Grocery delivery company Instacart is going public.
The San Francisco-based company filed paperwork Friday with the U.S. Securities and Exchange Commission. The IPO is expected to happen in the next few weeks.
Instacart said it plans to trade on the NASDAQ stock exchange under the stock symbol “CART.” The number of shares and the price haven’t yet been determined, the company said.
The IPO is a long-awaited step for Instacart, which was founded in 2012. The company filed privately for an IPO in May 2022 but delayed those plans last fall when the markets were roiling due to recession fears. There were just 71 IPOs in the U.S. last year, the lowest number since 2009, according to Renaissance Capital.
But a resurgent market is seeing more IPO activity this year. Fifty-two IPOs were held in the first half of this year, Renaissance Capital said. Renaissance said Instacart could raise up to $1 billion with its offering.
Founded in 2012, Instacart provides delivery from 85% of U.S. grocers. The company says it has 7.7 million active customers who spend about $317 per month on Instacart.
In its IPO filing, Instacart said its orders grew 18% between 2021 and 2022 to 262.6 million. But that order pace has slowed this year. In the six months ending June 30, Instacart’s orders were up less than 1% to 132.9 million.
Instacart faces pressure from a number of competitors, especially as consumers look for ways to cut costs in a time of high food price inflation. In July, Instacart controlled 22% of U.S. online grocery sales, according to YipitData, a market research firm. That was down from 27% in the same month a year ago. Walmart controlled 62% of the market, up from 54% last year.
Third-party apps like DoorDash and Uber Eats are also growing quickly in the grocery sector.
Still, Instacart’s revenue was up 31% to $1.47 million in the first six months of this year. That’s largely due to increases in advertising fees Instacart collects from retailers and food companies.