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Grocery delivery company Instacart said on Thursday it had cut its valuation for tech stocks from $39 billion to $24 billion, reflecting poor market conditions.

“We are confident in the strength of our business, but we are not immune to the market turbulence that is affecting leading technology companies, both public and private,” the company said in a statement.

Adjusted valuation news, a rare act of a private company that occurs when an independent valuation appraiser reviews the value of a company’s stock, previously reported by Bloomberg. The company said Instacart informed employees about the low valuation earlier on Thursday.

The valuation change provides a potential benefit: Assuming market interest in Instacart’s recovery, employees may be offered share-based compensation, which may be more upside in the long run.

The company matches people at home who order groceries from its app with customers who work for the company as independent contractors. Contractors take someone’s food and then deliver it. During the pandemic, the company’s growth skyrocketed as people stayed at home and raised $265 million last yeardoubles its value.

But grocery stores have complained that Instacart’s fees are making it harder for them to make a profit, and the company has faced questions, among other pandemic successes like Zoom. peloton and DoorDash about whether its business is sustainable once the world returns to normal.

Instacart has also worked to expand their offerings. On Wednesday, it announced a pilot program that will enable grocery stores to be delivered in 15 minutes using miniature fulfillment centers, along with many new products, including expanded advertising offerings and software analytics for grocery stores.

Fidji Simo, a former Facebook executive who became CEO of Instacart last year, said in an interview this week that he believes he oversees “the company’s third act.”

But he will still have to deal with market realities. The company identified the lower valuation as a way to increase the value of its stock rewards for new and existing employees, saying it has plenty of cash in the bank (more than $1 billion) and doesn’t have to raise any more anytime soon.

Instacart also argued that flagged stock fortunes are part of a larger tech trend rather than an anomaly. Other companies in the advertising and distribution businesses, such as Shopify, DoorDash, and Meta, Facebook’s parent company, have also seen their shares plummet recently.