Maplebear Inc.

$187 million, which increased by $102 million year over year, primarily driven by strong operational performance. In Q3, we repurchased $67 million worth of shares and ended the quarter with approximately $1.9 billion in cash and similar assets on our balance sheet. Stock-based compensation in Q3 was $82 million, down $24 million quarter over quarter, largely due to just over $20 million in expected reversals tied to executive departures in the period. In Q4, we expect stock-based compensation to normalize and be more in line with Q2 2025 levels. Now for our Q4 outlook. We anticipate GTV to range between $9.45 to $9.6 billion. This represents year-over-year growth between 9% to 11% with orders growth expected to outpace GTV growth. It also reflects strong customer demand in October, continued momentum from landing and expanding enterprise partnerships, and is partially offset by the impact of a variety of EBT SNAP funding scenarios. We expect advertising and other revenue to grow 6% to 9% year over year. This reflects ongoing strength from emerging and mid-sized brands, partially offset by some large partners adjusting spend as they manage macro uncertainty and changing consumer trends. While this creates near-term pressure, the fundamentals of our ads ecosystem remain stronger than ever. With our performance, reach, and diversification, we are confident in returning advertising leather revenue to double-digit growth in 2026 and meaningfully growing this part of our business over time. We are also guiding to Q4 adjusted EBITDA of $285 to $295 million, reflecting our commitment to disciplined execution and steadily increasing profitability. In summary, we delivered a great Q3 and our momentum continues to build as we look to finish 2025 strong. As a clear category leader operating at tremendous scale and driving efficiencies, we're taking a disciplined but aggressive approach to investing to further accelerate our growth and advance the broader industry. To underscore our confidence in long-term value creation, we authorized a $1.5 billion increase to our share repurchase program, bringing our total capacity to $1.65 billion as of this morning. We plan to enter into a $250 million accelerated share repurchase program while continuing to opportunistically repurchase shares. With that, we'll open up the call for live questions. Operator, you may begin.

Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. And as a reminder, please limit yourself to one question and one follow-up so that we will have enough time to address everyone's questions. And the first question is going to come from Eric Sheridan with Goldman Sachs. Your line is open.

Thank you so much for taking the question. Maybe just to dovetail with the comments and all the details in the material so far today, if you had to isolate what you see as some of the biggest strategic investments you want to make across your technology stack, growing supply or aggregating demand, how should we think about what those key investments are? to build the types of growth narratives you're talking about today. Thank you.

Thank you, Eric, for the question. As you can see from our Q3 results, the business is in good shape. We have momentum. We've been driving consistent growth, seven quarters of double-digit growth with consistent EBITDA expansion. So considering the strength of the core business, I'm not coming in and rewriting our entire playbook or making dramatic changes to our underlying vision and strategy. It's going to be fairly consistent. That said, I have started to outline various focus areas that I strongly believe can help us accelerate into the next chapter. There's three of them. One of them is affordability. We know that affordability is the number one reason why people turn off of the platform. We also think it's a barrier to customers placing their first order. So we've made some significant traction with some of our largest affordability issues, like loyalty integrations with retailers, the weekly flyer integrations that we've been doing. But we do believe that there's more we can do with retailers, including working with retailers on their own pricing strategy, including having conversations about price parity on the platform. The second area you're going to see us continue to invest in is to accelerate enterprise even more. I continue to see significant opportunity to accelerate our enterprise platform based on everything I hear when I talk to retailers. And even though we're already over 350 e-commerce storefronts, there is more room here for us to sign and launch a lot more retailers across North America, and I also see this opportunity to expand outside of North America for the first time in a real way. And once we've landed with a retail partner, there's an opportunity for us to cross-sell with other partners like with Kapor Carts and with FoodStorm. And the final area that I want to highlight is ads and data. Our ads business is very strong and highly performant, and I plan to continue to invest to build an ad ecosystem that really innovates on-platform with our high-performing and strong measurement, off-platform through partnerships with Google and Meta and the Trade Desk and now Pinterest and TikTok, and then, of course, with Caridads, where we're now powering 240 ad partners. So I feel strongly that these are going to accelerate our business. And then as a tech company operating in the grocery space, we believe that we can do incredible things with AI together, both on our platform and together with our retail partners to accelerate even further. Thank you.

Thank you. And our next question will come from Colin Sebastian with Bayer. Your line is open.

Yeah, thanks and good morning. I guess two questions, one in a follow-up. On the AI solutions, Chris, I guess how should we think about the monetization model here and how are you using those deeper relationships to expand the marketplace side where there are an increasing number of options for consumers? And in terms of the acceleration you're expecting next year with an advertising, Emily, was maybe just hoping for a little more context around how much of that depends on the macro environment versus platform-specific initiatives and maybe opportunities with partners like TikTok and Uber Eats. Thanks.

Yeah, thank you, Colin. For the first part of the question about AI, I mean, it's still early days. We announced our launch last week. Again, we have seen, I have personally experienced that 100% of the retailers that I've spoken to so far are excited about this. So we do believe we're on to something. And I just think that it's basically going to be a collection of enterprise offerings that brings AI power capabilities to our retail partners all of our retail partners regardless of size, and it's gonna connect every part of the shopping journey from how products are discovered online to how shelves are stocked in stores. And so for retailers, and why we believe there's a monetization opportunity for us here, because it means things like smarter operations, it means better product visibility with the in-store view that we're creating and in-store intelligence. It means more personalized shopping experience for their customers. So we, you know, early days, very promising start out of the gate and we do believe that this is going to be something we can monetize over time and for the second part of the question on advertising um look i'll say i'll start by saying you know given the somewhat challenging macro that we're seeing we are very proud of our q3 results of plus 10 which was in line with our expectation and as we think about our guide for q4 six to nine percent and over ten percent for the full year we are awaiting several puts and takes across our brand partners. So on the one hand, we're seeing real ongoing strength from mid-market and emerging brands. We have seen strong growth from this cohort all year. And then on the other hand, some of our large brand partners are moderating their spend as they navigate a tougher macro environment. In addition, in Q4, we're up against some brands that leaned in heavily towards the end of last year. All of that said, I'm not satisfied with where we're guiding for Q4, and I'm focused on re-accelerating as another. I'm confident that we can return to double-digit growth next year, and I'm confident in our ability to achieve our long-term target of 4% to 5% of GTV. And this is because of the foundation that we've been laying over the past year with multiple irons in the fire. And I really believe it's a combination of things that are going to get us there. As a starting point, We are consistently innovating on platform, on-site, on Instacart, where we can attract larger and larger budgets by innovating and by being laser-focused on driving performance for brands. We have new formats, like the ones I mentioned, shoppable recipes and bundles, but we're also doing enhanced optimizations, including add relevant systems with LLMs, driving stronger sponsored product engagement and higher click-through rates. But in addition to everything that we're doing on-site, we're making significant progress across this ads ecosystem that I referenced. We're up to 240-carat ad partners. Again, that's where we power ad tech on our retailer websites like Hy-Vee, who recently launched, and on third-party marketplaces like Uber, grocery, and retail in the U.S. But we've also signed Broom Delivery, which is a convenience marketplace, and we just signed Bottle Caps, which is an alcohol marketplace. And we have a robust pipeline of other potential partners, which we think can contribute to long-term growth. We also recently launched ads on our caper carts with WakeFirm, where carts will soon be deployed at 20% of their stores. And we're also just very pleased with our off-platform partnerships. This is a foundational year for us on our off-platform with our newest partners, Pinterest, which we announced in Q2, and then TikTok in Q3, where we're the first end-to-end retail media partner to enable targeting and closed-loop measurement. So when you stack all of these pieces together, combining our high performance on our platform and then extending that high performance onto all of this new supply, we see real growth opportunity over the long term.

Thanks, Chris.

And the next question will come from Shweta Kajaria with Wolf Research. Your line is open.

Okay, thank you for taking my questions. Let me try two, please. One for Chris. and one for Emily. The new partnerships as well as international growth plans, can you please talk to both of those? One is how impactful do you think that the new partnerships can be in the near to midterm as well as where are you focused on for international growth and what is your go-to-market strategy versus how should we be thinking about your plans for near to midterm. And then finally, the guidance for the fourth quarter, could you please provide a little bit more color in terms of framing the impact of potential EBT snap headwinds versus the incrementality of enterprise and the ongoing strength and older growth? Thanks a lot.

Thank you for the question. On new partnerships, Look, we see potential in so many of our partnerships across the broader business. If you're asking about enterprise specifically, we have, again, 350 storefronts, but we continue to launch more storefronts. We launched 40 new storefronts in the first half alone. We just launched Restaurant Depot, which is our first wholesaler that supplies food service. We just launched Cub last week, another retailer. So we do believe that this is a very important part of our strategy, and you're going to see us continue to lean into this. Our partnerships on the ad front with off-platform are also going to be critical. Again, this was a foundational year where we struck many partnerships, and we're working through integrations and what our go-to-market motion is going to look like as we talk to brand advertisers about those capabilities. And then when it comes to international, first of all, I want to say I'm very excited about our plan to take our technology to new markets. We have already spent some time in other countries. We've spoken to retailers. And again, they're trying to solve the same problems as the retailers that I talked to in North America. How to build scalable e-commerce solutions, ads, and in-store digital solutions for customers. And that said, while I believe that this is going to be a very promising growth lever for us, I'm also focused on ensuring that we're disciplined on expenses and the way that we do this in a way that's aligned with our profitability objectives and our ability to deliver to annual EBITDA progression. So it is probably worth sharing a little bit more about our approach here. So we're exploring the major markets like Europe, but we're doing that with our existing products like Storefront Pro and Caper and FoodStorm. We're not building a new suite of technology specific to these markets. So we will be investing some. There will be resources applied to this effort, obviously, to do the selling and to localize our products. But again, I intend to be super disciplined and extremely focused on how we do that. And truthfully, this is, I think, another great example where our internal adoption of AI with our tech teams can help us accelerate and accomplish our goals in North America at the same time as abroad.

Great. And I can jump in on your question around framing the impact of EBT SNAP. So the way that I think about it is that, first of all, EBT is a relatively small part of our overall business. Obviously, as a company, we're very focused on making sure that we can help families get food on the table. But what we've looked at in terms of our modeling is a variety of funding scenarios because there has been continued uncertainty about how the rest of the year will play out. And ultimately, we believe that we can achieve our guidance in any of those scenarios. Now, what does that mean? It means that we have strong fundamentals in terms of how the business is performing. We did have strong performance in October. That's reflected in our guidance. And as Chris mentioned earlier, we also are seeing continued momentum from our land and expand strategy with our enterprise partnerships. So for example, we are deepening relationships with retailers like Wake, Fern, and Cub. As Chris mentioned, we launched 40 net new retailer sites in H1 alone, and so we're starting to see the benefit of that. We launched Restaurant Depot, and that is off to a great start. Our embedded marketplace on Grubhub. So a lot of little things that are all coming together to drive overall strength in the business.

Thank you.

and the next question will come from nicole devnani with bernstein your line is open hi there thank you for taking the question um chris you've spoken a lot about affordability can you maybe level set for us where we are today um what is the direction of travel been on markups over the past year or two and where are we today versus your desired end goal on this objective and then When you think about pushing towards price parity or reduced markups, it all makes a lot of sense, but there obviously is some tension with merchant partners that worry about their margins on third-party platforms. So how do you get the partner base to buy into the strategy longer term? And does anything have to evolve or change about the Instacart model or structure as more retailers adopt this? Thank you.

Thank you, Nikhil, for the question. So I think we all know, including our retail partners, how important it is to work on affordability, especially with the competitive environment and the fact that people are increasingly comparing prices online. Oftentimes, actually, it's the retailer that brings this up with me. And as a result, we're working with almost all of our retail partners on their strategy. And this can take many forms, including surfacing deals more aggressively or reducing the markup or offering sale pricing or going all the way to the same as in-store pricing, which I think is what you're getting at with the question. On same-as-in-store pricing specifically, we know it's going to have a positive impact. We can see it in the data. Price parity retailers are growing 10 percentage points faster versus marked-up retailers. We know they retain better. And that's why many retailers have moved. In the first half, we announced that Heritage Grocers has moved to price parity. Schnucks went full price parity. And now we have several banners testing their way into it in major markets like Nashville and Chicago and Dallas and Tucson. So I don't know exactly where it's going to net out, but I do think that that trend is going to continue. We don't break it out, Nikhil, because it's simply not binary. How would we capture a retailer that reduces their markup from 6% to 4%, which just happened? It's good news for the customer, but it wouldn't get recorded if we were tracking price parity full stop. Or retailers that offer price parity, but only for loyalty-linked members, as an example. All that said, I will likely report out on a quarterly basis any retailers that have moved to price parity so that you can see any movements. And then for the third part of your question around our approach, for the most part, we're taking a consultative approach and we're sharing the data with what they might expect to see on Instacart from a sales lift perspective and a retention perspective. We're also sharing longer-term share and sales trends of digital overall, including where a retailer might be losing share to some of the largest players that are going after digital baskets. And to the extent that we would invest There are many kind of financial puts and takes with retailers, you know, given the breadth of products and services that we have with most of them. So depending on the broader context, we might put some small dollars towards this, but for the most part, it's the retailers that need to lean in and make the decision and decide how to price their products.

Thanks, Chris. Appreciate it.

Thank you. The next question will come from Ron Josie with Citi. Your line is open.

Great. Thanks for taking the question. Maybe Chris is a follow-up to that one. And I wanted to ask about the chart and the letter around CART's top enterprise partners and the cadence here. It looks for those retailers, the six retailers that were highlighted on the multiple platforms. Maybe with the exception of two, most had a dip and then flattish growth before returning to that 10% average. So talk to us about the evolution here as competition ramps up or as the successivity sort of dissipates here. Thank you.

Yes, sure. Hey, Ron, this is Emily. I can start. I think just to sort of level set on sort of why we included the chart and what we thought was interesting about it, obviously we've had a lot of questions around loss of exclusivity and about how our enterprise relationships really solidify us for the future. And so what we looked at here was for retailers where we had an enterprise relationship, what happens to the business when we go non-exclusive? And, of course, we're quite pleased to see that In those cases, we're able to continue very strong growth across all of the retailers. And as you likely know, the vast majority, over 80% of our business is not exclusive today. And of the remaining that is exclusive, the majority of those have an enterprise relationship with us. And so again, just wanted to underscore why we feel confident in our ability to continue to grow our business. Now, fluctuations in the chart can be, you know, there's nothing specific I would call out outside of things like seasonality or launches with individual retailers, so that's what is going to drive some of the fluctuations you see in the chart.

Great. Thank you, Emily.

Thank you. And the next question will come from Ross Sandler with Barclays. Your line is open.

Yeah, great. Just following up on the price parity topic from a couple questions back, has Amazon's big push changed the nature of the conversation between you guys and your merchants around price parity? That'd be question one. And then the second question is, you know, the new AI offerings look super interesting. Could you just elaborate on how some of this might speed up adoption of merchants migrating to a solution like Instacart, or is this just more like kind of offering another service that just, you know, adds to the plethora of services that you guys already provide? Is this, you know, the materiality of the AI offering, I guess, is the question. Thank you.

Yeah, thanks for the question, Ross. On the first one, as it relates to the competitive environment with Amazon and how retailers are thinking about this and how we're thinking about it, we have assessed the top markets that overlap with where Amazon's rolled out, including the top 30. And we continue to grow in those markets and grow overall, as you can see from our resulting guide. And our mix looks good. We're not seeing a shift in basket composition between small and large baskets. We're not seeing anything meaningful in our ALV. That said, third-party data is showing that the largest source of Amazon.com grocery customers has been the in-store customers. And so we are using this as a rallying cry with retailers where we're already deeply embedded and who need omni-channel strategies to compete. This can show up in a bunch of different ways. It could show up as us more actively and aggressively engaging in our existing roadmap, depending on what we're working on with that retailer. It might mean that we're moving faster with in-store technologies like keeper carts. And as part of this, we are discussing pricing strategies. And as mentioned, some of our large retailers are testing price parity pilots right now in some of the major cities that I outlined. But I do think that retailers are keenly aware of what's happening in the competitive dynamic. We're helping bring them solutions in order to address that and compete and win. On the second one, as it relates to AI solutions specifically and how it might speed up adoption of merchants. Look, I do believe that this is going to speed up the entire industry. And the way that we're going about this is very similar to the way that we go about all of our enterprise technologies. We're going to be innovating directly on Instacart. And then we're going to take that technology to retailers. When we do these types of things, what we see is technology accelerates across the grocery ecosystem. So on Instacart, we're going to be building out agentic experiences directly. We have incredible data from our 1.5 billion orders to date. We have a rich catalog from 17 million unique items. We understand people's preferences, and we have the best UX. And as a result, we do think we can deliver the most relevant agentic experience for grocery. with a great user interface directly on Instacart. And then with what we called cart assistant last week, we will be bringing these conversational capabilities to our retail partners so that they're going to have similar capabilities at the same pace and scale that we're building out directly on our marketplace. And this is going to, we think, enhance the grocery experience in several ways. You could interact with an assistant up front or you could interact with a digital assistant throughout the journey. So for example, You could give cart assistant a prompt around a party for 10 people, and it would help you build a cart based on your cost preferences and any other context that you provide about the other guests. Or you can shop normally and engage as needed. So for example, at the end of the shop, you could say, check my entire basket for any gluten, as an example. And so we're going to take that technology, we're going to make it available to our retail partners in the form of this AI solution. And that means that we're going to be building agentic experiences on retailers' owned and operated websites, like the ones that we've already highlighted, Sprouts and Kroger.

Thank you. And the next question will come from Justin Post, Bank of America. Your line is open.

Great. Thank you. A couple questions. I wonder if you could help us understand the Enterprise Solutions contribution, maybe to revenues or just overall, to your business besides just retention of retailers? Just financially, how do you think about it? And then second, you did mention that October's off to a strong start. I know there's some concerns out there, but are you seeing any changes from new competition in October? Thank you.

Okay, Justin, I'll start. I'm glad you're asking about the enterprise business because, again, we think it's one of our biggest critical advantages. From an economic perspective, there are some non-direct benefits. It increases our order density. It gives us cost and serve advantages. It allows us to reinvest back into the business. But we don't break out growth or unit economics on enterprise or marketplace because it differs retailer by retailer. And we're constantly working with retailers to launch a host of new services. But what I can tell you is that both marketplace and enterprise are growing parts of our business. both add to our bottom line, both reinforce each other in a virtuous cycle. We're an investment in one. If we make an investment on Marketplace, it helps us with our investment in enterprise.

Yeah, I think the only thing I would add to that is just that, you know, enterprise is not a new part of our business. We're obviously talking about the opportunity for growth, but if you recall back at the time of, you know, the S-1, at that time we talked about how enterprise was about 20% of our business. So I just wanted to call out that, you know, the enterprise economics have been included to date, and so I thought that might be helpful to add.

Great. And on the second part of your question, Justin, around competition, You know, look, it's an attractive market. Fortunately, competition isn't new to us, and we're not at all surprised by the evolving competitive landscape, given the massive TAM and the market penetration is relatively small relative to other e-commerce categories. But when I take a step back here, it's clear that we're playing a different game. We're leading in areas of the market that our competitors don't really touch, such as big baskets, so over $75, which still represents 75% of the online grocery market. and on retailers' owned and operated sites, which, as I've already said, we're an enterprise platform. And because of these key differences, we continue to be the clear leader in online grocery among digital-first players. We're leading in share sales by far. We're three times higher than the next largest digital player. We're leading in new activation GTV. We're multiples higher in large basket activation. We're multiples more effective at converting small basket activations to large baskets. So in my mind, we've proven that we can compete and win in a highly competitive space, and we haven't seen anything in the short term that would change that.

Great. Thank you.

Thank you. And the next question is going to come from Deepak Mathibana with Cantor Fitzgerald. Your line is open.

Great. Thanks for taking the question. So, Chris, the new AI tools are very interesting. Can you talk about the strategy to kind of merchandise the tools more extensively in front of consumers? and perhaps aim to make Instacart a bigger part of the meal planning service for consumers, you know, just beyond the weekly grocery delivery service, and how much of this experience needs, you know, is dependent on sort of like a retailer integrations versus some of the data and tools that you have. And then maybe one for Emily. I think Chris noted that the unit economics is positive for all types of orders. Can you talk about the factors that help small basket orders reach profitability, and do you think There's a runway to kind of improve the incremental margins for these over time. Thank you so much.

Thank you, Divak. I'll take the first one around AI tools. So we're actively using AI directly on Instacart in order to enhance the experience, and we're looking for ways constantly to merchandise those. We're focused on better personalization, the most relevant digital shelf, better recommendations, better replacements, And we want to use our rich data set to really capitalize on the rise of Gen AI. Our product catalog spans 2 billion product instances. We're finding the 17 million unique items. We've completed over 1.5 billion lifetime orders. And that gives us a real advantage to put personalized experience at the forefront of the consumer experience going forward, including the things like meals, which you've called out. We will have the ability to create customized meal plans based on inputs from consumers in the future, and that's all coming. There's also, you know, you can start to see some of the things that we're doing on our site already from a merchandising perspective with things like Smart Shop, which is our AI-powered personalized shopping experience, which analyzes customer behavior and dietary preferences to surface that the most relevant products faster. So we've created virtual aisles today, which are live, which are tailored to specific household needs. So if you have a baby or if you have a pet or a dietary need. And we were also doing personalized replacements, which is showing up today to consumers. That includes incorporating, again, dietary needs as well as pricing and past preferences. So we've really started to surface AI-driven experiences, and you're just going to see that continue to accelerate into the future.

On unit economics for various basket sizes, so one of the most important things that drives our ability to create unit economics that we like is really about the density of orders at the same place at the same time because that allows us ultimately to batch orders. And what you've seen is that the number of orders that we have per batch has increased by double digits over the last four years. So that's been a key focus of ours. Additionally, we started to talk about how we were able to batch priority orders, which was something that was new for us over the last several quarters. And we're now batching about a quarter of priority orders. That, again, allows us to really take advantage of that overall density. The other thing that we focus on is just time to fulfill an order. And again, the time it takes for a shopper to fulfill an order has gone down by 25% over the last four years. So it's these kind of things that we're really focused on. Again, it's really about shaving off seconds or minutes of an order that allows us to get to a place where when we launched the minimum basket size sort of end of last year into early this year, We said we could do it at Economics We Like. That said, if I look at the sort of economics of basket sizes since that launch, I'm really, really pleased with our ability to improve the overall profile and really seeing effectively convergence of our ability to be profitable across any basket size. So that allows us ultimately to be the provider that can service you know, any of a consumer needs. Now, we've talked about our strength in big baskets, and, of course, we think that's critical to being able to serve the primary use case for groceries for families, but the fact that we're able to do that across small baskets as well means that we can be there for you regardless of the use case.

Great. Thank you so much.

Thank you. And the next question comes from Ken Goroski with Wells Fargo. Your line is open.

Thank you, too, if I may, please. First, as digital grocery delivery becomes more ubiquitous, are you seeing any changes to shopper behavior? Are basket sizes becoming smaller and maybe shopping occasions becoming more frequent? Do you see any of this in kind of any of your customer cohorts? And if so, what does it mean for Instacart? That's question one. Second question, please. Just any updates you might have on the New York City delivery minimum wage changes expected in early 26 and in any ways you anticipate to mitigate those impacts. Thanks so much.

Sure. Yes, I can start with the shopping behavior. So no, we're really not seeing what I would describe as change in, I'll say consumer, because when I think of shoppers, I think of the person executing the basket in the store. So on the consumer side, which I think where your question was, but correct me if wrong, what we're seeing actually is that large basket growth remains consistent. So it is continuing to be the majority of the market. It's 75% of the market. And so really what we're seeing is that by reducing the basket size, what we're adding is incremental use cases. And so overall, I think about it more as capturing the full set of needs of the consumer. But in terms of what we're seeing in terms of just general behavior, we continue to see large baskets playing a critical role.

And for the second one on New York, I'll speak to it at a high level, and then Emily can speak to how we're thinking about it financially. So what we know is that New York City Council passed a bill that establishes a minimum earning standard for grocery delivery workers. Mayor Adams did veto the bill, but the council ultimately overrode it. The bill extends existing earning standards that restaurant delivery platforms have been operating under since 2014 to grocery delivery workers. now we're working with the city during the rule-making process. So it's a little early to determine the impact, but look, our mission is to help families put food on the table, and the reason we don't support these types of extreme regulations is that they do the opposite. We know that this is going to come at the detriment of customers and shoppers and retailers in New York City. Customers could see increased fees, shoppers could see fewer earning opportunities, and they may lose the flexibility to choose when and where they shop. Retailers will likely see few orders given the cost increase to consumers. But we have dealt with many regulatory changes over the course of Instacart's history, and we're confident we're going to be able to navigate this one and still deliver on our profitability objectives at a company level. To be clear, this is not an outcome that we want or believe is good for stakeholders in New York.

Yeah, I think the only thing I would add there is just that, you know, for us, New York represents a pretty small percentage of overall GTV. So I agree with everything Chris said in terms of navigating the potential to see, you know, increased fees on the consumer side, but not something we haven't seen before and certainly able to navigate at a total company level. Thank you.

Thank you. And the next question is going to come from Stephen Fox with Fox Advisors. Your line is open.

Hi, good morning. I just had one question. I was curious if you could talk a little bit more of the reasons behind even pursuing any international expansion at this point, as opposed to doubling down on your advantages that you've talked about in the U.S. from two aspects, one just here and now that I just mentioned, and secondly, the fact that as you have moderate success there, it's going to lead to bigger and bigger investments, which maybe your investors are less inclined to accept. Thanks.

Yeah, thank you, Stephen. I mean, we think this is the right moment in time for us to start exploring markets outside of North America. For the last few years, we've been working with retailers throughout North America, and we've established a very strong base. We know, we understand retailers and the types of challenges that they're trying to solve locally in the U.S. and Canada. And we believe, based on all of our conversations, that it's the exact same challenges that they're trying to solve in these other markets. And so the opportunity feels right. Again, we're going with our existing set of products. Storefront Pro and Caper and FoodStorm, these are built. So, yes, we're going to need to invest and go to market motion. But for the most part, we're taking our existing technology and we're extending that to retailers beyond just North America so that we can continue to grow our business and do marketing.

Yeah, I think the one thing I would just add just to clarify the difference that Chris just mentioned is we're building on products that already exist today. What we didn't mention was trying to build a marketplace solution, which I think has a different investment profile, as you mentioned, Stephen, than going with what are sort of effectively enterprise-led solutions.

That's helpful. Thank you.

Thank you. And our next question will come from Andrew Boone with Citizens. Your line is now open.

Thanks so much for taking the questions. Chris, you mentioned in an earlier response the path to 4% to 5% take rates for ads. Can you just walk us through the path there? Is that on platform or do carrot ads need to grow larger for you guys to be able to reach that target? Any help there would be great. And then is there any update you guys can provide in terms of Instacart Plus? We haven't talked about that this quarter. What's new? What's changing? Kind of what's the plan to grow penetration? Thank you.

Yeah, thank you for the question, Andrew. Again, I want to reiterate that we do believe we're very confident in our ability to achieve our long-term targets of 4% to 5%. But I do think it's going to come from a combination of things that are going to get us there. As a starting point, we're consistently innovating on platform with new formats, optimizations. We're building out new tooling like one-click recommendations, which is now out to 3,000 brands. We just launched AI landing pages, which are now broadly available to brands. And then what's going to build on top of that? Everything that we're doing on our own platform is just the ad ecosystem that we're building and the foundation that we've been building throughout the last couple of years. Carat ads is going to be a big part of our growth engine longer term. Again, we're up to 240 carat ad partners today. So we're extending our existing tech and demand onto all of these retailers' sites, and we're continuing to launch more. And then ads on caper is, we believe, very promising. Again, we've just launched ads on caper at Wake Fern, where we're at 20% of stores having caper carts. And we believe that that's going to be a very exciting use case, in-store use case. Actually, I think it's one of the most exciting omnichannel advertising use cases that exists today because we have the ability to target customers and work with retailers to deliver personalized ads in the store. And so that is an exciting vector for us. And then, again, we're really pleased with the foundation that we've made with all platform partnerships this year and extending that to more partners, including Pinterest and TikTok. So, again, when you take all of these, it's not just one thing. When you take all of these strategic pieces together, that's what's going to drive our long-term growth. We're going to extend our high performance on platform that brands trust. They trust our performance. They trust our measurement. And then we're taking all of that performance to all of these new surface areas where we see real growth potential over the long term.

In terms of Instacart Plus, this continues to be a really critical part of our overall strategy. We are focused on doubling down on Instacart Plus because these are our best customers. In terms of where we are today, paid Instacart Plus members continue to grow. The engagement of those users as a percentage of our monthly users continues to deepen, so that's something we like to see. It has been and continues to represent a majority of activity on the platform. And then last but not least, I think I would just say that they are more engaged and have higher retention than non-INSEE+. And that's why we continue to look for ways to make the Instacart Plus membership even more valuable. You've seen us add subscriptions like New York Times Cooking. You've seen us add restaurants. free delivery on restaurants over the course of the last year. So you can expect us to continue to find ways to make the membership even more valuable and drive continued penetration of the membership.

Thank you. Thank you. And the next question comes from Jason Hellstein with Oppenheimer. Your line is open.

Thanks. Two questions kind of related. So, I mean, as you're thinking about adding new Instacart Plus members, How much of the growth at this point is still like greenfield, meaning like these are people who don't have, let's say, another prescription program, you know, and again, you can kind of answer that question however you want. And then second, it seemed like this earnings season we heard more commentary from some competitors about deemphasizing large baskets and focusing more on small baskets, which seems like it will be positive for Instacart, but just if you want to elaborate maybe on some of the competitive dynamics you're seeing in the market around basket-sized things.

Sure. In terms of Instacart products, Plus, sorry, I think the first question was just around whether we think there's greenfield opportunity. I think the reality is we're focused on our own product and service and what we're able to bring to the table. And we know that our membership brings the best of grocery capabilities to users. as well as through our partnership with Uber Eats, a leading grocery selection. And so we've seen that be a really powerful combination, and we haven't seen specifically any competitive impacts in terms of our ability to grow those users. So again, it's really about focusing on the suite of services we provide, which is far and away best-in-class grocery across selection, affordability, quality, and convenience, layering on the restaurant's capability, and then additional partnerships. The other things that we try to do is continue to make that membership more valuable, things like we extended family accounts to three members. We have partnerships extended with programs like Chase United, their co-brand cards, the Chase Inc. cards with in-app monthly credits. So again, we're continuing to find new ways to make these more valuable, but we do think there's continued opportunity to grow our InterCart Plus membership base, and again, ultimately that will drive growth for us.

And on your second question around small baskets versus large baskets and whether or not there's a trend, we aren't seeing an overall shift towards smaller baskets. Seventy-five percent of the market is still in large baskets, $75 and above. And as I mentioned, we're not seeing a shift in basket composition between the two. We're not seeing meaningful change in our AOV. I think it's possible that new entrants and new use cases are driving incremental small baskets online, and I think those baskets are coming from the physical store, which is what we're seeing with the Amazon baskets. I'll also just point out that although we're exceptionally strong in large baskets, we do also participate in small baskets as well. We want to meet the needs of our customers regardless of where they shop. That's why we introduced things like $10 minimum basket, for example. And we're successful in small baskets. As Emily mentioned, we drive efficiencies. We're also converting small basket users to large basket users at multiple times higher than others. And so, yes, we're not seeing an overall trend towards small basket, but it is an area that we also do well in.

Thank you.

Thank you. And due to the time, this does conclude our question and answer session for today. And I do want to thank you for participating. And this will conclude today's conference call. You may now disconnect.