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Instacart Acquires AI Technology to Improve Product Availability Details

Instacart recently acquired Arpalus, a shelf-scanning tech startup, as it looks to both boost efficiency and address some of the top reasons that online grocery shoppers are dissatisfied with their experiences. The move is a great example of a company noticing common customer concerns and finding ways to directly improve and address them.

Author: Kale Havervold

4 MIN READ
Instacart Acquires AI Technology to Improve Product Availability Details

In an effort to improve efficiency, boost inventory clarity, and address some of the top reasons why online grocery shoppers are dissatisfied with their experience, Instacart acquired Arpalus, a startup that develops shelf-scanning technology.

Instacart expects the technology to easily blend with the app it already uses to handle orders and will help workers assembling orders do so much more effectively and accurately.

Instacart Acquires a Cutting-Edge New Startup

Instacart recently made a move to acquire tech startup Arpalus, which is the developer of an AI system that lets workers record and keep track of product levels in a store by using a smartphone app.

The technology can scan and identify items on shelves with 95% accuracy, and is specifically optimized for grocery stores, where lighting isn’t always the best, products are often clustered, and data connections aren’t always reliable. Also, Instacart said the technology will blend well with the app it already uses to handle its orders.

But in addition to purely working on mobile devices, Arpalus’ system also works with Instacart’s smart carts, called Caper Carts. These carts, which are equipped with cameras, will be able to feed product images as people move throughout the store, providing even more clarity surrounding the conditions of the store.

The Acquisition Directly Addresses Common Customer Concerns

According to Instacart, two of the top reasons that online grocery shoppers aren’t satisfied with their experiences are unnoticed out-of-stocks and missing details about product availability.

This strategic acquisition helps the company address both of those common concerns by ensuring the workers who assemble orders can fulfill orders more accurately and effectively, while also helping show real-time inventory on store shelves by using computer vision.

The company plans to use the data generated by this technology, as well as other info that workers collect in-store, to better keep track of product availability and offer a better online grocery shopping experience to customers, with fewer unwanted substitutions and out-of-stock cancellations.

Even before this move, Instacart has made an effort to listen to its customers’ problems and issues, and make changes in response to feedback. For example, in early 2026, the company ended its AI pricing test after negative backlash from consumers and regulators.

In addition to addressing these customer issues directly, the acquisition was also made to help the company boost efficiency, improve customer service, boost workers’ earning potential, and give retailers more clarity about inventory levels.

Grocery sales have hit a record high, with the industry projected to grow even larger over the coming years, and it’s clear that Instacart is looking to lead the space by making changes that not only improve the technology the company uses, but also help customers have better experiences, too.


Our Take

The Importance of Noticing Customer Pain Points and Fixing Them

While not every company can acquire a startup that directly addresses concerns like this, all ecommerce brands can get better at keeping tabs on customer pain points and finding ways to improve them.

To ensure you’re always updated about any issues your customers may have, consider gathering feedback, asking questions, performing social listening, or analyzing your support tickets to see what people are often dissatisfied with.

As far as how to improve these issues, that depends on the pain points you uncovered. You may need to improve your shipping speeds, boost store/site speed, create a clearer and more hassle-free return policy, or elevate your customer support efforts. The exact changes you make will vary with the issues your customers are most commonly having.

No matter what the improvements you make are, customers often appreciate you taking steps to make their experience better. Also, implementing changes that show you’re listening to their feedback may help them stay loyal and become long-term customers.