Instacart to wind down smart cart unit, take up to $80 million charge
Instacart is retreating from a retail technology bet that it had positioned as a major part of its expansion beyond grocery delivery. The company says the shutdown of its Caper smart cart team is due to be completed by the second quarter of 2027 and will free up funds for other growth initiatives.
Highlights
- Instacart will wind down its Caper smart cart unit, incurring charges between $55 million and $80 million per its SEC filing.
- Cost savings from the Caper shutdown will be reinvested into strategic growth initiatives as Instacart pivots away from high-profile in-store tech.
- Instacart's exit from smart carts follows its early 2024 plan to deploy thousands, as competition from Amazon's upgraded cart at Whole Foods intensifies.
Shutdown plan and expected costs
As reported by Business Insider, citing Instacart in an SEC filing, the company says its board approved a plan to wind down the team that develops Caper smart shopping carts. The move is expected to cost between $55 million and $80 million, including expenses tied to terminating some employees and contracts.Instacart says it will reinvest the savings from the decision into "strategic growth initiatives." The company had built Caper into one of its most visible retail technology offerings as it broadened its business over the past several years from a delivery-focused startup into a seller of tools for grocers.
Retail technology strategy shifts
Caper carts use cameras and sensors to weigh produce, track items added or removed, apply coupons and process payments at the end of a shopping trip. Instacart also viewed the carts as a channel for tailored advertising through onboard screens.That makes the retreat notable after the company said in early 2024 that it planned to deploy "thousands" of the carts in stores. Then-CEO Fidji Simo said at the time that the company believed the technology would represent the future of grocery shopping.
Instacart's decision also comes as competition in smart in-store retail tools continues. Amazon, which offers a similar smart cart, said at the start of 2026 that it plans to begin using a new version at Whole Foods Market stores.
In our earlier article on retailers tying executive pay to AI adoption, we covered how companies are increasingly being pushed to prove returns on AI spending across operations and customer tools. We noted Ralph Lauren’s move to link a portion of annual executive payouts to AI literacy and enablement, reflecting a wider shift in retail priorities and governance around new technology investment.
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