Feb 25 (Reuters) - Instacart forecast

first-quarter gross transaction value (GTV) above Wall Street

estimates on Tuesday, betting on efforts to add low-and-no-cost

delivery options to drive spending on its online grocery

delivery platform.

Consumers have been increasingly opting to shop online for

products ranging from grocery to home furnishing items on their

mobile devices helping delivery firms including Instacart.

The company, formally known as Maplebear ( CART ), got a boost during

the all-important holiday quarter as it introduced low-to-no

cost deliveries on some items.

The San Francisco-based company forecast first-quarter GTV,

a key metric that shows value of products sold based on prices

shown on Instacart, to grow up to 10% to $9.15 billion, compared

with analysts' estimates of 7.6% growth to $8.95 billion,

according to data compiled by LSEG.

Instacart's fourth-quarter GTV rose 10% to $8.65 billion,

beating estimates of a 9% increase to $8.60 billion.

Its advertising revenue rose 10% in the quarter ended

December 31, compared with 7% a year earlier.

However, Instacart forecast first-quarter core profit

between $220 million and $230 million, compared with analysts'

estimates of $238 million.

Rival DoorDash ( DASH ) also forecast quarterly adjusted

core profit below estimates earlier this month due to an

increase in advertising expenses during the holiday season.