Instacart Teams Up With Vroom Delivery For Carrot Ads Rollout

Instacart (CART) announced on Thursday a new partnership with Vroom Delivery, an e-commerce platform for convenience stores, to bring Instacart Carrot Ads to its network of 3,500 convenience stores nationwide.

Shares of Instacart, formally known as Maplebear, were down 3% in early trading. The retail user message count on the stock jumped 250% in the last 24 hours on Stocktwits.

Carrot Ads is a retail media solution from Instacart that enables partners, such as grocers, marketplaces, and commerce platforms, to build or grow their own retail media businesses. Retail sentiment on Instacart improved to 'neutral' from 'bearish' territory, with message volumes at 'normal' levels, according to data from Stocktwits.

Instacart said that Vroom Delivery's convenience retailers across the U.S. will have access to the grocery delivery firm's advertising technology, enabling advertisers to reach more consumers through Sponsored Product and Display ads.

The company said that through this partnership, Vroom Delivery's convenience store partners will join the Instacart Ads ecosystem. Vroom Delivery's partnership with Instacart expands its efforts to help small- and medium-sized convenience retailers tap into advertising demand.

With this new integration, Instacart said that over 7,500 brand advertisers participating in its ecosystem will soon be able to extend their Instacart campaigns to Vroom Delivery's network of convenience store retailers, helping to drive discovery and create more personalized product recommendations. 

Retail media is a highly profitable business in the current economy, with many major retailers such as Amazon, Walmart, and Target developing their own in-store and digital media networks, helping them earn advertising revenue from leading food brands and consumer goods manufacturers.

“Retail media is evolving quickly, and Vroom Delivery's decision to adopt Carrot Ads is a testament to the strength of our ad technology. We're building Carrot Ads to be the most advanced retail media solution in the industry – designed to help e-comm partners move quickly and unlock the full potential of retail media,” said Alice Luong, Instacart Senior Director of E-Commerce and Retail Media.

Shares of Instacart have risen over 9% this year and gained 25% in the last 12 months.

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