diff --git a/CHANGELOG.asciidoc b/CHANGELOG.asciidoc
index cda2444b0..a847dc1bd 100644
--- a/CHANGELOG.asciidoc
+++ b/CHANGELOG.asciidoc
@@ -22,6 +22,7 @@ endif::[]
 [float]
 ===== Changed
 - Change {pull}2526[#2526]
+- Racecar consumer instrumentation improvements {pull}
 
 [float]
 ===== Fixed
diff --git a/lib/elastic_apm/spies/racecar.rb b/lib/elastic_apm/spies/racecar.rb
index a92ec169b..f757969d6 100644
--- a/lib/elastic_apm/spies/racecar.rb
+++ b/lib/elastic_apm/spies/racecar.rb
@@ -16,8 +16,8 @@
 # under the License.
 
 begin
-require 'active_support/notifications'
-require 'active_support/subscriber'
+  require 'active_support/notifications'
+  require 'active_support/subscriber'
 
   # frozen_string_literal: true
   module ElasticAPM
@@ -25,37 +25,51 @@ module ElasticAPM
     module Spies
       # @api private
       class RacecarSpy
-        TYPE = 'kafka'
-        SUBTYPE = 'racecar'
+        TYPE = 'kafka'.freeze
+        SUBTYPE = 'racecar'.freeze
 
         # @api private
         class ConsumerSubscriber < ActiveSupport::Subscriber
           def start_process_message(event)
             start_process_transaction(event: event, kind: 'process_message')
           end
-          def process_message(_event)
+
+          def process_message(event)
+            record_outcome(event: event)
             ElasticAPM.end_transaction
           end
 
           def start_process_batch(event)
             start_process_transaction(event: event, kind: 'process_batch')
           end
-          def process_batch(_event)
+
+          def process_batch(event)
+            record_outcome(event: event)
             ElasticAPM.end_transaction
           end
 
           private # only public methods will be subscribed
 
           def start_process_transaction(event:, kind:)
-            ElasticAPM.start_transaction(kind, TYPE)
-            ElasticAPM.current_transaction.context.set_service(framework_name: 'racecar', framework_version: Racecar::VERSION)
+            ElasticAPM.start_transaction("#{event.payload[:consumer_class]}##{kind}", TYPE)
+            ElasticAPM.current_transaction.context.set_service(framework_name: 'racecar',
+              framework_version: Racecar::VERSION)
+          end
+
+          def record_outcome(event:)
+            transaction = ElasticAPM.current_transaction
+            error_present = !event.payload[:unrecoverable_delivery_error].nil?
+            transaction.outcome = error_present ? Transaction::Outcome::FAILURE : Transaction::Outcome::SUCCESS
+            transaction.done(error_present ? :error : :success)
           end
         end
 
+        # @api private
         class ProducerSubscriber < ActiveSupport::Subscriber
-          def start_deliver_message(event)
-            ElasticAPM.start_transaction('deliver_message',TYPE)
-            ElasticAPM.current_transaction.context.set_service(framework_name: 'racecar', framework_version: Racecar::VERSION)
+          def start_deliver_message(_event)
+            ElasticAPM.start_transaction('deliver_message', TYPE)
+            ElasticAPM.current_transaction.context.set_service(framework_name: 'racecar',
+              framework_version: Racecar::VERSION)
           end
 
           def deliver_message(_event)
@@ -71,7 +85,7 @@ def install
       register 'Racecar', 'racecar', RacecarSpy.new
     end
   end
-
 rescue LoadError
   # no active support available
+  warn "ActiveSupport not found."
 end
diff --git a/spec/elastic_apm/spies/racecar_spec.rb b/spec/elastic_apm/spies/racecar_spec.rb
index 2d33f55ab..2bc905e38 100644
--- a/spec/elastic_apm/spies/racecar_spec.rb
+++ b/spec/elastic_apm/spies/racecar_spec.rb
@@ -18,28 +18,72 @@
 # frozen_string_literal: true
 
 require 'spec_helper'
-
 begin
   require 'active_support/notifications'
-  require "active_support/subscriber"
+  require 'active_support/subscriber'
   require 'racecar'
-
   module ElasticAPM
     RSpec.describe 'Spy: Racecar', :intercept do
+      let(:instrumentation_payload) do
+        { consumer_class: 'SpecConsumer',
+          topic: 'spec_topic',
+          partition: '0',
+          offset: '1',
+          create_time: Time.now,
+          key: '1',
+          value: { key: 'value' },
+          headers: { key: 'value' } }
+      end
       it 'captures the instrumentation' do
         with_agent do
-          ActiveSupport::Notifications.instrument('start_process_message.racecar')
-          ActiveSupport::Notifications.instrument('process_message.racecar') do
+          ActiveSupport::Notifications.instrument('start_process_message.racecar', instrumentation_payload)
+          ActiveSupport::Notifications.instrument('process_message.racecar', instrumentation_payload) do
             # this is the body of the racecar consumer #process method
           end
           first_transaction = @intercepted.transactions.first
           expect(first_transaction).not_to be_nil
-          expect(first_transaction.name).to eq('process_message')
+          expect(first_transaction.name).to eq("#{instrumentation_payload[:consumer_class]}#process_message")
           expect(first_transaction.type).to eq('kafka')
+          expect(first_transaction.context.service.framework.name).to eq('racecar')
+        end
+      end
+
+      describe 'transaction outcome' do
+        it 'records success when no delivery error happen' do
+          with_agent do
+            ActiveSupport::Notifications.instrument('start_process_message.racecar', instrumentation_payload)
+            ActiveSupport::Notifications.instrument('process_message.racecar', instrumentation_payload) do
+              # this is the body of the racecar consumer #process method
+            end
+            first_transaction = @intercepted.transactions.first
+            expect(first_transaction.outcome).to eq(Transaction::Outcome::SUCCESS)
+          end
+        end
+        it 'records failure when with a unrecoverable delivery error' do
+          instrumentation_payload[:unrecoverable_delivery_error] = true
+          with_agent do
+            ActiveSupport::Notifications.instrument('start_process_message.racecar', instrumentation_payload)
+            ActiveSupport::Notifications.instrument('process_message.racecar', instrumentation_payload) do
+              # this is the body of the racecar consumer #process method
+            end
+            first_transaction = @intercepted.transactions.first
+            expect(first_transaction.outcome).to eq(Transaction::Outcome::FAILURE)
+          end
+        end
+        it 'records failure when with a recoverable delivery error' do
+          instrumentation_payload[:unrecoverable_delivery_error] = false
+          with_agent do
+            ActiveSupport::Notifications.instrument('start_process_message.racecar', instrumentation_payload)
+            ActiveSupport::Notifications.instrument('process_message.racecar', instrumentation_payload) do
+              # this is the body of the racecar consumer #process method
+            end
+            first_transaction = @intercepted.transactions.first
+            expect(first_transaction.outcome).to eq(Transaction::Outcome::FAILURE)
+          end
         end
       end
     end
   end
-
 rescue LoadError # in case we don't have ActiveSupport
-end
\ No newline at end of file
+  warn "ActiveSupport not found, skipping."
+end