The companies have not disclosed the financial details of the deals, but as part of the acquisition, Instacart with an order management system for end-to-end order-ahead and catering services that will integrate into its enterprise grocery eCommerce solutions.
“Our goal is to help our retail partners increase their sales and ensure more of their customers’ everyday meals come from the grocery store. That’s why we’re excited to welcome the talented FoodStorm team to Instacart and integrate their end-to-end, order-ahead, and catering platform into Instacart’s leading enterprise offering,” said Instacart’s Chief Technology Officer, Mark Schaaf.
The addition of FoodStorm’s technology follows demands by retailers to make order management of prepared foods, custom items, and catering more efficient, Schaaf said in an interview. “Retailers want to bring their entire catalog of products and services on their marketplace, which more and more is prepared foods or things like sushi or birthday cakes,” he said.
Based on customer behavior on its grocery platform, Instacart reports that order-ahead technology solutions provide grocery retailers with a significant growth opportunity. On the Instacart platform, customers who purchase prepared foods and catering items like hot and cold side dishes, cakes, and sushi from the grocery store have significantly larger baskets and shop more frequently than those customers who do not, says the company.
“This is a huge growth opportunity for grocers, and we’ve seen increased demand for our products as more customers are searching for seamless online and in-store ordering capabilities,” said FoodStorm CEO Rob Hill. “Grocery is an incredibly complex retail category, making the need for enterprise-grade solutions like FoodStorm and Instacart critical to the long-term success of the industry we all rely on to put food on our tables. We’re excited about this next chapter as we join the Instacart team and create new ways for retailers to serve the ever-changing needs of their businesses and customers.”