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Chronicles

The story behind the story

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Source: Instacart generated ~$740M in 2022 ad revenue, up 30% YoY; nearly 30% of the company's 2022 revenue came from its ads unit, which launched in 2019

(disclosure: I seeded instacart in 2012)  —  https://www.theinformation.com/ ... Tweets: Tanay Jaipuria / @tanayj : Great read on Instacart's business by @coryweinberg - $2.5B in total revenue in 2022 - $180M in adj EBITDA - 30% of revenue comes from ads, much higher than that of peers https://www.theinformation.com/ ... [image] Cory Weinberg / @coryweinberg : ~$740M, or 30% of Instacart's 2022 revenue, came from selling advertising rather than actually delivering groceries. That bolsters its profits. Will it cause problems with customers & grocery retailers? Big question facing the everlasting IPO contender: https://www.theinformation.com/ ... Patrick McKenzie / @patio11 : I don't know how many times we're going to learn the lesson “If you're a platform business and can direct incremental demand then charging for that is a very, very good business to be in.” https://twitter.com/... Teddy Blank / @teddypowday : Instacart: - doing $740m in ad revenue (+30% YoY, extremely high-margin) - ~$2b total revenue - ~10m active users - struggled to raise at $10-12b Tells you everything you need to know about how horrendous the unit economics must be on the delivery biz https://twitter.com/... Amir Efrati / @amir : Instacart is “basically an advertising company.” https://www.theinformation.com/ ... by @coryweinberg ft. @tanayj [image]

The Information Cory Weinberg