Sources say fresh distribution platform Instacart plans to enter the small business market to challenge Amazon and Wal-Mart

Instacart, a US fresh food distribution platform, is preparing to launch a platform tailor-made for small businesses to challenge retail giants Amazon and Wal-Mart, according to people familiar with the matter.

The new platform being developed by Instacart, known as "Instacart Business", is aimed at small business users and will display a range of carefully selected items such as office supplies, cleaning products and snacks, the person familiar with the matter said.

Analysts say the move will help Instacart expand its business beyond household grocery distribution, thereby expanding revenue ahead of IPO. At present, Instacart is preparing for IPO.

It was reported yesterday that Instacart has been updating IPO documents and may push forward the listing process once market conditions improve.