Instacart has priced its IPO at $30 per share, raising $660 million for the grocery delivery service
The price was at the high end of a previous range estimated by Instacart, reflecting renewed confidence in technology stocks after last week's successful initial public offering of Arm Holdings, a British chip designer.The price gives Instacart a market value of around $10 billion. That's far less than the $39 billion valuation the company announced in early 2021.According to YipitData, a market research firm, Instacart is the market leader among third-party grocery delivery services. But it faces growing competition from others, including DoorDash and Uber Eats. It also competes with major grocers like Walmart that offer their own delivery.Instacart offers delivery and pickup at 85% of U.S. grocers or more than 80,000 stores, leveraging a network of 600,000 freelance shoppers. The company also offers in-store technology such as smart shopping carts and electronic shelf labels and sells online ads to grocery companies and retailers.The company says it has 7.7 million active customers who spend about $317 a month on the platform.