Coronavirus boosts Instacart sales, makes grocery app profitable for first time
Instacart is expected to make a net profit of $10M in April
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Instacart has become profitable for the first time, according to recent reports.
The grocery delivery app is expected to make a profit of $10 million in April after selling $700 million worth of groceries in the first two weeks of the month, according to Eater.
On Monday, The Information first reported Instacart’s expected net profit for the month, saying the sales in the first two weeks of April are up by 450 percent compared to sales in December.
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Last year, Instacart reportedly lost a total of $300 million, Forbes reported.
Instacart is expected to make a net profit of $10 million in April, according to a report from The Information. (Instacart)
The company’s success is due to an increased demand for grocery delivery as people try to stay inside during the coronavirus pandemic, according to the website.
Instacart did not comment on its finances but did tell FOX Business it is focusing on “safely serving its shoppers and customers” during the pandemic.
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Last week, Instacart announced it would hire 250,000 shoppers -- after already hiring 300,000 new shoppers.
Those positions are focused in California, Massachusetts, New York, Pennsylvania, Washington, D.C., and Toronto -- “areas with the highest demand right now,” according to the announcement.
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In the same announcement, Instacart also said it would implement additional safety measures, including performing daily wellness checks for shoppers through its app and making it easier for shoppers to request a free health and safety kit -- which would include face masks and hand sanitizer.
The company said it will also offer an extension to its sick pay policy, which provides up to 14 days of pay for any full- or part-time employees who are directly or indirectly impacted by the coronavirus. The policy will be extended through the duration of the pandemic.