Instacart is planning its IPO, and I am sure there are many people with many questions on this. The firm is already preparing by cutting costs, which was expected after it slashed its valuation. But this is not a finance newsletter, so I would like to focus on the operational aspects.
I really enjoyed reading your posts, illustrating how operations works in practice with concrete examples, great work, Gad!
Working in this same industry i believe is a journey of transformation between traditional retailers that do not have the correct tech & human infrastructure to sincronize their systems on time with the new super apps. A big challenge that will be tackle in the same way their mix between in person and app orders is shifting. Also interesting that the "scarcity bias" works in an opposite way during the experiment, i have test on the other way and prove that the purchase intention increase when the user see "ULTIMAS PIEZAS or SÓLO 5 DISPONIBLES" in the app.
It is interesting to observe that even players like Amazon, who fulfill from their own warehouses, report stock-outs on website/app. Have always wondered why to even call this out, lest the customers are dissuaded. I would imagine the case of mis-information regarding inventory is much lesser in case of more controlled environment of Amazon.
I think there's also the "premise" of the app--there's this asian grocery delivery called "Weee!" that does stock out really well, and limited stock items are snatched up quickly. But it's because the whole idea of the app is to push hard-to-find asian grocery items, so the expectations of the consumer is aligned. Whereas instacart for me is for staples, and stock outs are kinda annoying.