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Grocery delivery provider Instacart began trading publicly this week (as CART) at the valuation of $9.9 billion, rallying lower on its second day. The company’s entrance into the market is being closely watched, as it’s one of the biggest companies to list in nearly two years. Depending on performance, that could represent a resurgence for companies seeking IPOs.
The question is, does Instacart’s public debut have any impact on consumer perceptions? Recent CivicScience data show that 18% of U.S. adults have experience using Instacart, with 8% saying they haven’t yet used it but are interested. New polling data collected the day of the company’s Nasdaq listing indicate that consumers are opinionated on the matter. A little over half of Instacart users and intenders are unlikely to be influenced in either direction by the new public status, saying they are ‘just as likely to use’ the app. However, 46% report they are likely to change their usage of the app, with those less likely to use it outweighing those more likely to, by 2 to 1.
Data show users and intenders aged 18-24 over-index as being less likely to use the Instacart app now that it’s public (37%), followed by users and intenders aged 25-34 (31%). On the other hand, the 35-54-year-old audience is the most likely to continue using (or planning to use it) as usual (60%).
What’s behind the negative reaction? Concerns about sharing user data may play a role. CivicScience data show that Instacart users and intenders who say they’re less likely to use the app harbor greater concern over the protection of personal data by large technology companies, compared to those who are more likely to use the app. In fact, nearly 4-in-10 of those who report they’re more likely to use Instacart report a high level of trust in tech companies like Google and Apple to protect consumers’ personal privacy.
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