Instacart
San Francisco, California, U.S.
Industry: Private
Region: US 🇺🇸
Founded: 2012
Expected Valuation: $13 billion
IPO Date: To be Determined
Instacart Financial, Inc.
Key Company Facts
| Founded | 2012 |
| Headquarters | San Francisco, US |
| Sector | Retail |
| Industry | Fintech/Online Banking |
| Founders | Apoorva Mehta, Max Mullen, Brandon Leonardo |
| Number of employees | 3,000 (2022) |
| IPO Date | 2023 (expected) |
| Number of investors | 37 |
| Total funding | $2.9 billion USD |
| Number of account holders | 13.7 million |
| Valuation estimate | $13 billion USD |
Company Overview & History
Instacart is a prominent online grocery delivery service that connects customers with personal shoppers who fulfill their orders from local stores.
The company was founded in 2012 by Apoorva Mehta, Max Mullen, and Brandon Leonardo. Initially launched in San Francisco, Instacart quickly expanded its services to major cities across the United States and Canada.
Today, it operates in thousands of cities and serves millions of customers, making it one of the leading players in the online grocery delivery industry.
Financial Performance
Instacart has experienced substantial growth and success since its inception. The company’s financial performance has been impressive, with steady revenue growth over the years.
It has attracted significant investments from venture capitalists, raising billions of dollars to fuel its expansion and innovation. Additionally, Instacart has entered into strategic partnerships with major grocery chains, further solidifying its position in the market.
Revenue
| Year | Revenue (USD) |
|---|---|
| 2013 | $10 million |
| 2014 | $75 million |
| 2015 | $120 million |
| 2016 | $185 million |
| 2017 | $300 million |
| 2018 | $525 million |
| 2019 | $735 million |
| 2020 | $1500 million |
| 2021 | $1800 million |
| 2022 | $2500 million |
Business Model
Instacart operates on a unique business model that bridges the gap between customers, personal shoppers, and partner stores. Customers can place their grocery orders through the Instacart app or website, specifying their desired items and preferred stores.
Personal shoppers receive these orders and shop for the requested items at local partner stores. Once the shopping is complete, the personal shopper delivers the order directly to the customer’s doorstep.
Instacart generates revenue through various channels, including delivery fees, service fees, and partnerships with grocery retailers.
Estimated Valuation
| Year | Valuation (USD) |
|---|---|
| 2016 | $2 billion |
| 2017 | $3.4 billion |
| 2018 | $7.6 billion |
| 2020 | $13.7 billion |
| 2021 | $39 billion |
| 2022 | $24 billion |
Risk Factors
While Instacart has achieved remarkable success, it also faces several risk factors that could impact its future prospects. One significant risk is intense competition in the online grocery delivery market.
Competitors such as Amazon Fresh and Walmart Grocery pose a threat, as they have the resources and infrastructure to scale their operations rapidly. Instacart also relies on the availability of personal shoppers, and any shortage or issues with the quality of service could negatively affect customer satisfaction and retention.
Additionally, changing consumer preferences and market dynamics may require Instacart to adapt and innovate continually to stay ahead of the competition.
Market Opportunity
Instacart operates in a market with significant growth potential. The COVID-19 pandemic has accelerated the shift towards online grocery shopping, with more consumers embracing the convenience and safety of having groceries delivered to their homes. This trend is expected to continue even as the pandemic recedes.
Furthermore, the online grocery delivery market is still relatively untapped, with a large portion of consumers yet to adopt this mode of shopping. Instacart can seize this opportunity by expanding its services to new geographical regions, partnering with additional grocery chains, and enhancing its technological capabilities to provide a seamless and efficient shopping experience.
Competitors
- Shipt
- Amazon Fresh
- Walmart Grocery Delivery
- Postmates
- FreshDirect
- Google Express
- Peapod
- InstaShop