Many businesses saw their company value gain tremendous growth during the pandemic. Yes, that did happen. But the COVID boom is slowing down. One such company facing this reality is the grocery delivery start-up, Instacart.
- DoorDash stock fell 56% from its November 2021 high.
- Shopify stock also dropped 60% over the same period.
A third-party consultant did the valuation using the 409A estimate process.
“We are confident in the strength of our business, but we are not immune to the market turbulence that has impacted leading technology companies both public and private. We can’t control the market, but we can control how we respond….We announced to our team that we will be aligning new equity awards—for existing employees and new hires—to an updated company valuation that reflects the current market conditions. Our team built Instacart into the market leader it is today, and we believe investing in them is the right thing to do. Markets go up and down, but we are focused on Instacart’s long-term opportunity to power the future of grocery with our partners.”
Despite the devaluation, Instacart announced plans to expand beyond grocery delivery. The company's expanded services will include advertising offerings and software analytics for supermarkets. The new brand got named Carrot. What's more? The brand also plans to offer speed delivery for fulfillment centers.
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