we're seeing is that by reducing the basket size, what we're adding is incremental use cases.

Minimum basket size sort of end of last year into early this year.

We said we could do it at economics, we like that said if I look at the sort of the economics of basket sizes since that launch I am really really pleased with our ability to improve the overall profile and really seeing effectively convergence of our ability to be.

Profitable across any basket size, so that allows us ultimately to be the provider that can service.

Any of our consumer consumer needs now we've talked about our strength in big baskets and of course, we think thats critical to being able to serve the primary use case for growth rates for families.

The fact that we're able to do that across small baskets as well means that we can be therefore for you regardless of the use case.

Chris Rogers: Overall, I think about it more as capturing the full set of needs of the consumer. In terms of what we're seeing in terms of just general behavior, we continue to see large baskets playing a critical role. For the second one on New York, I'll speak to it at a high level, and then Emily can speak to how we're thinking about it financially. What we know is that New York City Council passed a bill that establishes a minimum earning standard for grocery delivery workers. Mayor Adams did veto the bill, but the council ultimately overrode it. The bill extends existing earning standards that restaurant delivery platforms have been operating under since 2014 to grocery delivery workers. Now we're working with the city during the rule-making process.

Great. Thank you so much.

Thank you and the next question comes from.

Ken Garosci with Wells Fargo. Your line is open.

Thank you two if I may please.

<unk>.

Digital grocery delivery becomes more ubiquitous.

Seeing any changes to shopper behavior, our basket size is becoming smaller and maybe shopping occasions, becoming more frequent.

Do you see any of this and kind of any of your customer cohorts.

So what does it mean for instance.

Question. One second question. Please just any updates you might have on the New York City delivery minimum wage changes expected in early 'twenty six.

Chris Rogers: It's a little early to determine the impact, but look, our mission is to help families put food on the table. The reason we don't support these types of extreme regulations is that they do the opposite. We know that this is going to come at the detriment of customers, shoppers, and retailers in New York City. Customers could see increased fees. Shoppers could see fewer earning opportunities, and they may lose the flexibility to choose when and where they shop. Retailers will likely see fewer orders given the cost increase to consumers. We have dealt with many regulatory changes over the course of Instacart's history, and we're confident we're going to be able to navigate this one and still deliver on our profitability objectives at a company level.

And any ways you anticipate to mitigate those impacts thanks, so much.

Climate takes for a shopper to fulfill an order has gone down by 25%, uh, over the last 4 years. So it's these kind of things that uh, were really focused on again. It's really about shaving off seconds or minutes of an order. Um, that allows us to get to a place where, you know, when we launched the minimum basket size sort of end of last year into into early this year. Um, you know, we said we could do it at economics. We like, uh, that said, if I look at the sort of Economics of basket sizes, since that launch, I'm really, really pleased with our ability to improve the overall profile. And really seeing, you know, effectively convergence of our ability to be, uh, profitable across any basket size. So, that allows us ultimately to be the provider that can service. You know, any of a consumer, uh, consumer needs. Now, we've talked about our strengths in big baskets, and, of course, we think that's critical to being able to serve the, uh, primary use case for groceries for families. Uh, but but the fact that we're able to do that across small baskets,

Sure, Yes, I can start with the.

As well, it means that we can be there for you, regardless of the use case.

Shopping behavior. So so no we're really not seeing.

Great, thank you so much.

What I would describe it as change in I'll say consumer because I think when I think of shoppers I think of the person executing the basket in the store so on the consumer side, which I think where your question was the correct me if wrong.

Thank you. And the next question comes from Ghent Ken Gosky with Wells Fargo. Your line is open.

What we're seeing actually is that large basket growth remains consistent so it is continuing to be the majority of the market at 75% of the market.

Thank you, too. If I may, please, uh, first, um, as digital grocery delivery becomes more ubiquitous, are you seeing any changes to shopper behavior?

And so really what we're seeing is that by reducing the basket size, what we're adding is incremental use cases.

Chris Rogers: To be clear, this is not an outcome that we want or believe is good for stakeholders in New York City. I think the only thing I would add there is just that for us, New York represents a pretty small percentage of overall GTV. I agree with everything Chris said in terms of navigating the potential to see increased fees on the consumer side, but not something we haven't seen before and certainly able to navigate at a total company level. Thank you. Thank you. The next question is going to come from Stephen Fox with Fox Advisors. Your line is open. Hi, good morning. I just had one question.

And so overall I think about it more as capturing the full set of needs of the consumer but the.

In terms of what we're seeing in terms of just general behavior, we continue to see large basket playing a critical role.

Uh, our basket size is becoming smaller and maybe shopping occasions becoming more frequent. Uh, do you see any of this in in kind of any of your customer cohorts and, and if so, what what does it mean for instacart? That's the question 1. Uh, second question, please, just any updates. You might have on the New York City Delivery minimum, wage changes expected in early 26. Uh, and, and any ways you, uh, anticipate to mitigate those impacts. Thanks so much.

And for the second one on New York I'll speak to it at a high level.

Speak to you, how we're thinking about it financially.

What we know is that New York City Council passed a bill that establishes a minimum earnings candidate for grocery delivery workers mirror, Adam did veto the bill to the council ultimately overrode it bill extend existing earnings standards, our restaurant delivery platforms have been operating under since 2014 to grocery delivery.

Chris Rogers: I was curious if you could talk a little bit more of the reasons behind even pursuing any international expansion at this point as opposed to doubling down on your advantages that you've talked about in the US from two aspects. One, just the here and now that I just mentioned. Secondly, the fact that as you have moderate success there, it's going to lead to bigger and bigger investments, which maybe your investors are less inclined to accept. Thanks. Yeah, thank you, Stephen. I mean, we think this is the right moment in time for us to start exploring markets outside of North America. For the last few years, we've been working with retailers throughout North America, and we've established a very strong base. We understand retailers and the types of challenges that they're trying to solve locally in the US and Canada.

And.

Now, we're working with the city during the rule, making process. So it's a little early to determine the impact but look our mission to help families put food on the table and the reason we don't support the sort of types of extreme regulations that they do the opposite.

But this is going to come at the detriment of customers and shoppers and retailers in New York City customers could see increased fees shoppers could see fewer earnings opportunities.

Uh, so no, we're really not seeing um, what I would describe as change in. Uh, I'll say consumer because I think when I think of Shoppers, I think of the person executing the the, the basket in the store. So, uh, on the consumer side which I think where your question was, but correct me if wrong, um, what we're seeing actually is that large basket growth remains consistent, so it is continuing to be the majority of the market at 75% of the market. Um, and so, really what we're seeing is that by reducing the basket size, what we're adding is incremental, use cases. Um, and so overall, um, I think about it more as capturing the full set of needs of the consumer, uh, but the, uh, in terms of what we're seeing in terms of just general Behavior, Uh, we continue to see large baskets, playing a, a critical role.

With the flexibility to choose when and where they shop.

We'll likely see few orders given the cost increase to consumers.

But we have dealt with many regulatory changes over the course of.

That's history.

Chris Rogers: We believe, based on all of our conversations, that it's the exact same challenges that they're trying to solve in these other markets. The opportunity feels right. Again, we're going with our existing set of products, Storefront Pro, Caper Carts, and FoodStorm. These are built. Yes, we're going to need to invest in the go-to-market motion. For the most part, we're taking our existing technology, and we're extending that to retailers beyond just North America so that we can continue to grow our business in new markets. Yeah, I think the one thing I would just add just to clarify the difference that Chris just mentioned is we're building on products that already exist today.

And we're going to be able to navigate this one and still deliver on our profitability objective of the company.

To be clear this is not an outcome that we want to believe it.

New York City.

Yes, I think the only thing I'd add there is just that for US New York represents a pretty small percentage of overall GTD. So agree with everything Chris said in terms of navigating the potential to see increased fees that consumer side, but not something we haven't seen before and certainly able to navigate in a total company level.

And for the second one on New York, I'll speak to it at a high level and then Emily can speak to you about how we're thinking about it financially. So, what we know is that the New York City Council passed a bill that establishes a minimum earning standard for grocery delivery workers. Mayor Adams did veto the bill, but the council ultimately overrode it. The bill extends the existing earnings standard to restaurant delivery platforms that have been operating under it since 2014, to grocery delivery workers. He is now working with the city during the rule-making process.

So it's a little early to determine the impact. But look, our our mission is to help families put food on the table. And the reason we don't support these kind of specific

Thank you.

Thank you and the next question is going to come from Steven Fox with Fox Advisors. Your line is open.

Extreme regulations do the opposite. We know that this is going to come with the detriment of customers and shoppers, as well as retailers in New York City. Customers could see increased fees; shoppers could see...

Chris Rogers: What we did not mention was trying to build a marketplace solution, which I think has a different investment profile, as you mentioned, Stephen, than going with what are sort of effectively enterprise-led solutions. That is helpful. Thank you. Thank you. Our next question will come from Andrew Boone with Citizens. Your line is now open. Thanks so much for taking the questions. Chris, you mentioned in an earlier response the path to 4% to 5% tick rates for ads. Can you just walk us through the path there? Is that on-platform, or do Carrot Ads need to grow larger for you guys to be able to reach that target? Any help there would be great. Is there any update you guys can provide in terms of Instacart Plus? We have not talked about that this quarter. What is new? What is changing? Kind of what is the plan to grow penetration?

Hi, Good morning, just had one question I was curious if you could talk a little bit more of the reasons behind that even pursuing any international expansion at this point.

If you are hurting opportunities and they may lose the flexibility to choose when and where they shop retailers will likely. See few orders given the cost increase to Consumers, um, but we have dealt with many regulatory.

Changes over the course.

As opposed to double down on your advantages that you've talked about in the U S.

History, and we're confident that we're going to be able to navigate this and still deliver.

For our profitability.

Perspective that accompanies.

From two aspects one just the here and now as I just mentioned and secondly, the fact that as you have moderate success, there, it's going to lead to bigger and bigger investments, which may be your investors are less inclined to accept.

To be clear. This is not an outcome that we want to believe is good for stakeholders in New York City.

Yes. Thank you Stephen I mean, we think this is the right moment in time for us to start exploring markets outside of North America for the last few years, we've been working with retailers throughout North America, and we've established a very strong base. We know we understand retailers and the types of challenges that theyre trying to solve locally in the U S and Canada and we believe.

Yeah, I think the only thing I would add there is just that, you know, for us, New York represents a pretty small percentage of overall GTV. I agree with everything Chris said in terms of navigating the potential to see an increase in fees on the consumer side. But it’s not something we haven’t seen before, and we are certainly able to navigate it at a total company level.

Thank you.

Chris Rogers: Thank you. Yeah, thank you for the question, Andrew. Again, I want to reiterate that we do believe we're very confident in our ability to achieve our long-term targets of 4% to 5%. I do think it's going to come from a combination of things that are going to get us there. As a starting point, we're consistently innovating on-platform with new formats and optimizations. We're building out new tooling like one-click recommendations, which is now out to 3,000 brands. We just launched AI landing pages, which are now broadly available to brands. What's going to build on top of that is everything that we're doing on our own platform. It's just the ad ecosystem that we're building and the foundation that we've been building throughout the last couple of years. Carrot Ads is going to be a big part of our growth engine longer term.

Thank you. And the next question is going to come from Steve and fox with Fox advisor. Your line is open.

Based on all of our conversation that it's the exact same challenges that theyre trying to solve and these other markets and so the opportunity feels right again, we're growing with our existing set of products storefront pro and <unk>. These are these are built so yes, we're going to need to invest in the go to market motion, but for the most part we're taking our existing technology and we're.

Attending and Thats, our retailers beyond just North America. So that we can continue to grow our business in new markets.

Yes, I think the one thing I would just add just to clarify the difference that Chris just mentioned is we are building on products that already exist today, well. We didnt mentioned was trying to build a marketplace solution, which I think has a different investment profile as you mentioned Stephen.

Your investors are less inclined to accept. Thanks.

And then going with what are sort of effectively enterprise led solutions.

Chris Rogers: Again, we're up to 240 Carrot Ads partners today. We're extending our existing tech and demand onto all of these retailers' sites, and we're continuing to launch more. Ads on Caper is, we believe, very promising. We've just launched ads on Caper at Wakefern, where we're at 20% of stores having Caper Carts. We believe that that's going to be a very exciting in-store use case. Actually, I think it's one of the most exciting omnichannel advertising use cases that exists today because we have the ability to target customers and work with retailers to deliver personalized ads in the store. That is an exciting vector for us. We're really pleased with the foundation that we've made with off-platform partnerships this year, and extending that to more partners, including Pinterest, and TikTok.

That's helpful. Thank you.

Thank you and our next question will come from Andrew Boone with sort of a sense. Your line is now open.

Thanks, So much for taking my questions. Chris you mentioned in an earlier response, the path to 4% to 5% take rates for ads can you just walk us through the path or is that on platform or to Karen I'll just need to grow larger you guys reach that target any help there would be great. And then is there any update you guys can provide in terms of <unk>.

Yeah, thank you, Stephen. I mean, we think this is the right moment in time for us to start exploring markets outside of North America. For the last few years we've been working with retailers throughout North America and we've established a very strong base. We know we understand retailers and the types of challenges that they're trying to solve locally in the US and Canada. And we believe based on all of our conversations that it's the exact same challenges that they're trying to solve in these other markets. And so, the opportunity feels right again, we're going with our existing set of products, storefront Pro and Caper and foodstorm. These are, these are built. So yes, we're going to need to invest and go to market motion. But for the most part, we're taking our existing technology and we're extending that to retailers Beyond just North America so that we can continue to grow our business and new markets.

Plus we have talked about that this quarter whats new whats changing kind of what's the plan to broaden penetration Matt. Thank you.

Yes. Thank you for the question Andrew.

Again, I want to reiterate that we do believe we're very confident in our ability to achieve our long term target of 4% to 5%, but I do think it's going to come from a combination of things that are going to get us there as a starting point, we're consistently innovating on platform with new formats optimizations, we are building out new.

Chris Rogers: When you take all of these, it's not just one thing. When you take all of these strategic pieces together, that's what's going to drive our long-term growth. We're going to extend our high-performance on-platform that brands trust. They trust our performance, they trust our measurement, and then we're taking all of that performance to all of these new surface areas where we see real growth potential over the long term. In terms of Instacart Plus, this continues to be a really critical part of our overall strategy. We are focused on doubling down on Instacart Plus because these are our best customers. In terms of where we are today, paid Instacart Plus members continue to grow. The engagement of those users as a percentage of our monthly users continues to deepen. That's something we like to see.

Yeah, I think the 1 thing I would just add just to clarify, you know, the the difference, uh, that Chris just mentioned is, you know, we're building on products that already exists today. Uh, what we didn't mention was, you know, trying to build a Marketplace solution, which I think has a different investment profile, as you mentioned. Uh, Stephen, uh, then, you know, going with what our sort of effectively, you know, Enterprise Le Solutions.

That's helpful. Thank you.

Thank you. And our next question will come from Andrew bun with citizens. Your line is now open.

Tooling like one click recommendations, which is now up to 3000 brands.

Just launched AI landing pages, which are now broadly available to brands and then what whats going to build on top of that everything that we're doing on our home platform is just the AD ecosystem that we're building and the foundation that we've been building throughout the last couple of years.

<unk> adds is going to be a big part of our growth engine longer term right again, we're up to 240 carrot odd partners today, So we're extending our existing tech and demand onto all of these retailers' sites and we're continuing to launch more.

Thanks so much for taking the questions. Um, Chris, you mentioned in an earlier response the path to 4% to 5% take rates for ads. Can you just walk us through the path there? Is that on platform or do carrot ads need to grow larger for you guys to be able to reach that target? Any help there would be great. And then, is there any update you guys can provide in terms of Instacart Plus? We haven't talked about that this quarter. What's new? What's changing? Um, kind of what's the plan to grow penetration? Thank you.

Chris Rogers: It has been and continues to represent a majority of activity on the platform. Last but not least, I think I would just say that they are more engaged and have higher retention than non-Instacart Plus. That's why we continue to look for ways to make the Instacart Plus membership even more valuable. You've seen us add subscriptions like New York Times Cooking. You've seen us add restaurants, free delivery on restaurants over the course of the last year. You can expect us to continue to find ways to make the membership even more valuable and drive continued penetration of the membership. Thank you. Thank you. The next question comes from Jason Helfstein with Oppenheimer. Your line is open. Thanks. Two questions kind of related.

And then adds on keeper is we believe very promising we again, we've just launched ads on <unk>, where we're at 20% of stores, having keep our cards and we believe that that's going to be a very exciting use case in store use case actually I think it's one of the most exciting omnichannel advertising use cases that exist.

Today, because we have the ability to target customers and worked with work with retailers to deliver personalized ads in the store and so that is an exciting vector for US and then again, we're really pleased with the foundation that we've made with our platform partnerships this year and extending that to more partners, including Pinterest and and Tictoc.

Yeah, thank you for the question, Andrew. Um, again, I want to reiterate that we do believe, uh, we're very confident in our ability to achieve our long-term targets of 4 to 5%. But I do think it's going to come from a combination of things that are going to get us there. As a starting point, we're consistently innovating on platform with new formats and optimizations. We're building out new tooling like 1-Click recommendations, which is now out to 3,000 brands. Uh, we just launched AI landing pages which are now broadly available to brands. And then what, you know, what's going to build on top of that? Everything that we're doing on our own platform is just the ad ecosystem that we're building and the foundation that we've been building throughout the last couple of years.

So again when you take all of these it's not just one thing when you take all of the strategic pieces together.

Chris Rogers: I mean, as you're thinking about adding new Instacart Plus members, how much of the growth at this point is still like greenfield, meaning these are people who don't have, let's say, another subscription program? You can kind of answer that question however you want. Second, it seemed like this earnings season, we heard more commentary from some competitors about de-emphasizing large baskets and focusing more on small baskets, which seems like it will be positive for Instacart. If you want to elaborate maybe on some of the competitive dynamics you're seeing in the market around basket size, thanks. Sure. In terms of Instacart Plus, sorry, I think the first question was just around whether we think there is greenfield opportunity.

That's what's going to drive our long term growth, we're going to extend our high performance on platform that brand's Trust Trust.

Carrot ads is going to be a big part of our growth engine longer term. Right? Again, we're up to 240 karat, ad Partners today. So we're extending our existing Tech and demand onto all of these retailers sites, and we're continuing to launch more.

Trust our performance they trust our measurement and then we're taking all of that performance to all of these new surface areas, where we see real growth potential over the long term.

In terms of <unk>. So this continues to be a really critical part of our overall strategy. We are focused on doubling down on an integral plus because these are our best customers.

In terms of where we are today paid enterprise plus members continue to grow the engagement of those users as a percentage of our monthly users continues to deepen as that's something we'd like to see it has been and continues to represent a majority of activity on the platform and then last but not least I think I would just say that they're more engaged and have higher.

Chris Rogers: I mean, I think, look, the reality is we're focused on sort of our own product and service and what we're able to bring to the table. We know that our membership brings the best of grocery capabilities to users, as well as through our partnership with Uber Eats, a leading grocery selection. We've seen that be a really powerful combination. We haven't seen specifically any competitive impacts in terms of our ability to grow those users. Again, it's really about focusing on the suite of services we provide, which is far and away best-in-class grocery across selection, affordability, quality, and convenience, layering on the restaurant's capability, and then additional partnerships. The other things that we try to do is continue to make that membership more valuable, things like we extended family accounts to three members.

Our retention in the non energy plots and Thats why we continue to look for ways to make the inter car plus membership even more valuable you've seen us add.

Subscriptions like New York Times cooking, you've seen us add restaurants free delivery on restaurants over the course of the last year. So you can expect us to continue to find ways to make the membership even more valuable and drive continued penetration of the membership.

Um, and then adds on Caper is, you know, we believe very promising. We again we've just launched ads on. Caper at Wakefern, where we're at? 20% of stores having Caper carts and we believe that that's going to be a very exciting use case in store. Use case, actually, I think it's 1 of the most exciting Omni Channel advertising use cases that exists today because we have the ability to Target customers and work with work with retailers to deliver personalized ads in the store. And so that is an exciting Vector for us. And then again, we're really pleased with the foundation that we've made with all platform Partnerships this year and extending that to more Partners including Pinterest and, and Tik Tok. So again, when you take all of these, it's not just 1 thing. When you take all of these strategic pieces together, that's what's going to drive our long-term growth, we're going to extend our high performance on platform that Brands. Trust trusts, they they trust our performance, they trust our measurement and then we're taking all of that performance to all of these new surface areas where we see real growth.

Potential over the long term.

Thank you.

Thank you and the next question comes from Jason <unk> with Oppenheimer. Your line is open.

Thanks, two questions kind of related so I mean, as you're thinking about adding new in CCAR plus members how much of the growth at this point it felt like greenfield, meaning like these are people who don't have.

Chris Rogers: We have partnerships extended with programs like Chase United, their co-brand cards, the Chase Inc. cards with in-app monthly credits. We're continuing to find new ways to make these more valuable. We do think there's continued opportunity to grow our Instacart Plus membership base. Ultimately, that will drive growth for us. On your second question around small baskets versus large baskets and whether or not there's a trend, we aren't seeing an overall shift toward smaller baskets. 75% of the market's still in large baskets, $75 and above. As I mentioned, we're not seeing a shift in basket composition between the two. We're not seeing meaningful change in our AOV. I think it's possible that new entrants and new use cases are driving incremental small baskets online.

Another.

Okay option program.

And again, you can kind of answer that question. However, you want.

And then Jack in.

It seemed like this earnings season, we heard more commentary from some competitors about deemphasizing large batches baskets and focusing them on small baskets.

Which seems like it will be positive for rents.

The car, but just.

If you want to elaborate maybe on some of the competitive dynamics youre seeing in the market around basket size.

In terms of instacart plus so this, you know, continues to be a really critical part of our overall strategy. Uh, we are focused on doubling down on, on intergard plus because these are our best customers. Um, in terms of where we are today, paid intercourse, Plus members, uh, continue to grow the engagement of those users as a percentage of our monthly users continues to deepen. Uh, so that's something we like to see. Uh it has been and continues to represent a majority of activity on the platform. Um and then last but not least, I think. Um, I would just say that they are um, more engaged and have higher retention than non NC plus. And that's why we continue to look for ways to make the instacart Plus Membership. Even more valuable you've seen us add, um, subscriptions like New York Times cooking. You've seen us, add uh, restaurants free delivery on restaurants over the course of the last year. So you can expect us to continue to find ways to make the membership even more valuable and drive continued. Penetration of the membership.

Thank you.

Sure in terms of in CCAR, plus sorry, I think the first question was just around whether we think there is greenfield opportunity I mean, I think look the reality is we're focused on sort of our own product and service and what we're able to bring to the table and we know that our membership brings the best.

Inhaling with Oppenheimer. Your line is open.

Chris Rogers: I think those baskets are coming from the physical store, which is what we're seeing with the Amazon baskets. I'll also just point out that although we're exceptionally strong in large baskets, we do also participate in small baskets as well. We want to meet the needs of our customers regardless of where they shop. That's why we introduced things like $10 minimum basket, for example. We're successful in small baskets. As Emily mentioned, we drive efficiencies. We're also converting small basket users to large basket users at multiples times higher than others. Yes, we're not seeing an overall trend towards small basket, but it is an area that we also do well in. Thank you. Thank you. Due to the time, this does conclude our question-and-answer session for today.

Of grocery capabilities to users as well as through our partnership with Uber eats.

Um, thanks. Two questions, kind of related. So, I mean, as you're thinking about adding new Instacart Plus members, how much of the growth at this point is still like greenfield, meaning, like, either people who don't have, let's say, another...

A leading grocery selection and so we've seen that be a really powerful combination and we havent seen specifically any competitive impacts.

In terms of our ability to grow those is there. So again, it's really about focusing on the suite of services that we provide which is far and away best in class grocery across selection affordability quality and convenience.

Hearing on the restaurants capability and then additional partnerships and the other thing that we try to do is continue to make that membership more valuable things like we extended family accounts that remember as we have.

Subscription program. Um, you know, and again, you can kind of answer that question, however, you want. Um, and then second, um, it seemed like there's earnings, even we heard more commentary from some competitors about the emphasizing large back baskets, and focusing on more on small baskets, um, which seems like it'll be positive for, for instance, the car. But just, um, if you want to elaborate maybe on some of the competitive Dynamics, you're seeing in the market around basket size things.

Partnerships extended with programs like Chase United their co brand cards that chase in cards with monthly credit. So again, we're continuing to find new ways to make these more valuable.

Chris Rogers: I do want to thank you for participating, and this will conclude today's conference call. You may now disconnect.

But we do think there's continued opportunity to grow our <unk> plus membership base.

And again ultimately that will drive growth for us.

And on your second question around small small baskets versus large baskets, and whether or not theres a trend, we arent seeing an overall shift toward smaller baskets, 75% of the market for one large basket $75 and above and as I've mentioned, we're not seeing a shift in basket composition between the two we're not seeing meaningful change.

Sure, in terms of, um, instacart plus, uh, sorry I think the first question was just around whether we think there's Green Field opportunity. I mean, I think look, the reality is, you know, we're focused on sort of our, our own product and service and what we're we're able to bring to the table. And we know that our membership brings, uh, the best of grocery capabilities to users as well as, you know, through our partnership with with Uber Eats a, a leading grocery selection. And so we've seen that be a really powerful combination. And uh, we haven't seen, you know, specifically any competitive impacts uh in terms of our ability to grow those users. So again, it's really about focusing on uh the suite of services we provide which is Far and Away best-in-class growth.

In our <unk>.

I think it's possible that new entrants and new use cases are driving incremental small baskets online and I think those baskets are coming from the physical store, which is what we're seeing with the with the Amazon baskets.

I'll also just pointed out.

Although were exceptionally strong in large baskets, we do offer participate in small baskets as well.

Want to meet the needs of our customers, regardless of where they shop. That's why we introduced things like $10 minimum basket for example, and we're successful on small baskets as Emily mentioned, we drive efficiencies. We're also converting small basket users to large basket users at multiple times higher than others and and so yes, we're not seeing an overall trend toward small basket, but it is an error.

3, across selection affordability, quality and convenience, uh, layering on the restaurants capability and then additional Partnerships. Um, the other things that we, we try to do is continue to make that membership more valuable things. Like, you know, we extended family accounts to 3 members, we, uh, have Partnerships extended with, um, programs like Chase United, their co-brand cards, the, the Chase Ink cards with in-app monthly credits. So again, we're continuing to find new ways to make these more valuable. Um, but we do think there's continued opportunity to grow our instacart Plus Membership base. Um, and again, ultimately that will drive growth for us.

That we also do well in.

Thank you.

Thank you and due to the time. This does conclude our question and answer session for today and I do want to thank you for participating and this will conclude today's conference call. You may now disconnect.

And on your second question, around small small, baskets, versus large baskets. And whether or not there's a trend. Um, we aren't seeing an overall shift towards smaller baskets 75% of the Market's. Still in large baskets, 75 dollars, and above. And as I mentioned, we're not seeing a shift in basket composition between the 2. We're now seeing meaningful change in our aov. What what I I think it's possible that new entrance and new use cases are driving incremental small baskets online and I think those baskets are coming from the physical store which is what we're seeing with the with the Amazon baskets.

Um I'll also just point out that, you know, although we're exceptionally strong and large baskets, we do also participate in small baskets as well. You know, we want to meet the needs of our customers regardless of where they shop, that's why we introduced things, like ten dollar minimum basket, for example, and we're successful in small baskets. As Emily mentioned, we drive efficiencies, we're also converting small basket users

Just a large basket users at multiple times higher than others. And uh, and so yes we're not seeing an overall trend towards small basket, but it is an area that we also do well in

Thank you.

Thank you and due to the time this does conclude our question and answer session for today, and I do want to thank you for participating. And this will conclude today's conference call, you may now disconnect