Its shares rose about 10% in extended trading on Thursday after the company also topped estimates for the April-June quarter.
Faced with sticky inflation and broader macroeconomic uncertainties, shoppers are opting for cheaper alternatives to everyday essentials while gravitating toward rapid-delivery services, drawn by the ease, speed and value they offer.
"Consumers aren't simply trading down, they're making more calculated spending decisions, and a single app makes it easier to compare retailers, promotions and basket sizes before checking out," said eMarketer analyst Suzy Davidkhanian.
Instacart, which focuses on affordability, last year lowered the minimum order value for its Instacart+ loyalty program to $10, seeking to capture smaller grocery baskets as rivals pushed aggressively into low-ticket orders.
"We're attracting and engaging more customers across our marketplace and enterprise platform, which creates more value for retailers, brands and shoppers," CEO Chris Rogers said.
The advertising business of Instacart, formally known as Maplebear, grew 16% to $297 million in the second quarter.
"Instacart has created a flywheel where more shoppers attract more retailers and brands, strengthening its marketplace, advertising and enterprise businesses," Suzy said.
The company expects third-quarter gross transaction value, a key metric that shows the value of products sold based on prices shown on Instacart, to be between $10.30 billion and $10.55 billion, above analysts' average estimate of $10.21 billion, according to data compiled by LSEG.
Instacart also expects adjusted core profit in the range of $320 million to $340 million, versus the estimate of $318.8 million.
Peer DoorDash also forecast upbeat third-quarter gross order value and core profit on Wednesday as delivery demand holds firm.
Gross transaction value was $10.35 billion in the second quarter, compared with the estimate of $10.20 billion.
Adjusted core profit of $313 million also surpassed analysts' expectations of $298 million.
