With the acquisition, Instacart aims to solidify its retail technology capabilities. Here are the top-line bullets you need to know.
Who are the parties to the deal?
- Caper AI: New York-based Caper AI develops AI and computer vision-enabled autonomous retail technologies for retailers to facilitate contactless checkout and streamline the shopping experience for their customers. Through its products, Caper Cart and Caper Counter, Caper AI caters to a varied range of businesses including convenience stores, cafeterias, book stores, and cosmetic stores. The platform recognizes products in the cart based on a database of over 20M images to automate the checkout process. The company has technology development deals with Kroger, Wakefern, Sobeys, and Auchan.
- Instacart: California-based Instacart offers same-day delivery of groceries, including fresh food items, to its customers in the US and Canada. The company operates in more than 5,500 cities in North America and has a network of over 600 retailers operating from 55,000 stores. Its partners include Kroger, Costco Canada, Heinen’s, Publix, Sprouts, ALDI, The Fresh Market, Walmart Canada, and Wegmans, among others.
Source: Caper AI
Why does the market matter?
Instacart wants to strengthen its capabilities in the AI-powered checkout market, where:
- The global AI-powered checkout market is projected to grow at a CAGR of 37.2% to reach a value of $1.2B by 2027, according to The Insight Partners.
- Technological advancements, increasing demand for contactless technology during the pandemic, rising adoption of AI and sensors, and reduced labor costs have contributed to industry growth.