Maplebear (CART) Morgan Stanley Technology, Media & Telecom Conference summary

Strategic priorities and business model

• Deep retailer relationships and integrations drive innovation and efficiency, supporting long-term margin goals.

• Profitability has improved for three years, with ongoing reinvestment in growth and operational flexibility.

• Seasonality affects profit shape, with Q4 strong in ads and Q1 typically lower, but overall EBITDA expected to build through the year.

• Order frequency and average order value (AOV) are both contributing to growth, with restaurant expansion and reduced basket size boosting engagement.

• Instacart Plus membership is growing faster than overall users, with members showing higher engagement and retention.

User growth and engagement

• Marketing investments, including high-profile campaigns and partnerships, drive both new user acquisition and engagement of existing users.

• 2024 user cohort is larger and more engaged than pre-pandemic, with marketing also stabilizing the existing base.

• Partnerships, such as with Uber, add restaurant options, aiming to increase platform engagement and grocery order frequency.

• Pricing initiatives, like lower minimum basket and free pickup, target a broad income demographic and diverse use cases.

• Instacart Plus members account for the majority of GTV, spend more, and adopt new features more readily.

Technology, AI, and operational efficiency

• Best-in-class found and fill rates are achieved through deep retailer integrations and real-time data from Shoppers.

• AI tags catalog items for dietary preferences, enhancing personalization and shopping experience.

• AI-driven features like Ask Instacart and third-party integrations aim to create a seamless, agent-like shopping experience.

• Advertising business benefits from AI by serving more relevant ads and increasing auction density.

• GenAI and centralized AI infrastructure accelerate product experimentation and code deployment, boosting efficiency.