Instacart website<\/a>, the company can boast over 500 million products, with over 40,000 retail partners across 5,500+ cities.<\/p>\n\n\n\nThe business model works at scale and continues to grow. It is easy to see how Instacart’s revenue can continue to climb with these numbers.<\/p>\n\n\n\n
Instacart makes money by having such a variety of options to encourage users to shop on their app for convenience and leveraging multiple revenue streams within the app itself, such as commissions, fees, subscription services, and advertising.<\/p>\n\n\n\n
In light of the coronavirus pandemic, people are ordering takeout from restaurants instead of going out for dinner because they don’t want to be exposed to the virus by waiting in line at a restaurant.<\/p>\n\n\n\n
Many US and Canadian consumers shifted their shopping patterns during the COVID-19 crisis, resulting in an increase in demand for grocery delivery services like Instacart. In 2020, in just eight weeks, the company’s army grew to nearly half a million people.<\/p>\n\n\n\n
Instacart’s Users and Employees<\/strong><\/p>\n\n\n\nInstacart has 9.6 million users a month and has 500,000 shoppers who deliver orders. It has 10,000 employees. <\/p>\n\n\n\n
Instacart’s Revenue<\/strong><\/p>\n\n\n\nInstacart, being a private company, does not have to make its revenue numbers public. According to data from analytics firm SecondMeasure, during the first two months of COVID-19 panic buying, Instacart delivered more groceries than Walmart across the country. It was second only to Amazon.com at the time. <\/p>\n\n\n\n
Instacart’s Funding and Valuation <\/strong><\/p>\n\n\n\nCrunchBase says Instacart has raised over $2.7 billion in VC funding in 17 funding rounds. Their valuation during this latest round in March 2021 was $39B. Investors included Sequoia Capital, Andreessen Horowitz and Tiger Global Management, Kleiner Perkins, Thrive Capital, and many others. <\/p>\n\n\n\n
<\/span>Final Thoughts<\/strong><\/span><\/h2>\n\n\n\nInstacart has been under threat by an increasing number of well-funded competitors. Mehta owns around 10% of the company. Instacart, being a privately held company is under pressure to justify its high valuation and is expected to go public soon. There were news reports that Instacart was entering the grocery business as well.<\/p>\n\n\n\n
There’s no doubt that the company has made a significant impact on people’s lives during the pandemic. However, post the pandemic, it would be interesting to see if the company can maintain its market share and fend off competitors or lose some ground to other players.<\/p>\n","protected":false},"excerpt":{"rendered":"
Instacart has undoubtedly experienced some significant growth over the last couple of years. This service, one of the biggest grocery delivery apps, is an interesting case. As users continue to download grocery apps at a record pace, Instacart draws in new users and workers. How exactly does Instacart make money, and what is the Instacart business…<\/p>\n","protected":false},"author":1,"featured_media":15360,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"qubely_global_settings":"","qubely_interactions":"","_editorskit_title_hidden":false,"_editorskit_reading_time":7,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_mo_disable_npp":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false},"categories":[56],"tags":[],"qubely_featured_image_url":{"full":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money.jpg",1200,800,false],"landscape":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money-1200x750.jpg",1200,750,true],"portraits":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money-540x320.jpg",540,320,true],"thumbnail":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money-150x150.jpg",150,150,true],"medium":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money-300x200.jpg",300,200,true],"medium_large":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money-768x512.jpg",768,512,true],"large":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money-1024x683.jpg",1024,683,true],"1536x1536":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money.jpg",1200,800,false],"2048x2048":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money.jpg",1200,800,false],"qubely_landscape":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money-1200x750.jpg",1200,750,true],"qubely_portrait":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money-540x320.jpg",540,320,true],"qubely_thumbnail":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/01\/How-does-Instacart-make-money-140x100.jpg",140,100,true]},"qubely_author":{"display_name":"bazaarexpert","author_link":"https:\/\/bazaarexpert.com\/author\/bazaarexpert\/"},"qubely_comment":0,"qubely_category":"Business Models<\/a>","qubely_excerpt":"Instacart has undoubtedly experienced some significant growth over the last couple of years. This service, one of the biggest grocery delivery apps, is an interesting case. As users continue to download grocery apps at a record pace, Instacart draws in new users and workers. How exactly does Instacart make money, and what is the Instacart business...","_links":{"self":[{"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/posts\/15357"}],"collection":[{"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/comments?post=15357"}],"version-history":[{"count":4,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/posts\/15357\/revisions"}],"predecessor-version":[{"id":15373,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/posts\/15357\/revisions\/15373"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/media\/15360"}],"wp:attachment":[{"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/media?parent=15357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/categories?post=15357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/tags?post=15357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}