Nov 12 (Reuters) - Instacart on Tuesday

forecast current-quarter gross transaction value (GTV) and core

profit below estimates, in signs that spending on online grocery

and food deliveries could temper in the holiday season amid

sticky inflation.

Competition has picked up in the online delivery space,

building on a pandemic boom that allowed firms such as

Instacart, UberEats and DoorDash ( DASH ) to diversify

their product offerings and raise transaction fees. However,

consumers have tempered spending as household budgets buckle

under pressure from higher prices.

Instacart has broadened its retail tie-ups, adding companies

such as Party City to its platform, while its partnership with

UberEats brought restaurants on board for food delivery.

"With the grocery market still vastly underpenetrated

online, we're taking an aggressive approach to reinvesting in

opportunities that we believe can drive long-term growth while

steadily expanding profitability," said CEO Fidji Simo in a

letter to shareholders.

The delivery firm expects fourth-quarter GTV - a key metric

that shows the value of products sold - in the range of $8.50

billion to $8.65 billion, below estimates of $10.20 billion, as

per data compiled by LSEG.

The target reflects tougher year-ago comparisons and an

impact from a cybersecurity breach at grocery store operator

Ahold Delhaize early in November, Instacart said.

In contrast, rival Doordash ( DASH ) forecast fourth-quarter

core profit above estimates.

Instacart, also known as Maplebear ( CART ), expects current-quarter

adjusted earnings before interest, taxes, depreciation and

amortization (EBITDA) between $230 million and $240 million,

below estimates of about $243.20 million.

The company posted third-quarter net income of $118 million,

or 42 cents per share, compared with a loss of $2 billion, or

$20.86 apiece last year, and authorized a $250 million increase

to its share buyback program.

Its third-quarter adjusted EBITDA of $227 million topped

estimates of $212.08 million, while GTV rose about 11% to $8.30

billion, beating estimates of $8.19 billion.

Total revenue of $852 million also surpassed

expectations of $844.1 million.