Instacart Acquires AI-Powered Pricing Platform Eversight
Grocery delivery service Instacart has acquired Eversight, an AI-powered pricing and promotions platform, making it easier for retailers to offer optimized pricing on private label products.
Founded in 2013, Eversight brings CPG brands and retailers technologies custom-made for the grocery industry, enabling brands and retailers to unlock optimal promotions and pricing that increase sales. Through Eversight's AI-powered, experimentation-based platform, CPG brands and retailers can continuously test customized pricing and promotions directly with their individual customers, an alternative to a traditionally manual process.
The partnership will allow retailers to drive sales of own brand products even further with optimal prices during an inflationary period.
"Giving everyone access to the food they love is core to Instacart's mission, and when it comes to grocery shopping, we know that every dollar matters. With higher inflation and the average cost of groceries up, we're taking even more steps to make food and daily essentials more affordable," said Fidji Simo, CEO of Instacart. "By combining Eversight's leading pricing and promotions capabilities with Instacart's world-class teams and technology, we're positioned to deliver even more value to our brand and retail partners, while also creating more opportunities for customers to maximize their savings both in-store and online."
In the announcement for the acquisition, Eversight cites the example of a CPG brand partner who was looking to improve an in-store promotion's performance and wanted to make it more effective, but was concerned about the risks that come with trialing new offers in-store. With the help of Eversight, the brand was able to quickly make adjustments to the promotion, resulting in 10% incremental unit sales growth. The CPG replaced more than 100 weeks of the old promotion with the new offer.
In another instance, a retail partner wanted to improve their customer pricing perceptions without sacrificing their business performance. In just five weeks of price experimentation, Eversight helped identify new price points that resonated with customers across 30 categories, leading to a 6% margin lift.
"We founded Eversight to help brands and retailers be more agile and consumer-centric with their pricing and promotions decisions. This is particularly critical in today's high inflation environment, with rapidly changing shopping behavior," said David Moran, Co-founder and Chairman of Eversight. "By joining Instacart, this technology can be scaled across online and offline pricing to help make buying groceries more affordable for everyone while also driving more value for CPGs and retailers. We're excited about our future together, as we build towards becoming one of the most strategic, valued technology platforms for our partners."
Instacart partners with more than 900 national, regional, and local retail brands to facilitate online shopping, delivery and pickup services from more than 75,000 stores across more than 13,000 cities in North America.