SAN FRANCISCO - Instacart (NASDAQ: NASDAQ:CART) and Foodsmart have reported that their joint Foodcare program, integrating telenutrition services with grocery delivery, has led to improved health outcomes for individuals with obesity and diabetes. Over a two-year period, the program has demonstrated increased member engagement and clinically significant health improvements among its participants.
The combined service, available to health plan members, offers personalized dietary support and access to medically-tailored groceries through Instacart. This approach has been shown to nearly double the engagement of members in comparison to those using only telenutrition services. According to the data, 52.9% of members with diabetes achieved a meaningful reduction in Hemoglobin A1c levels, a key marker of diabetes management.
Furthermore, the program has been effective in supporting sustained weight loss. Nearly half of the participants living with obesity achieved at least a 5% weight loss at 21 months, a nearly 50% increase over those who only received telenutrition services. Additionally, an 8.6% improvement in nutrition scores was observed among those using both telenutrition and grocery delivery, suggesting better dietary habits.
Sarah Mastrorocco, Vice President and General Manager of Health at Instacart, highlighted the significant role of accessible, medically-tailored groceries in healthcare. Dr. Jason Langheier, CEO and Founder of Foodsmart, emphasized the program's potential to reduce chronic disease outcomes and healthcare costs across the United States.
Instacart, a major grocery technology company, partners with numerous retailers to offer online shopping and delivery services across North America. Foodsmart, the largest telenutrition provider in the U.S., offers a platform for personalized nutrition counseling and meal planning.
The findings from this partnership are based on a retrospective analysis of over 18,500 members, indicating that integrating telenutrition with practical tools like online grocery shopping can lead to lasting health improvements. The full results and implications of the program are detailed in a white paper released by the companies. This news is based on a press release statement.
In other recent news, Instacart reported a Gross Transaction Value (GTV) of $8.2 billion and an EBITDA of $208 million. The company repurchased $117 million worth of its shares from D1 Iconoclast Holdings LP and expanded its Board of Directors with the appointment of Mary Beth Laughton, an experienced leader from Nike (NYSE:NKE) and Athleta LLC. Instacart also formed a strategic partnership with Family Dollar, enabling customers to use the Supplemental Nutrition Assistance Program (SNAP) Electronic Benefit Transfer (EBT) for online orders.
In analyst coverage, Jefferies initiated a Hold rating on Instacart, balancing the company's favorable exposure to the online grocery sector with challenges such as competition and unclear profit projections. Morgan Stanley cut Instacart's price target from $45.00 to $41.00, citing challenges in expanding its advertiser base. Raymond James initiated coverage with a Market Perform rating, while Cantor Fitzgerald started coverage with an Overweight rating and a price target of $45.00, highlighting Instacart's strong position in the online grocery market.
These recent developments reflect the evolving landscape of the online grocery market and the strategic moves of Instacart as it navigates this dynamic environment.
InvestingPro Insights
Instacart's innovative Foodcare program with Foodsmart aligns well with the company's strong market position and financial health. According to InvestingPro data, Instacart boasts a market capitalization of $10.99 billion, reflecting its significant presence in the grocery technology sector. The company's revenue growth of 10.69% over the last twelve months and an impressive 14.94% growth in the most recent quarter underscore its expanding market share and the success of initiatives like the Foodcare program.
InvestingPro Tips reveal that Instacart holds more cash than debt on its balance sheet, indicating financial stability that could support further investments in health-focused initiatives. Additionally, the company's liquid assets exceed short-term obligations, providing the flexibility to pursue innovative partnerships and programs.
The success of the Foodcare program could contribute to Instacart's future profitability. While the company is not currently profitable, InvestingPro Tips suggest that analysts predict profitability this year. This optimism is further supported by the fact that four analysts have revised their earnings upwards for the upcoming period.
Instacart's impressive gross profit margin of 74.95% demonstrates its ability to maintain pricing power and efficiency in its operations, which could be crucial for sustaining programs like Foodcare that require significant resources and partnerships.
For investors interested in a deeper analysis, InvestingPro offers 7 additional tips for Instacart, providing a more comprehensive view of the company's potential.
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