We recently published a list of 7 Best Delivery Stocks To Invest In Now. In this article, we are going to take a look at where Maplebear Inc. (NASDAQ:CART) stands against other best delivery stocks to invest in now.
An Overview of the Delivery and Courier Industry
The delivery and courier industry is diverse, encompassing a wide range of services that connect businesses and consumers through various shipping methods. Parcel delivery services are a major component, with companies offering both domestic and international shipping options, driven by the rise of e-commerce.
Another significant segment is food delivery platforms. These platforms connect hungry customers with local eateries, creating a new business model that thrives on convenience. Overall, the delivery industry is evolving rapidly, with diverse players working to meet the growing expectations for speed and reliability in shipping services.
According to Zion Market Research, the global on-demand delivery market was valued at $15.19 billion in 2023. Looking forward, the market is expected to grow at a compound annual growth rate (CAGR) of 20.90% during 2024-2032 to reach $83.82 billion by the end of the forecast period. In 2023, the Asia-Pacific region led the market in revenue and is projected to maintain its dominance throughout the forecast period.
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This growth is fueled by increasing consumer expectations for fast and reliable delivery services, particularly same-day and next-day options. Experts highlight that the demand for quick deliveries has led to substantial investments in last-mile delivery solutions and advanced technologies, such as automation and artificial intelligence (AI).
In 2024, consumers have continued to prioritize free and fast shipping for their online orders, according to recent data from Digital Commerce 360 and Bizrate Insights. A survey of 1,013 online shoppers revealed that 81.34% consider free shipping their top priority when receiving deliveries. Fast shipping follows closely, with 68.41% of respondents highlighting its importance. Additionally, 55.68% of consumers emphasized the need for retailers to keep products in stock and ready to ship.
AI and automation are key trends that are significantly transforming the delivery services industry, making operations more efficient and responsive to consumer demands. For example, companies like DHL Express have introduced the DHLBot in Singapore and South Korea. The DHLBot is an AI-powered robotics arm that can sort over 1,000 small parcels per hour with 99% accuracy. This technology not only speeds up the sorting process but also reduces labor costs and minimizes errors, allowing for quicker deliveries.
As the industry evolves, it is clear that AI and automation will play a crucial role in shaping the future of delivery services.
Methodology
To compile our list of the 7 best delivery stocks to invest in now, we used the Finviz and Yahoo stock screeners to find the largest delivery companies. We also reviewed our own rankings and consulted various online resources. From an initial pool of more than 20 delivery stocks, we focused on the top 7 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s database of 912 elite hedge funds. The 7 best delivery stocks to invest in now are ranked in ascending order based on the number of hedge funds holding stakes in them as of Q2 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Maplebear Inc. (NASDAQ:CART)
Number of Hedge Fund Holders: 56
Maplebear Inc. (NASDAQ:CART), doing business as Instacart, is an American delivery company that facilitates online grocery shopping, delivery, and pickup services in the United States and Canada. The company partners with over 1,500 retailers across North America, allowing customers to shop from more than 85,000 stores on the Instacart Marketplace.
Maplebear Inc. (NASDAQ:CART) is actively enhancing its services and technology to improve the shopping experience for customers. In 2023, the company completely revamped its white-label e-commerce storefront solution, allowing enterprise partners to access new features and technologies. This shared architecture benefits both Instacart and its partners, making online grocery shopping more efficient. So far this year, Instacart has launched e-commerce storefronts for more than 30 new retailers, including regional favorites like Bi-Rite and Coborn’s.
Additionally, the company has introduced the Caper Cart, an AI-powered smart cart that simplifies the checkout process and offers personalized recommendations to shoppers. Recently, Maplebear Inc. (NASDAQ:CART) launched Caper Carts internationally in partnership with ALDI in Austria, showcasing its commitment to innovation. With plans to expand its technology and services further, Instacart is focused on creating a seamless shopping experience that connects online and in-store shopping.
In the second quarter of 2024, Maplebear Inc. (NASDAQ:CART) showed strong financial performance with a Gross Transaction Value (GTV) of $8.2 billion, reflecting a 10% increase compared to the same quarter in the previous year. The company processed 70.8 million orders, which is a 7% rise year-over-year. Total revenue reached $823 million, marking a 15% growth from the same period last year and representing 10% of the GTV. These positive results highlight the company’s ability to expand its business and meet growing consumer demand for grocery delivery services.
According to Insider Monkey’s database, 56 hedge funds held stakes in Maplebear Inc. (NASDAQ:CART) in the second quarter of 2024. This brings CART to the 5th spot on our list of the best delivery stocks to invest in.
Overall, CART ranks 5th on our list of best delivery stocks to invest in now. While we acknowledge the potential of delivery companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CART but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.