Instacart is Relying on Smart Shopping Carts in Europe

The American grocery delivery service Instacart is taking its first international step outside the USA and Canada with its smart shopping carts, known as Caper Carts. This new initiative aims to lay the foundation for growth beyond its core grocery delivery business. The Caper Carts, equipped with self-scanning options, cameras, and sensors, are being deployed for the first time in an ALDI Süd supermarket in Sattledt, Austria. The smart technology was launched through a $350 million acquisition in 2021 and is already in use in stores of Kroger and Wakefern Food Corp.'s ShopRite and Fairway Market in the USA and Canada. David McIntosh, Vice President and General Manager of Connected Stores at Instacart, sees great opportunities in making the shopping experience more exciting and less mundane. Instacart is in talks with other European and international retailers to roll out the Caper Carts more widely in the future. Due to the slowed growth in its domestic delivery business, Instacart is increasingly focusing on higher-margin advertising and enterprise products, which now account for around 30% of its annual revenue. The company aims to position itself as a technological partner for brick-and-mortar stores. According to Instacart, customers who shop both online and in-store generate two to four times higher revenues than in-store-only buyers. The use of the Caper Carts is possible without an Instacart account, facilitating their introduction in markets where delivery services are not offered. Instacart thus competes with rivals like DoorDash and Uber Technologies, which also serve international markets. Instacart's international ambitions are currently focused exclusively on the Caper Carts, McIntosh explained. By introducing these smart shopping carts, the company aims to lay the groundwork for spreading its leading technology in other countries. The smart shopping carts are part of Instacart's Connected Stores portfolio, which also includes fulfillment tools for faster pickups and personalized recommendations and discounts. As part of an expanded partnership, ALDI will also implement other Instacart in-store technologies in the USA, such as electronic shelf labels to facilitate order processing.