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Jason Unplugged: IPO market, WaPo tactics against Dave Portnoy + Live Q&A | E1815

This Week in Startups

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Instacart's Strategy: Making $0 on Sales and Going After Amazon

Instacart's revenue is on the rise, but they don't make much money off groceries. However, their ad revenue is growing, which means ads will become a larger portion of their total revenue. Instacart aims to compete with Amazon by focusing on advertising connected to the shopping cart. They want to make no profit on sales and instead target the 'share of cart.' The little ads that pop up at checkout are powerful and can drive more sales. Instacart should be valued at around $6-9 billion based on their earnings. The IPO market is benefiting investors like CoSLA, Y Combinator, Sequoia, and Andreessen Horowitz, who were early backers of Instacart.

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