Instacart to phase out Caper Cart business

Instacart announced it will wind down its Caper Cart business, shifting investment toward software, data and artificial intelligence for in-store operations.

The company said retailer adoption of the smart carts has not grown quickly enough to justify continued spending, prompting a review of progress and required resources over the past several months.

Caper carts were designed to guide shoppers through aisles and let them scan items as they moved, offering a hands-free checkout experience.

Instacart stressed the decision does not signal a retreat from in-store innovation; instead it will concentrate on software and data tools that help grocers and consumer-packaged-goods firms monitor conditions, manage inventory and improve merchandising.

Current offerings include FoodStorm, an order-management system for prepared foods, Carrot Tags for electronic shelf labels, and In-Store Mode, a digital shopping feature available through the Instacart app and partner retailer apps.

The firm also provides Store View, which uses computer vision to analyze video captured by Instacart shoppers, and Inventory Intelligence software that delivers shelf visibility, merchandising analysis and demand forecasting.

Retailers are increasingly favoring scalable digital solutions that can be deployed across many locations, a trend that aligns with the pivot toward data-driven services rather than hardware installations. This shift allows grocers to roll out new capabilities without the logistical burden of physical carts.

Instacart described its broader strategy as building a connected system for online and physical grocery operations, allowing retailers and brands to use data from across the platform to manage their businesses.

The company did not provide a timeline for winding down Caper Carts or details about how the decision would affect employees, retailer customers or existing cart deployments.

Instacart’s move comes as it evaluates strategic options, including a possible sale. The delivery specialist was previously said to have discussed a sale to Uber, but those talks have since broken off, according to reports. Instacart has also hired an investment banking company to evaluate its options, and has discussed selling itself to DoorDash as it explores its strategic options.