Instacart reduces valuation by 40%

Signalling more trouble in the quick-delivery market, US fast-delivery giant Instacart has cut its valuation by 40% to around US $24bn (GBP £16bn).

The privately owned delivery giant had itself valued at close to $40bn in 2021 in a $265m funding round, but this was during the pandemic delivery boom that has since slowed considerably. Rather than investors valuing the firm this time, Instacart had a fair market value study carried out by an independent firm, according to a source speaking to Reuters. The source added that the firm had not raised any new funds on this valuation.

A number of publicly listed fast-delivery companies have seen their share valuations fall in recent months as investors get impatient for them to stop being loss-making and to start making profits.

“We are not immune to the market turbulence that has impacted leading technology companies – both public and private,” said an Instacart spokesperson.

The updated valuation, according top Instacart, to help it attract and retain more talent in an already tight US labour market. It will issue more shares to employees at a lower price as incentives to continue working with them.

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