Last year, it seemed like Instacart was the only game in town when it came to online grocery services that deliver carrots, crackers and soda on behalf of established bricks-and-mortar stores. But that is set to change, according to projections by eMarketer, which forecasts that Instacart’s dominance will wither over the next few years as Uber and DoorDash invade its turf.
In 2020, Instacart held an estimated 84% share of the U.S. market for the companies that operate as delivery intermediaries for grocers such as Wegmans and Kroger, according to eMarketer, which is part of the research firm Insider Intelligence. But as the chart above shows, by 2023 that share is projected to drop to 68%. Uber and DoorDash, meanwhile, are among those expected to divvy up most of the remaining market.
The forecasts—which don’t include grocery retailers like Walmart and Amazon that handle their own deliveries—underscore why Instacart recently held merger discussions with DoorDash and partnership discussions with Uber.