Food delivery service Instacart is reportedly holding off on plans to go public as it waits for a more favorable business climate.
According to multiple media accounts Friday (Oct. 21), including The Wall Street Journal (WSJ), sources with knowledge of the matter said the company has pulled back on its initial public offering (IPO) plan amid one of the worst years for such listings in more than a decade.
Instacart declined to comment on its IPO when reached by PYMNTS Friday. A spokesperson provided a statement saying the company is proud of the work its teams have done and that “our business has never been stronger.”
The statement points to Instacart’s 40% year-over-year revenue growth during the third quarter, and that its net income more than doubled from the second quarter.
The news comes one week after Instacart slashed its internal valuation for the third time this year, marking a two-thirds drop from its $39 billion price tag in 2021. In March, the company lowered its valuation to $24 billion, while the second cut in July put its value at $15 billion.
Read more: Instacart Valuation Reportedly Reset to $13B
The Silicon Valley company filed for an IPO in May and has since cut some of its 3,000 positions, including at least three senior-level employees, as part of its preparation to get ready, PYMNTS reported last month.
Instacart has also cut back on new hires while telling managers to reduce spending and expenses for travel and team gatherings.
See more: Instacart IPO Prep Includes Staff, Spending Reductions
Reports emerged last month that the company had hoped to go public by year’s end. It was not immediately clear Friday if Instacart would try for an IPO during 2022.
This week has seen other delivery services dealing with harsh economic realities. British company Deliveroo announced Wednesday (Oct. 19) that it would end its operations in the Netherlands, as the Dutch market made up just a fraction of its gross transaction value.
Read more: Deliveroo to Exit Dutch Market in November
Wednesday also saw reports of ongoing job cuts at U.S. delivery service Gopuff, amid what PYMNTS has called a challenging year for ultrafast grocery companies, as funding for these startups fell from over $4 billion last year to just a little more than $1 billion so far in 2022.
See more: Delivery Startup Gopuff Cuts Hundreds of Jobs
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