Instacart is expanding its artificial intelligence (AI) capabilities with the acquisition of Arpalus, a computer vision company that provides real-time shelf information for grocery retailers.
Arpalus uses computer vision technology to turn videos of store shelves into product availability information that shoppers can use in online orders. The acquisition will directly combat undetected out-of-stocks and catalog gaps, which are leading causes of customer dissatisfaction in grocery delivery, Instacart said. The technology will be integrated into the app Instacart shoppers already use.
“With our leadership in Physical AI for grocery retail and by activating our network of shoppers, we can feed even more accurate shelf information back into our models, delivering better outcomes for customers, shoppers, and our retail and brand partners,” said David McIntosh, chief connected stores officer at Instacart, in a press release.
The companies did not disclose terms of the deal.
How Instacart will use Arpalus
Arpalus said the computer vision technology it uses is specifically built for grocery store environments. There, it has been created to work with unreliable Wi-Fi and inconsistent lighting. Moreover, it is designed to differentiate between similar products that may be shelved together. It can identify products with an average 95% accuracy, according to Instacart’s press release.
Instacart said Arpalus’ technology can help bridge that gap by allowing its network of approximately 600,000 shoppers to generate shelf data using the same app they already use while fulfilling orders.
The company expects the additional shelf data to improve order fulfillment by helping shoppers locate products more efficiently and reducing instances where customers receive substitutions or refunds.
Instacart currently collects grocery intelligence from more than 1.6 billion lifetime orders and real-time inventory information from nearly 100,000 stores across North America, according to the company. It said its shopper network generates more than 10 million unique daily data points through activities such as picking items and handling substitutions.
Instacart’s Arpalus acquisition goes beyond fulfillment
The Arpalus acquisition also supports Instacart’s broader push into connected retail technology.
The company said the technology will enhance Store View, its computer vision solution designed to provide retailers with greater visibility into store conditions, introduced in 2025. Store View is part of Instacart’s AI Solutions business.
The technology will also support Instacart’s Caper Carts, smart shopping carts equipped with cameras and sensors that provide in-store insights as customers move through aisles. Instacart said Caper Carts are currently used in Kroger, Schnucks, ShopRite and other retailers.
Instacart retail partnerships
Instacart’s latest acquisition comes on the heels of recent retail partnerships.
In April, Aldi U.S. announced that it would exclusively use Instacart for ecommerce fulfillment. Aldi became one of the more than 380 retailers using its Storefront Pro enterprise grocery platform.
Then in July, Tractor Supply joined the Instacart Marketplace to facilitate one-hour delivery from the outdoor retailer. Consumers can shop Tractor Supply’s full product assortment through the retailer’s website and app, Instacart said.
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