Instacart (NASDAQ: CART) and Toast (NYSE: TOST) have entered a strategic partnership that will let Toast’s retail partners upload and sync their brick‑and‑mortar inventory to the Instacart Marketplace, while Toast restaurants gain a just‑in‑time procurement channel for essential supplies through Instacart Business. The collaboration is designed to streamline operations for both retailers and restaurants across the United States, enabling retailers to grow their online storefronts and restaurants to maintain kitchen inventory without manual ordering.
Instacart’s Q3 2025 revenue reached $939 million, a 12% year‑over‑year increase, driven largely by its advertising business, which is projected to generate $1.45 billion in 2025. The company’s enterprise strategy has focused on expanding its platform to non‑grocery retailers, and the Toast partnership represents a key step in that direction by opening a new customer base and a higher‑margin revenue stream.
Toast reported a 25.1% year‑over‑year revenue rise in Q3 2025, reaching $1.62 billion, and its adjusted EBITDA margin expanded to 35% from 30% the prior year. The company’s all‑in‑one restaurant operating system has seen strong adoption, and the partnership will add inventory‑sync and procurement capabilities that complement its existing POS, payments, and marketing tools. Toast is scheduled to report its Q4 2025 earnings on February 12 2026, where analysts expect continued revenue growth driven by its expanding ARR of $2.0 billion.
The partnership aligns with Instacart’s goal of growing higher‑margin enterprise and advertising businesses. By integrating with Toast, Instacart can tap into a large network of restaurants and retail partners that require rapid, reliable supply chain solutions, while leveraging its same‑day delivery network and AI‑driven logistics. For Toast, the collaboration adds a powerful procurement channel and inventory visibility that can reduce waste and improve operational efficiency for its customers, thereby deepening the platform’s value proposition and encouraging further adoption.
Steve Fredette, Co‑Founder and President of Toast, said, “Whether helping a local grocery shop reach new customers online or enabling a restaurant to ensure the kitchen never runs out of key ingredients during a Friday night rush, this partnership with Instacart aims to help our customers never miss a beat as they run—and grow—their businesses.” Ryan Hamburger, Vice President of Commercial Partnerships at Instacart, added, “This partnership brings together two platforms that play complementary roles in how retailers and restaurants operate and grow. We’re looking forward to expanding our breadth of retailers by welcoming Toast’s retail partners to the Instacart Marketplace and giving Toast restaurants access to our marketplace via Instacart Business for a fast and flexible way to source produce and other essentials to meet last‑minute needs.”
Analysts are watching the partnership as a potential source of higher‑margin enterprise revenue for both companies. While the announcement does not immediately impact earnings, it signals a strategic shift that could influence the outlook for Instacart’s enterprise platform and Toast’s restaurant operating system, especially as both firms prepare for their upcoming Q4 earnings releases.
The collaboration is expected to create revenue synergies by expanding Instacart’s customer base into the hospitality sector and by providing Toast’s clients with a streamlined procurement and inventory management solution. The partnership also positions both companies to compete more effectively against other delivery and restaurant‑technology providers, potentially accelerating growth in their respective high‑margin segments and strengthening their competitive foothold in the food‑service and retail ecosystems.
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