“To be the world leader in online grocery”

Founded: 2012 in San Francisco, USA

Category: Supply Chain/ Logistics

Primary office: San Francisco, CA

Core technical team: San Francisco, CA

Status: Private

Employees: 1200

Amount raised: $1.9 billion  (11 rounds – November 2018)

OVERVIEW

  • Provides an on-demand grocery delivery service to millions of North Americans. It enables users to create their shopping lists across various grocery stores and connects them with independent contracted “personal shoppers” to handpick grocery items on users’ list and deliver to their doorstep in less than 1 hour, consequently, creating jobs for shoppers, making life easier for users  and driving increased revenue for stores

 

PERFORMANCE METRICS

  • Valuation: $7.6 billion (2019)
  • Annual Revenue: $2.9 billion (2019)

 

ACHIEVEMENTS

  • High profile Venture- backed – Ycombinator, Sequoia capital, etc.
  • 16 million monthly website visits
  • Largest online grocery catalog
  • Operates in over 5,500 cities and 25,000 different grocery stores
  • Over 175,000 active shoppers in US & Canada

Sells

  • Online Marketplace
  • Instacart Express – offers unlimited grocery delivery service at a fee
  • Instacart Meals – offers user-friendly order and delivery of made-to-order/build your own food option for meals (in partnership with Publix’s made-to-order food counter)

Channels

  • Online and Mobile Apps (iOS & Android)
  • Partners with large and popular grocery chains – Loblaws, Walmart, Costco, Petco, Publix, Sam’s club
  • Affiliate marketing

Competencies

  • Founder-led Management team
  • Big data Analytics & Machine learning
  • Logistics, delivery

Resources

Assets

  • Partners with over 350 retail brands with 25,000 stores across US and Canada
  • API integration with partner stores; ordering and check out systems
  • “Shop Talk”, a shoppers’ community – offering support, news updates, tips and tricks for its growing number of shoppers
  • Highly secured payment platforms – in partnership with Stripe and Marqeta

Processes

  • User-friendly omni-channel platform for easy click and add to grocery list.
  • Quick scan & Instant cash-out features for seamless enjoyable experience for its shoppers
  • Smart cart – personalized offerings on combo options and discounts on grocery items
  • Integrated Mobile checkout compatible with Apple pay or Google pay

Priorities

  • Launch in new markets
  • Improve AI algorithm for improved user experience
  • Grow workforce to meet growing demand
  • Potentially create an innovative grocery retail model (Forbes)

Assertions That Best Describe What the Company Did to Scale Early, Rapidly & Securely

  1. Develop and sell products that address a problem, job to be done or a need that is shared by a large and growing number of individuals and organizations in various regions to increase sales.
  2. Continuously improve the user interfaces and applications that directly influence the entirety of the customer experience including personalized content, quality messaging, and the delivery and returns process to increase sales
  3. Increase sales by applying big-data analytics to produce information about users, suppliers and customers
  4. Increase market share by applying digital technology to brand, market, sell, and service customers more cost-effectively than competitors
  5. Increase value by arranging and directing a community comprised of groups that are external and internal to the company and connect everything needed to scale
  6. Increase the company’s value by continuously seeking and receiving funding to support the company’s plan to scale and improve its image in the marketplace

References

Clark, K. 2018. Instacart raises another $600m at $7.6billion valuation. [online]. TechCrunch. https://techcrunch.com/2018/10/16/instacart-raises-another-600m-at-a-7-6b-valuation/

Crunchbase. 2019. Instacart. https://www.crunchbase.com/organization/instacart

Instacart website. https://www.instacart.com/

Owler. 2019. Instacart. https://www.owler.com/company/instacart


Contributors

  • Yinka Olanrewaju-Olawepo
  • Dan Craigen