NERA Research Shows Instacart is Directly Responsible for Driving 186,000 Incremental Grocery Jobs, $6.4 Billion in Additional Revenue for Grocers
New research released today shows the unique and significant positive economic impact Instacart, the leading online grocery platform in North America, has had on the U.S. grocery industry. This new comprehensive analysis by Dr. Robert Kulick of NERA Economic Consulting quantifies for the first time ever the increases in U.S. grocery jobs and revenue directly linked to Instacart since the company started to scale its operations.
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The study finds that Instacart created approximately 186,000 additional jobs in the U.S. grocery industry and increased total grocery revenue by $6.4 billion from 2013 through the second quarter of 2020. That includes approximately 116,000 jobs in the U.S. grocery industry—representing 70% of net grocery job creation—and $2.9 billion in additional grocery revenue before the pandemic began (between 2013 and 2019).
“Instacart has been a catalyst for the U.S. grocery industry both before and during the pandemic,” said Dr. Robert Kulick, Associate Director, NERA Economic Consulting. “This analysis shows that, from its inception, Instacart has driven significant increases in U.S. grocery employment and revenue, and that during the COVID-19 pandemic, these effects have become even more pronounced. This ‘Instacart Effect’—the causal relationship between Instacart’s growth and the growth of the grocery industry—is a national phenomenon benefitting retailers, workers, consumers, and local economies.”
Instacart’s impact during the COVID-19 pandemic has been even more profound, the study shows. During the early months of the pandemic (Q1-Q2 2020), Instacart increased retail grocery employment by approximately 70,000 jobs—accounting for 92% of new grocery job creation during the height of the pandemic—at a time when many retail segments were ailing. During that same period, Instacart generated $3.5 billion in additional revenue for grocers.
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“Instacart is proud to serve as the leading retail enablement platform for brick-and-mortar grocers across North America. Our job is to ensure retailers can serve their customers online, reach new customers, grow their businesses, and expand the incredibly important impact they make in the communities they serve,” said Carolyn Everson, President of Instacart. “This new study confirms what we hear every day from our retail partners—that Instacart gives them a distinct edge in this new era of accelerated e-commerce adoption and competition. The grocery industry plays such a vital role in all our lives, and we’re committed to continuing to help retailers of all sizes create jobs and unlock new growth opportunities for many years to come.”
Using rigorous statistical methods and analyzing data from across all 50 states and Washington D.C., the study demonstrates a robust relationship between Instacart adoption in local markets and grocery employment and revenue growth in the grocery industry. As more grocers turn to Instacart to help them compete, the results show, Instacart helps bolster retailer growth, create jobs, and enhance the ability of the industry to respond to rapid changes in demand.
