USA | Instacart is closing its AI-powered Caper Cart business after retailer adoption failed to grow sufficiently to justify further investment.
The decision is a significant change for the grocery technology company, which had promoted smart trolleys as a way to simplify checkout, improve the shopping experience and create new advertising opportunities for brands.
Instacart expects the closure to cost between US$55 million and US$80 million, with the business scheduled to be substantially wound down by June 2027.
Caper Carts use cameras, sensors and touchscreen displays to identify products as customers shop, calculate their spending and support checkout. The trolleys also provide opportunities for personalised promotions and advertising.
The technology had attracted interest from major supermarket operators, including Kroger in the United States and Coles in Australia. Coles introduced Caper Carts at its Richmond Traders supermarket in Melbourne in February 2025, becoming the first retailer in the Asia-Pacific region to deploy the technology.
Despite expanding into several international markets, Instacart said the rate of adoption had not justified the investment needed to grow the business.
The company said retailers and brands were increasingly prioritising technology that could be introduced across entire store networks. It will now concentrate on software, inventory intelligence and AI tools designed to improve visibility of stock availability and store operations.
According to Instacart's regulatory filing, the closure costs include between US$21 million and US$36 million for terminating contracts, up to US$27 million in asset impairments and between US$12 million and US$17 million in employee termination costs.
Between US$30 million and US$50 million of the total is expected to involve future cash expenditure, with savings from the closure redirected towards other areas of the business.
The decision also removes a potential retail media platform. Caper Carts were designed to deliver advertising and product recommendations directly to customers while they shopped, creating an additional revenue opportunity for retailers and brands.
For supermarket operators, the withdrawal raises questions about the cost of introducing new technology and the returns required to support it. Smart trolleys involve investment in equipment, maintenance and integration with existing store systems, with the commercial benefits dependent on customer use and retailer adoption.
Instacart has not detailed what will happen to existing installations, including those introduced by Coles, or how long support arrangements will remain in place.
The company will continue developing technology for physical stores, but its investment is shifting towards software that can be introduced across larger retail networks without the same dependence on specialised shopping equipment.
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