Instacart is an American company that operates as a same-day grocery delivery service. Customers select groceries through a web application from various retailers and delivered by a personal shopper. Up until the end of 2017, Instacart only had operations and services in the United States. In November 2017, the company announced plans to begin delivery in Toronto and Vancouver.
Video Instacart
Service
Instacart's service is mainly provided through a smartphone app, available on iOS and Android platforms, apart from its website. Customers can pay with Android Pay and Apple Pay on their respective platforms. Initially Instacart shoppers simply went to a store and purchased the ordered items at retail and, in addition to the delivery charge, added a markup of 10 to 20 percent. As the business has developed, the firm has established relationships with grocery firms which share their (store) existing markup, allowing Instacart users to shop at in-store prices.
Maps Instacart
History
Instacart was started by Apoorva Mehta, a former Amazon employee. The company launched its service in San Francisco, Mountain View and Palo Alto. The startup company had a $2 billion valuation by investors as of May 2015. Investors include Kleiner Perkins Caufield & Byers (KPCB), Comcast Ventures, Dragoneer Investment Group, Thrive Capital, Valiant Capital, Andreessen Horowitz, Khosla Ventures, Sequoia Capital, Y Combinator and Angel Investor Martin Romero. As of January 2015, total funding was about $275 million. At that time, Forbes named Instacart "the Most Promising Company in America". In 2016, Whole Foods Market Inc. invested in Instacart in conjunction with its partnership.
In April 2015, the firm had about 200 employees. Actual shopping and delivery is done primarily by independent contractors, though a new policy will allow some Instacart shoppers to choose to be part-time employees. During 2014, Instacart expanded to 15 cities: Atlanta; Austin; Boston; Boulder; Chicago; Denver; Houston; Los Angeles; New York City; Philadelphia; Portland, Oregon; San Francisco; San Jose; Seattle and Washington, DC, with plans to expand further in 2015. In September 2015, the company hired Ravi Gupta as its first CFO.
In September 2016, the company announced an expansion to their North Chicago Zone and in October 2016, also expansion of their Orange County and Minneapolis coverage areas. As of March 2017, Instacart serviced 36 markets, composed of 1,200 cities in 25 states: Arizona, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Illinois, Indiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Texas, Virginia, and Washington. In March 2017, it was reported that Instacart raised $400 million in new venture capital which valued the grocery delivery service at approximately $3.4 billion.
In November 2017, Instacart announced a partnership with Loblaw Companies to begin delivery from select Loblaws, Real Canadian Superstore, and T&T Supermarket locations in Toronto and Vancouver. The partnership is expected to add more cities and store banners to the program in 2018.
In January 2018, the company acquired Toronto-based Unata, a white-label platform for grocers to offer their own grocery delivery service. Unata will continue to operate independently, as a subsidiary of Instacart. The company also offers a service for personalized flyers and digital coupons to mid-sized grocers.
In February 2018, the company raised $200 million in a funding round led by Coatue Management, as well as Glade Brook Capital Partners and existing investors.
Controversy
In March 2017, Instacart agreed to pay a $4.6 million class action settlement stemming from the misclassification of its shopper employees as independent contractors. The suit alleged 18 violations, including improper tip pooling and failure to reimburse workers for business expenses.
Instacart has also faced intense criticism from its workers and tech media for removing the option of its customers to tip their shopper in November 2016. Backlash against the policy forced the company to reinstate the tipping option only weeks later.
In November 2017, a large number of Instacart workers participated in a strike against the company, alleging wages as low as $1 an hour. Instacart claimed that the strike had no impact on its operations.
In April 2018, Instacart instituted a controversial non-waiveable 5% service fee on all orders.
References
External links
- Apoorva Mehta on NPR podcast How I Built This
- Interview with co-founder and early engineers
Source of article : Wikipedia
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