The groceries collaborative deliveries service just closed a $150 millions round. Amazon’s new delivery services force Instacart to accelerate its development and international implantation.
Funded in 2012, Instacart allows its users to order groceries products directly on its website. Buyers then go shopping for their clients and deliver their commands in less than an hour. This private individuals-only relationship since to work really well. Last December, Instacart latest teams got implanted in Canada and in additional American cities. The startup gains money thanks to sales and delivery margins. Recently, it also partnered up with national groceries chains and agreed to share revenues coming from its services.
The company just closed a $150M round, extension of a previous series E round bringing more than $200M already. Thanks to these additional funds, the valorisation of the company is now of 4.35 billions dollars. Instacart plans to hire 200 new collaborators in 2018 to accelerate its development.
Its main threat : Amazon
With this round Instacart also wants to fight Amazon’s monopole. The GAFA recently acquired the Whole Foods Market chains, with whom Instacart already have had a partnership. Even worse, Amazon announced launching Amazon Fresh and Amazon Fresh Pick Up not long ago. The first one allows users to get fresh, frozen and groceries goods delivered. The second one to command food and goods directly on Amazon’s website, and to get them delivered directly outside the shop, without having to get out of their car. The group also plans on launching dedicated delivery services for its Whole Foods shops.
To defend itself from Amazon and to keep its market shares, Instacart started by acquiring the Unata startup, a company allowing grocery stores to sell their products on the internet. Its next goals are to multiply its partnerships with new chains and to continue getting implanted in more American and Canadian cities.