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{{short description|Internet-based grocery delivery service}}
{{short description|Internet-based grocery delivery service}}
{{Use American English|date=August 2023}}
{{Infobox website
{{Use mdy dates|date=August 2023}}
| name = Instacart
{{Infobox company
| name = Maplebear Inc.
| logo = Instacart_logo_and_wordmark.svg
| logo = Instacart_logo_and_wordmark.svg
| logo_caption = Logo since 2022
| type = [[Privately held company|Private]]
| trade_name = Instacart
| location = [[San Francisco]], [[California]], [[United States|U.S.]]
| type = [[Public company|Public]]
| founder = Apoorva Mehta<BR>Max Mullen<BR>Brandon Leonardo
| traded_as = {{ubl|{{NASDAQ|CART}}|[[Russell 1000]] component}}
| key_people = Apoorva Mehta ([[Chief executive officer|CEO]])
| industry = [[Retail]]
| industry = [[Retail]]
| founders = {{unbulleted list|[[Apoorva Mehta]]|[[Max Mullen]]|Brandon Leonardo}}
| owner = Maplebear Inc.<ref>{{cite web | url=https://www.instacart.com/terms | title=Terms of Service | website=Instacart}}</ref>
| founded = {{Start date and age|2012|6}}
| services = [[Grocery Delivery]]
| hq_location = [[50 Beale Street]]<br />[[San Francisco, California]], U.S.
| foundation = {{start date and age|2012}}
| area_served = United States and Canada
| website = {{URL|https://www.instacart.com/}}<br>{{URL|https://www.instacart.ca/}}
| key_people = [[Fidji Simo]] ([[CEO]])<ref>{{cite news | last1=Sorvino | first1=Chloe | title=Instacart Taps Facebook Executive As CEO, Names Founder Apoorva Mehta To Executive Chairman | url=https://www.forbes.com/sites/chloesorvino/2021/07/08/instacart-taps-facebook-executive-as-ceo-names-founder-apoorva-mehta-to-executive-chairman | work=[[Forbes]] | date=July 8, 2021 | access-date=July 13, 2021 | archive-date=July 11, 2021 | archive-url=https://web.archive.org/web/20210711063320/https://www.forbes.com/sites/chloesorvino/2021/07/08/instacart-taps-facebook-executive-as-ceo-names-founder-apoorva-mehta-to-executive-chairman/ | url-status=live }}</ref>
| area_served = 5,500 cities in the [[United States|U.S.]] and [[Canada]]
| services = [[Grocery delivery]]<!--[[Alcohol carryout]]-->
| native_clients = [[iOS]], [[Android (operating system)|Android]]
| subsid = [[Caper AI]]
| revenue = {{nowrap|{{Increase}} {{US$|3.04 billion|link=yes}} (2023)}}
| operating_income = {{Decrease}} {{US$|-2.1 billion}} (2023)
| net_income = {{Decrease}} {{US$|-1.6 billion}} (2023)
| assets = {{Increase}} {{US$|4.73 billion}} (2023)
| equity = {{Increase}} {{US$|3.75 billion}} (2023)
| owners = {{unbulleted list|[[Sequoia Capital]] (18%)|[[D1 Capital Partners]] (13%)|[[Apoorva Mehta]] (10%)}}
| num_employees = 3,380 (2023)
| website = {{URL|https://instacart.com/}}<br />{{URL|https://instacart.ca/}}
| footnotes = <ref name=S1>{{Cite web | url=https://www.sec.gov/Archives/edgar/data/1579091/000119312523235646/d55348ds1a.htm |title=Maplebear Inc. Form S-1 |date=August 25, 2023 |publisher=[[U.S. Securities and Exchange Commission]]}}</ref><ref name=AR2023>{{Cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/0001579091/000157909124000027/cart-20231231.htm |title=2023 Annual Report (Form 10-K) |date=March 5, 2024 |publisher=U.S. Securities and Exchange Commission}}</ref>
}}
}}
[[File:Instacart carrot.svg|150px|thumb|The Instacart logo is a simplified carrot. Logo since 2022.]]'''Maplebear Inc.''',<ref name=S1/> [[doing business as]] '''Instacart''', is an American delivery company based in [[San Francisco]] that operates a grocery delivery and pick-up service in the United States and Canada accessible via a [[website]] and [[mobile app]].<ref>{{Cite news | url=https://www.fastcompany.com/90333469/instacart-offers-drivers-more-flexibility-on-when-and-what-they-deliver | title=Instacart offers drivers more flexibility on when and what they deliver | last=Captain | first=Sean | work=[[Fast Company]] | date=April 11, 2019 | access-date=May 8, 2019 | archive-date=January 15, 2021 | archive-url=https://web.archive.org/web/20210115030445/https://www.fastcompany.com/90333469/instacart-offers-drivers-more-flexibility-on-when-and-what-they-deliver | url-status=live }}</ref> It allows customers to order groceries from participating retailers with the shopping being done by a [[personal shopper]].<ref>{{Cite news |url=https://www.thekitchn.com/i-had-my-groceries-delivered-by-instacart-and-heres-how-it-went-214795 |title=How Instacart Works, What It Costs, And What You Should Know About Using It for Grocery Delivery |work=[[The Kitchn]] |access-date=September 9, 2020 |archive-date=January 12, 2015 |archive-url=https://web.archive.org/web/20150112005008/https://www.thekitchn.com/i-had-my-groceries-delivered-by-instacart-and-heres-how-it-went-214795 |url-status=live }}</ref> The company also provides alcohol delivery in states and provinces where it is allowed. It has partnerships with 1,500 retail banners comprising 85,000 stores.<ref>{{Cite web |last=PYMNTS |date=2024-05-02 |title=Instacart Becomes Kohl's Same-Day Delivery Partner, Continues Expansion Beyond Grocery |url=https://www.pymnts.com/news/delivery/2024/instacart-becomes-kohls-same-day-delivery-partner-continues-expansion-beyond-grocery/ |access-date=2024-07-09 |website=PYMNTS.com |language=en-US |archive-date=July 9, 2024 |archive-url=https://web.archive.org/web/20240709205346/https://www.pymnts.com/news/delivery/2024/instacart-becomes-kohls-same-day-delivery-partner-continues-expansion-beyond-grocery/ |url-status=live }}</ref><ref>{{Cite web |title=Instacart Revenue and Usage Statistics (2024) |url=https://www.businessofapps.com/data/instacart-statistics/ |access-date=2024-07-09 |website=Business of Apps |language=en-US |archive-date=April 26, 2024 |archive-url=https://web.archive.org/web/20240426115356/https://www.businessofapps.com/data/instacart-statistics/ |url-status=live }}</ref> Instacart reaches nearly 98% of SNAP households, offering delivery services from nearly 180 retail banners, including ALDI, Food Lion, Publix, The Save Mart Companies and Walgreens, spanning more than 30,000 stores across all 50 states and Washington D.C.<ref>{{Cite web |date=2024-08-23 |title=Instacart expands consumer savings |url=https://finance.yahoo.com/news/instacart-expands-consumer-savings-091526591.html |access-date=2024-09-11 |website=Yahoo Finance |language=en-US}}</ref> Since its founding, Instacart Marketplace has powered more than $100 billion of GTV and over 900 million orders with approximately 20 billion items ordered.<ref>{{Cite web |title=S-1 |url=https://www.sec.gov/Archives/edgar/data/1579091/000119312523221345/d55348ds1.htm |access-date=2024-06-12 |website=www.sec.gov |archive-date=February 16, 2024 |archive-url=https://web.archive.org/web/20240216201114/https://www.sec.gov/Archives/edgar/data/1579091/000119312523221345/d55348ds1.htm |url-status=live }}</ref>


==History==
'''Instacart''' is an American company that operates a grocery delivery and pick-up service in the [[United States]] and [[Canada]] with headquarters in [[San Francisco]].<ref>{{Cite news | url=https://www.fastcompany.com/90333469/instacart-offers-drivers-more-flexibility-on-when-and-what-they-deliver | title=Instacart offers drivers more flexibility on when and what they deliver | last=Captain | first=Sean | work=[[Fast Company]] | date=April 11, 2019}}</ref> The company offers service via a [[website]] and [[mobile app]] in 5,500 cities in all 50 U.S. states and Canadian provinces in partnership with over 350 retailers that have more than 25,000 grocery stores including [[Albertsons]], [[Aldi]], [[Big Lots]], [[C&S Wholesale Grocers]], [[Costco]], [[CVS Health]], [[Eataly]], [[Price Chopper Supermarkets|Price Chopper]], [[H-E-B]], [[Kroger]], [[Loblaw Companies]], [[Petco]], [[Publix]], [[Safeway Inc.]], [[Sam's Club]], [[Sprouts Farmers Market]], [[Staples Inc.|Staples U.S.]], [[Target Corporation]], [[Total Wine & More]], and [[Wegmans]].<ref>{{Cite news | url=https://www.wsj.com/articles/food-delivery-companies-acquire-a-taste-for-smaller-markets-11552383000 | title=As Food-Delivery Firms Court Smaller Markets, New Hurdles Emerge | first1=Heather | last1=Haddon | first2=Julie | last2=Jargon | work=[[The Wall Street Journal]] | date=March 12, 2019 | url-access=subscription | issn=0099-9660}}</ref><ref>{{Cite news | url=https://techcrunch.com/2018/10/16/instacart-raises-another-600m-at-a-7-6b-valuation/ | title=Instacart raises another $600M at a $7.6B valuation | first=Kate | last=Clark | work=[[TechCrunch]] | date=October 16, 2018| url-access=subscription}}</ref><ref name=bet>{{cite news | url=https://www.nytimes.com/2015/04/30/technology/personaltech/instacarts-bet-on-online-grocery-shopping.html | title=Instacart's Bet on Online Grocery Shopping | last=Manjoo | first=Farhad | authorlink=Farhad Manjoo | work=[[The New York Times]] | date=April 29, 2015}}</ref><ref>{{Cite web | url=https://www.instacart.com/locations | title=Instacart Service Areas | website=Instacart}}</ref><ref>{{Cite news | url=https://progressivegrocer.com/instacart-poised-accelerate-even-more-growth | title=Instacart Is Poised to Accelerate Even More Growth | first=Gina | last=Acosta | website=Progressive Grocer | date=January 14, 2020}}</ref><ref>{{Cite news | url=https://www.cnbc.com/2019/05/15/instacart-ceo-apoorva-mehta-were-ready-for-split-from-whole-foods.html | title=Instacart and Whole Foods officially part ways, and the CEO says he's ready | first1=Deirdre | last1=Bosa | first2=Paayal | last2=Zaveri | work=[[CNBC]] | date=May 15, 2019}}</ref><ref>{{Cite news | url=https://techcrunch.com/2019/03/12/instacarts-alcohol-delivery-is-now-available-in-14-states/ | title=Instacart’s alcohol delivery is now available in 14 states | first=Jordan | last=Crook | work=[[TechCrunch]] | date=March 12, 2019}}</ref><ref>{{Cite web|title=Who doesn’t sell groceries but delivers via Instacart? Staples!|url=https://chainstoreage.com/who-doesnt-sell-groceries-delivers-instacart-staples|access-date=2020-06-15|website=Chain Store Age|language=en}}</ref><ref>{{Cite web|date=2020-06-04|title=C&S Wholesale, Instacart team up to bring online grocery to 3,000 independents|url=https://www.supermarketnews.com/online-retail/cs-wholesale-instacart-team-bring-online-grocery-3000-independents|access-date=2020-06-15|website=Supermarket News|language=en}}</ref>
Instacart, since its inception, has grown and expanded from just serving in San Francisco to across the United States<ref>{{Cite web |last=Gorden |first=Audrey |date=2017-04-20 |title=Instacart expands online grocery shopping to Oak Park, Oak Lawn and Franklin Park |url=https://www.chicagotribune.com/2017/04/20/instacart-expands-online-grocery-shopping-to-oak-park-oak-lawn-and-franklin-park/ |access-date=2024-07-29 |website=Chicago Tribune |language=en-US}}</ref><ref>{{Cite web |date=October 10, 2016 |title=Instacart Expands In OC, Adds 99 Ranch |url=https://www.socaltech.com/instacart_expands_in_oc_adds_99_ranch/s-0067531.html}}</ref><ref>{{Cite web |date=2016-11-16 |title=Which Online Grocery Delivery Service In The Twin Cities Is Best? - CBS Minnesota |url=https://www.cbsnews.com/minnesota/news/grocery-delivery-services/ |access-date=2024-07-29 |website=www.cbsnews.com |language=en-US}}</ref> and later on even in Canada in 2017.<ref>{{Cite web |date=28 September 2017 |title=Instacart Is Expanding to Canada in Amazon Battle |url=https://www.wsj.com/articles/instacart-is-expanding-to-canada-in-amazon-battle-1506621123}}</ref><ref>{{Cite web |last=Kopun |first=Francine |date=2017-11-15 |title=Walmart, Loblaws face off over home delivery of groceries |url=https://www.thestar.com/business/walmart-loblaws-face-off-over-home-delivery-of-groceries/article_4d76d13d-2553-507c-b643-9ec046d8384e.html |access-date=2024-07-29 |website=Toronto Star |language=en}}</ref>


===Corporate history===
Orders are fulfilled and delivered by an Instacart [[personal shopper]], who picks, packs, and delivers the order within the customer's designated time frame—within one hour or up to five days in advance.<ref>{{Cite news | url=https://shenandoahcountryq102.iheart.com/content/2019-01-08-instacart-launches-same-day-grocery-delivery-service-in-winchester/ | title=Instacart Launches Same-Day Grocery Delivery Service in Winchester | author=Lori | work=[[iHeartMedia]] | date=January 8, 2019}}</ref><ref>{{Cite news | url=https://progressivegrocer.com/fresh-market-expands-instacart-all-stores | title=The Fresh Market Expands Instacart to All Stores | work=Progressive Grocer | date=May 16, 2019}}</ref> Customers pay with personal debit or [[credit card]]s, [[Google Pay]], and [[Apple Pay]]. The delivery fee is $3.99 for orders of $35 or more and $7.99 under that amount. Regardless of the cost of the order, there is a 5% service fee with a minimum of $2 owed. With an Instacart Express membership for $9.99/month or an annual fee of $99, customers get waived delivery fees on orders over $35, but still must pay the service fee. Customers are also requested to leave a [[gratuity]].<ref>{{Cite news | url=https://www.newsobserver.com/news/local/article241797416.html | title=Never had your groceries delivered but ready to try? Here’s what you can expect. | first=Brooke | last=Cain | work=[[The News & Observer]] | date=April 7, 2020}}</ref> Retailers set the price of individual items on the Instacart marketplace, which are mostly the same prices as in-store.<ref>{{Cite news | url=https://www.wmar2news.com/matterformallory/grocery-stores-charging-instacart-customers-higher-rates-than-in-store-shoppers | title=Grocery stores charging Instacart customers higher rates | first=Mallory | last=Sofastaii | work=[[WMAR-TV]] | date=April 2, 2019}}</ref> Instead of delivery, using the Instacart Pickup option, customers can pickup their packaged orders from the store.<ref name=pickup>{{cite news | url=https://www.reuters.com/article/us-instacart-expansion/instacart-launches-pickup-service-across-u-s-idUSKCN1NC2HA | title=Instacart launches pickup service across U.S | first=Soundarya | last=J | work=[[Reuters]] | date=November 7, 2018}}</ref>
After getting inspiration from being low on groceries without owning a car<ref name=quit>{{cite news | url=https://www.cnbc.com/2023/09/20/instacart-founder-launched-20-failed-companies-now-hes-a-billionaire.html | title=37-year-old quit Amazon and started 20 companies before coming up with Instacart—now he's worth $1.1 billion | first=Tom | last=Huddleston Jr. | work=[[CNBC]] | date=September 20, 2023 | access-date=October 13, 2023 | archive-date=October 14, 2023 | archive-url=https://web.archive.org/web/20231014065900/https://www.cnbc.com/2023/09/20/instacart-founder-launched-20-failed-companies-now-hes-a-billionaire.html | url-status=live }}</ref><ref>{{Cite web |title=How Apoorva Mehta Struck Gold With Instacart's $9.9 Billion IPO |url=https://www.forbesindia.com/article/take-one-big-story-of-the-day/how-apoorva-mehta-struck-gold-with-instacarts-99-billion-ipo/88397/1 |access-date=2024-07-29 |website=Forbes India |language=en}}</ref> as well as his trips to the grocery store by bus in the cold while growing up in Canada,<ref name=qa>{{Cite news | url=https://www.ycombinator.com/blog/qa-with-apoorva-mehta-founder-ceo-instacart/ | title=Q&A with Apoorva Mehta, Founder & CEO, Instacart | work=[[Y Combinator]] | date=October 17, 2018 | access-date=October 13, 2023 | archive-date=September 21, 2023 | archive-url=https://web.archive.org/web/20230921210552/https://www.ycombinator.com/blog/qa-with-apoorva-mehta-founder-ceo-instacart/ | url-status=live }}</ref> [[Apoorva Mehta]] founded Instacart in 2012 at age 26. He tried to apply for funding through [[Y Combinator]] but missed the deadline. He eventually got a meeting by using the Instacart [[mobile app]] to deliver a six-pack of beer from [[21st Amendment Brewery]] to a Y Combinator partner<ref name=quit/> and was admitted to the summer of 2012 batch.<ref>{{Cite news | url=https://www.bizjournals.com/bizjournals/news/2014/12/31/ex-amazon-engineer-apoorva-mehta-instacart.html |title=How this ex-Amazon engineer launched $2 billion startup Instacart | first=Teresa | last=Novellino | work=[[American City Business Journals]] | date=December 31, 2014}}</ref> Y Combinator helped Mehta raise $2.3 million in funding<ref name=quit/> and enabled him to meet his two co-founders, Max Mullen and Brandon Leonardo.<ref name=qa/><ref>{{Cite web |last=O'Brien |first=Sara Ashley |date=2014-12-30 |title=Grocery delivery startup banks $220 million |url=https://money.cnn.com/2014/12/30/smallbusiness/instacart-220-million-grocery/index.html |access-date=2024-07-29 |website=CNNMoney}}</ref> The company’s name is a combination of "maple," in reference to Canada, and "bear," for the logo on the California state flag, as Mehta grew up in Canada and moved to California.<ref>{{Cite web |last1=Moyer |first1=Liz |last2=Cho |first2=Janet H. |title=Instacart Is Also Called Maplebear. What's in a Name? |url=https://www.barrons.com/articles/instacart-maplebear-name-ipo-stock-305c8bfe |access-date=2023-11-21 |website=barrons |language=en-US |archive-date=November 21, 2023 |archive-url=https://web.archive.org/web/20231121072902/https://www.barrons.com/articles/instacart-maplebear-name-ipo-stock-305c8bfe |url-status=live }}</ref>


In 2020 during the [[COVID-19 pandemic]], Instacart implemented contactless delivery, safety kits and guidelines for shoppers.<ref>{{Cite web |title=Instacart to distribute health and safety kits to its shopper community |url=https://www.supermarketnews.com/health-wellness/instacart-to-distribute-health-and-safety-kits-to-its-shopper-community |access-date=2024-10-31 |website=www.supermarketnews.com |language=en}}</ref>
A 2019 study done by [[NERA Economic Consulting]] determined that Instacart was responsible for more than 23,000 jobs across the 4 states of [[California]], [[Illinois]], [[Washington (state)|Washington]], and [[New York (state)|New York]]. This increase was named by Instacart as the "Instacart Effect".<ref>{{Cite news|last=Acosta|first=Gina|date=February 12, 2020|title=How Instacart Drives Grocery Growth|website=Progressive Grocer|url=https://progressivegrocer.com/how-instacart-drives-grocery-growth}}</ref><ref>{{Cite web|date=|title=Commissioned Study Quantifies 'Instacart Effect' on Sales, Employment|url=https://www.winsightgrocerybusiness.com/technology/commissioned-study-quantifies-instacart-effect-sales-employment|url-status=live|archive-url=|archive-date=|access-date=2020-08-21|website=Winsight Grocery Business|language=en}}</ref>


In July 2021, [[Fidji Simo]] was appointed CEO, while Mehta transitioned to Executive Chairman of the Board.<ref>{{Cite news | title=Fidji Simo tapped as CEO of Instacart, shrinking the ranks of top female execs at Facebook | url=https://fortune.com/2021/07/08/fidji-simo-ceo-instacart-leaving-facebook-female-executives/ | first=EMMA | last=HINCHLIFFE | work=[[Fortune (magazine)|Fortune]] | date=July 8, 2021 | url-access=subscription | access-date=July 27, 2021 | archive-date=July 27, 2021 | archive-url=https://web.archive.org/web/20210727231632/https://fortune.com/2021/07/08/fidji-simo-ceo-instacart-leaving-facebook-female-executives/ | url-status=live }}</ref>
As of its most recent funding round, in June 2020, the company was valued at $13.7 billion.<ref>{{Cite web|date=2020-06-11|title=Instacart Valuation Hits $13.7 Billion in Pandemic Investment|url=https://www.bloomberg.com/tosv2.html?vid=&uuid=30c98410-af0d-11ea-939f-f15bb868adc6&url=L25ld3MvYXJ0aWNsZXMvMjAyMC0wNi0xMS9pbnN0YWNhcnQtdmFsdWF0aW9uLWhpdHMtMTMtNy1iaWxsaW9uLWluLXBhbmRlbWljLWludmVzdG1lbnQ=|url-status=live|archive-url=|archive-date=|access-date=2020-06-15|website=Bloomberg}}</ref>


In July 2022, Simo was appointed to succeed Mehta as [[chairperson]] once the company completed its [[initial public offering]].<ref>{{Cite news | url=https://www.wsj.com/articles/instacarts-founder-to-step-down-as-chairman-after-ipo-11658528858 | last=Jacob | first=Denny | title=Instacart's Founder to Step Down as Chairman After IPO | work=[[The Wall Street Journal]] | date=July 22, 2022 | url-access=subscription | issn=0099-9660 | access-date=August 19, 2022 | archive-date=August 19, 2022 | archive-url=https://web.archive.org/web/20220819193917/https://www.wsj.com/articles/instacarts-founder-to-step-down-as-chairman-after-ipo-11658528858 | url-status=live }}</ref>
==History==
Instacart was founded in 2012 by serial entrepreneur Apoorva Mehta, a former [[Amazon.com]] employee.<ref>{{Cite news | url=https://www.latimes.com/business/technology/la-fi-himi-apoorva-mehta-20170105-story.html | title=Apoorva Mehta had 20 failed start-ups before Instacart | last=Lien | first=Tracey | work=[[Los Angeles Times]] | date=January 5, 2017| url-access=subscription}}</ref><ref>{{cite news | url=https://blogs.wsj.com/venturecapital/2012/10/25/instacart-bags-2-3m-to-become-the-amazon-of-groceries/ | title=Instacart Bags $2.3M to Become the Amazon of Groceries |date=October 25, 2012 | work=[[The Wall Street Journal]] | url-access=subscription}}</ref><ref>{{Cite web | url=https://www.firstrepublic.com/innovators/articles-insights/apoorva-mehta | title=First Republic: Apoorva Mehta | publisher=[[First Republic Bank]]}}</ref> Apoorva was born in [[India]] and moved with his family to [[Canada]] in 2000.<ref>{{Cite web | url=https://www.thehindubusinessline.com/news/2-indians-in-forbes-list-of-us-richest-under40-entrepreneurs/article9425239.ece | title=2 Indians in Forbes list of US’ richest under-40 entrepreneurs | agency=[[Press Trust of India]] | publisher=[[Business Line]] | date=December 13, 2016}}</ref><ref>{{Cite web|last=Anderson|first=Stuart|title=Instacart Immigrant Founder Helps Americans During The Pandemic|url=https://www.forbes.com/sites/stuartanderson/2020/07/16/instacart-immigrant-founder-helps-americans-during-the-pandemic/|access-date=2020-08-25|website=Forbes|language=en}}</ref> He studied engineering at the [[University of Waterloo]] and graduated in 2008.<ref>{{Cite web | url=https://uwaterloo.ca/engineering/events/fireside-chat-apoorva-mehta | title=Fireside Chat with Instacart Founder Apoorva Mehta | publisher=[[University of Waterloo]] | date=October 19, 2016}}</ref> He was a participant in [[Y Combinator]]'s Summer 2012 batch, which eventually led to the creation of Instacart.<ref>{{Cite news | url=https://techcrunch.com/2012/08/18/how-instacart-hacked-yc/ | title=How Instacart Hacked YC | work=[[TechCrunch]] | date=August 18, 2012}}</ref><ref>{{Cite web | url=https://www.ycombinator.com/topcompanies/ | title=Top Companies | publisher=[[Y Combinator]]}}</ref> In 2013, Mehta was included on the [[Forbes 30 Under 30|''Forbes'' 30 Under 30]] list.<ref name=":0" /> Apoorva previously worked at [[BlackBerry]], [[Qualcomm]], and then [[Amazon (company)|Amazon]] as a supply chain engineer, where he developed fulfillment systems to move packages from Amazon's warehouses to customers’ homes.<ref>{{Cite news | url=https://www.forbes.com/sites/bizcarson/2017/11/08/amazon-whole-foods-deal-future-of-instacart-grocery-delivery/ | title=The Amazon-Whole Foods Deal Could Have Killed Instacart. Instead, The Startup Is Stronger Than Ever | last=Carson | first=Biz | work=[[Forbes]] | date=November 8, 2017}}</ref> Before founding Instacart, Apoorva started more than 20 companies.<ref name=":0">{{Cite web|last=Wang|first=Jennifer|title=Instacart Founder Apoorva Mehta Becomes A Billionaire After New Funding Round|url=https://www.forbes.com/sites/jenniferwang/2020/06/17/instacart-founder-apoorva-mehta-becomes-a-billionaire/|access-date=2020-08-25|website=Forbes|language=en}}</ref> He tried building an ad network for social gaming companies, and developing a social network specifically for lawyers, among other start-ups.<ref>{{Cite AV media | url=https://one.npr.org/?sharedMediaId=523003162:523047374 | title=Instacart: Apoorva Mehta | work=[[How I Built This]] | via=[[NPR]] | date=April 10, 2017}}</ref>


In September 2023, the company became [[public company|public]] through an [[initial public offering]] raising $660&nbsp;million, valuing the company at about $10&nbsp;billion.<ref>{{Cite news | last=Durbin | first=Dee-Ann | title=Instacart sets IPO price at $30 a share, valuing the company at about $10 billion | url=https://apnews.com/article/instacart-ipo-grocery-delivery-dffca5b9d7eb9744bb565635a128f333 | work=[[Associated Press]] | date=September 18, 2023 | access-date=September 19, 2023 | archive-date=September 19, 2023 | archive-url=https://web.archive.org/web/20230919002931/https://apnews.com/article/instacart-ipo-grocery-delivery-dffca5b9d7eb9744bb565635a128f333 | url-status=live }}</ref><ref>{{cite news | url=https://fortune.com/2023/09/20/nstacart-shares-sink-below-ipo-price/ | title=A day after a blockbuster debut, Instacart's shares go in reverse and briefly sink below their IPO price | work=[[Fortune (magazine)|Fortune]] | date=September 20, 2023 | access-date=September 22, 2023 | archive-date=September 21, 2023 | archive-url=https://web.archive.org/web/20230921193108/https://fortune.com/2023/09/20/nstacart-shares-sink-below-ipo-price/ | url-status=live }}</ref> Mehta left the company after it went public.<ref>{{cite news | url=https://fortune.com/2023/09/19/instacart-cofounder-net-worth/ | title=Instacart's cofounder has a net worth of $1.3 billion after IPO—and today he cut all ties with the company | work=[[Fortune (magazine)|Fortune]] | date=September 19, 2023 | access-date=September 22, 2023 | archive-date=September 22, 2023 | archive-url=https://web.archive.org/web/20230922035833/https://fortune.com/2023/09/19/instacart-cofounder-net-worth/ | url-status=live }}</ref>
Instacart originally launched in San Francisco.<ref>{{cite news | url=https://www.mercurynews.com/2014/01/24/startup-instacart-hopes-to-dominate-grocery-delivery/ | title=Startup Instacart hopes to dominate grocery delivery | first=Heather | last=Somerville | work=[[The Mercury News]] | date=January 24, 2014 | url-access=subscription}}</ref><ref>{{Cite news | url=https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/with-fresh-funding-apoorva-mehta-is-taking-the-grocery-delivery-fight-to-amazon/articleshow/62895638.cms | title=With fresh funding, Apoorva Mehta is taking the grocery delivery fight to Amazon | first1=Olivia | last1=Zaleski | first2=Ellen | last2=Huet | agency=[[Bloomberg News]] | work=[[The Economic Times]] | date=February 13, 2018}}</ref><ref>{{Cite news | url=https://www.supermarketnews.com/online-retail/instacart-looks-north-border | title=Instacart looks north of the border | first=Russell | last=Redman | work=[[Supermarket News]] | date=September 25, 2018}}</ref><ref>{{cite news | url=https://www.sfgate.com/food/article/Concierge-grocery-shopping-4340149.php | title=Concierge grocery shopping | first=Valerie | last=Demicheva | work=[[San Francisco Chronicle]] | date=March 11, 2013}}</ref>


===Service launches and grocery partnerships===
In September 2016, the company announced an expansion to its zone in [[North Chicago, Illinois]].<ref>{{Cite news | url=https://news.instacart.com/north-chicago-theres-more-of-us-to-love-820b19e0e837 | title=North Chicago, there's more of us to love! |work=Instacart | date=September 27, 2016}}</ref>
Instacart was first launched in [[San Francisco]] in 2012.<ref>{{Cite news | url=https://techcrunch.com/2012/08/01/instacart/ | title=Y Combinator-Backed Instacart Wants To Be Amazon With One-Hour Delivery | first=Rip | last=Empson | work=[[TechCrunch]] | date=August 1, 2012 | access-date=October 14, 2023 | archive-date=October 13, 2023 | archive-url=https://web.archive.org/web/20231013205103/https://techcrunch.com/2012/08/01/instacart/ | url-status=live }}</ref> In November 2013, Instacart added alcohol delivery in areas where alcohol delivery was legal.<ref>{{Cite news | url=https://techcrunch.com/2013/11/21/wine-as-a-service-company-rewinery-has-shut-down/ | title=Wine-As-A-Service Company Rewinery Has Shut Down | first=Alex | last=Wilhelm | work=[[TechCrunch]] | date=November 21, 2013 | access-date=April 4, 2023 | archive-date=April 4, 2023 | archive-url=https://web.archive.org/web/20230404032322/https://techcrunch.com/2013/11/21/wine-as-a-service-company-rewinery-has-shut-down/ | url-status=live }}</ref> The company expanded across the United States in the following years.<ref>{{Cite news | last=Gorden | first=Audrey | title=Instacart expands online grocery shopping to Oak Park, Oak Lawn and Franklin Park | url=https://www.chicagotribune.com/business/blue-sky/ct-instacart-oak-park-bsi-20170419-story.html | work=[[Chicago Tribune]] | date=April 20, 2017 | access-date=April 27, 2021 | archive-date=June 20, 2021 | archive-url=https://web.archive.org/web/20210620113030/https://www.chicagotribune.com/business/blue-sky/ct-instacart-oak-park-bsi-20170419-story.html | url-status=live }}</ref><ref>{{Cite news | url=https://www.socaltech.com/instacart_expands_in_oc_adds_99_ranch/s-0067531.html | title=Instacart Expands In OC, Adds 99 Ranch | work=SocalTech | date=October 10, 2016 | access-date=March 10, 2021 | archive-date=October 28, 2022 | archive-url=https://web.archive.org/web/20221028041041/https://www.socaltech.com/instacart_expands_in_oc_adds_99_ranch/s-0067531.html | url-status=live }}</ref><ref>{{Cite news | last=Mayerle | first=Jennifer | title=Which Grocery Delivery Service In The Twin Cities Is Best? | url=https://minnesota.cbslocal.com/2016/11/16/grocery-delivery-services/ | date=November 16, 2016 | access-date=April 27, 2021 | archive-date=April 27, 2021 | archive-url=https://web.archive.org/web/20210427234129/https://minnesota.cbslocal.com/2016/11/16/grocery-delivery-services/ | url-status=live }}</ref>


In November 2017, the company expanded to Canada, first with a partnership with [[Loblaw Companies]] in [[Toronto]] and [[Vancouver]].<ref>{{Cite news | url=https://www.wsj.com/articles/instacart-is-expanding-to-canada-in-amazon-battle-1506621123 | title=Instacart Is Expanding to Canada in Amazon Battle | last1=George-Cosh | first1=David | last2=Bensinger | first2=Greg | work=[[The Wall Street Journal]] | date=28 September 2017 | url-access=subscription | access-date=November 17, 2017 | archive-date=November 11, 2020 | archive-url=https://web.archive.org/web/20201111212805/https://www.wsj.com/articles/instacart-is-expanding-to-canada-in-amazon-battle-1506621123 | url-status=live }}</ref><ref>{{Cite news | url=https://www.thestar.com/business/2017/11/15/loblaws-launches-home-delivery-for-groceries.html | title=Walmart, Loblaws face off over home delivery of groceries | last=Kopun | first=Francine | work=[[Toronto Star]] | date=15 November 2017 | access-date=November 17, 2017 | archive-date=November 9, 2020 | archive-url=https://web.archive.org/web/20201109032117/https://www.thestar.com/business/2017/11/15/loblaws-launches-home-delivery-for-groceries.html | url-status=live }}</ref> By May 2018, Instacart was available for use in 11 Canadian markets and was planning expansions for five more markets.<ref>{{Cite news | url=https://globalnews.ca/news/4181397/loblaw-expanding-online-grocery-business/ | title=Loblaw expanding online grocery pick-up and delivery business across Canada | agency=[[The Canadian Press]] | publisher=[[Global News]] | date=2 May 2018 | access-date=May 7, 2018 | archive-date=January 12, 2021 | archive-url=https://web.archive.org/web/20210112214453/https://globalnews.ca/news/4181397/loblaw-expanding-online-grocery-business/ | url-status=live }}</ref>
In October 2016, it announced the expansion of coverage areas in [[Orange County, California]]<ref>{{Cite news | url=https://news.instacart.com/were-doubling-our-orange-county-coverage-b203567f80d | title=We’re Doubling Our Orange County Coverage! | work=Instacart | date=October 10, 2016}}</ref> and [[Minneapolis]].<ref>{{Cite news | url=https://news.instacart.com/minneapolis-were-expanding-c1addb9558ab | title=Minneapolis, We’re Expanding! | work=Instacart | date=October 4, 2016}}</ref>


In March 2019, Instacart expanded its same-day alcohol delivery service in the U.S.<ref>{{Cite news | url=https://www.supermarketnews.com/online-retail/instacart-ramps-alcohol-delivery | title=Instacart ramps up alcohol delivery | first=Russell | last=Redman | work=Supermarket News | date=March 12, 2019 | access-date=August 30, 2019 | archive-date=October 28, 2020 | archive-url=https://web.archive.org/web/20201028061056/https://www.supermarketnews.com/online-retail/instacart-ramps-alcohol-delivery | url-status=live }}</ref> Effective May 2019, [[Whole Foods Market]] ended its partnership with Instacart in the U.S. given its ties to Amazon.<ref>{{Cite news | url=https://www.bloomberg.com/news/articles/2019-10-07/no-whole-foods-no-problem-instacart-shakes-off-loss-of-grocer | last=Boyle | first=Matthew | date=October 7, 2019 | title=No Whole Foods, No Problem: Instacart Shakes Off Loss of Grocer | work=[[Bloomberg News]] | url-access=subscription | access-date=December 13, 2019 | archive-date=September 7, 2020 | archive-url=https://web.archive.org/web/20200907080926/https://www.bloomberg.com/news/articles/2019-10-07/no-whole-foods-no-problem-instacart-shakes-off-loss-of-grocer | url-status=live }}</ref><ref>{{Cite news | url=https://www.businessinsider.com/whole-foods-instacart-delivery-partnership-ends-2018-12 | title=Instacart's delivery partnership with Whole Foods is ending, killing hundreds of jobs | first=Mary | last=Hanbury | work=[[Business Insider]] | date=December 13, 2018 | access-date=April 10, 2020 | archive-date=August 1, 2020 | archive-url=https://web.archive.org/web/20200801192430/https://www.businessinsider.com/whole-foods-instacart-delivery-partnership-ends-2018-12 | url-status=live }}</ref> In February 2024, Instacart announced customers throughout Canada can now order fresh groceries and everyday essentials from Whole Foods Market on the Instacart App.<ref>{{Cite web |title=Instacart Welcomes Whole Foods Market Canada to the Instacart App |url=https://www.instacart.com/company/pressreleases/instacart-welcomes-whole-foods-market-canada-to-the-instacart-app/ |access-date=2024-08-21 |website=Instacart Corporate Blog |language=en-US}}</ref>
In November 2017, the company expanded to Canada by announcing a partnership with [[Loblaw Companies]] to begin delivery from select [[Loblaw Companies]], [[Real Canadian Superstore]], and [[T&T Supermarket]] locations in [[Toronto]] and [[Vancouver]].<ref>{{Cite news | url=https://www.wsj.com/articles/instacart-is-expanding-to-canada-in-amazon-battle-1506621123 | title=Instacart Is Expanding to Canada in Amazon Battle | last1=George-Cosh | first1=David |last2=Bensinger | first2=Greg | work=[[The Wall Street Journal]] | date=28 September 2017 | url-access=subscription}}</ref><ref>{{Cite news | url=https://www.thestar.com/business/2017/11/15/loblaws-launches-home-delivery-for-groceries.html | title=Walmart, Loblaws face off over home delivery of groceries | last=Kopun | first=Francine | work=[[Toronto Star]] | date=15 November 2017}}</ref> By the end of 2018, Instacart delivered from these stores in 16 Canadian markets.<ref>{{Cite news | url=https://globalnews.ca/news/4181397/loblaw-expanding-online-grocery-business/ | title=Loblaw expanding online grocery pick-up and delivery business across Canada | agency=[[The Canadian Press]] | publisher=[[Global News]] | date=2 May 2018}}</ref> In September 2018, Instacart added service from [[Walmart Canada]] stores, [[Staples Canada]] and [[M&M Food Market]].<ref>{{Cite news | url=https://www.ctvnews.ca/business/walmart-launches-1-hour-grocery-delivery-in-gta-with-instacart-partnership-1.4092377 | title=Walmart launches 1-hour grocery delivery in GTA with Instacart partnership | agency=[[The Canadian Press]] | publisher=[[CTV News]] | date=September 13, 2018}}</ref>


In May 2020, Instacart began a partnership with [[Rite Aid]], offering its service across 2,400 locations in 18 states.<ref>{{Cite news | url=https://www.foxbusiness.com/money/rite-aid-instacart-to-make-coronavirus-deliveries-after-new-partnership | title=Rite Aid, Instacart to make coronavirus deliveries after new partnership | last=Moore | first=Cortney | work=[[Fox Business]] | date=May 13, 2020 | access-date=May 14, 2020 | archive-date=May 21, 2020 | archive-url=https://web.archive.org/web/20200521003007/https://www.foxbusiness.com/money/rite-aid-instacart-to-make-coronavirus-deliveries-after-new-partnership | url-status=live }}</ref> In August 2020, Instacart entered its first partnership with Walmart in the U.S. to offer same-day delivery services. The partnership is a pilot program beginning in Los Angeles, San Francisco, San Diego, and Tulsa.<ref>{{Cite news | url=https://www.reuters.com/article/us-instacart-strategy-walmart-idUSKCN257290 | title=Instacart starts Walmart delivery pilot in some U.S. cities | first1=Uday | last1=Sampath | first2=Jane Lanhee | last2=Lee | work=[[Reuters]] | date=August 11, 2020 | access-date=August 17, 2020 | archive-date=August 16, 2020 | archive-url=https://web.archive.org/web/20200816231331/https://www.reuters.com/article/us-instacart-strategy-walmart-idUSKCN257290 | url-status=live }}</ref><ref>{{Cite news | url=https://www.cnn.com/2020/08/11/tech/walmart-instacart-partner-whole-foods/index.html | title=Instacart partners with Walmart to compete with Amazon | first=Sara Ashley | last=O'Brien | work=[[CNN]] | date=August 11, 2020 | access-date=August 17, 2020 | archive-date=August 11, 2020 | archive-url=https://web.archive.org/web/20200811202608/https://www.cnn.com/2020/08/11/tech/walmart-instacart-partner-whole-foods/index.html | url-status=live }}</ref> Additional partnerships in June included [[C&S Wholesale Grocers]] and [[Staples Inc.|Staples]].<ref>{{Cite news |title=Who doesn't sell groceries but delivers via Instacart? Staples! |url=https://chainstoreage.com/who-doesnt-sell-groceries-delivers-instacart-staples |work=Chain Store Age |access-date=June 15, 2020 |archive-date=June 15, 2020 |archive-url=https://web.archive.org/web/20200615133752/https://chainstoreage.com/who-doesnt-sell-groceries-delivers-instacart-staples |url-status=live }}</ref><ref>{{Cite news |title=C&S Wholesale, Instacart team up to bring online grocery to 3,000 independents |url=https://www.supermarketnews.com/online-retail/cs-wholesale-instacart-team-bring-online-grocery-3000-independents |work=Supermarket News |date=June 4, 2020 |access-date=June 15, 2020 |archive-date=June 15, 2020 |archive-url=https://web.archive.org/web/20200615133802/https://www.supermarketnews.com/online-retail/cs-wholesale-instacart-team-bring-online-grocery-3000-independents |url-status=live }}</ref>
In January 2018, the company acquired Toronto-based Unata, a white-label platform for grocers, for $65 million.<ref>{{Cite news | url=https://techcrunch.com/2018/01/16/instacart-acquires-toronto-based-unata/ | title=Instacart acquires Toronto-based Unata | first=Jordan | last=Crook | work=[[TechCrunch]] | date=January 16, 2018}}</ref><ref>{{Cite news | url=https://venturebeat.com/2018/01/16/instacart-acquires-canada-based-grocery-ecommerce-platform-unata/ | title=Instacart acquires Canada-based grocery ecommerce platform Unata | last=Sawers | first=Paul | work=[[VentureBeat]] | date=January 16, 2018}}</ref><ref>{{cite press release | url=https://www.prnewswire.com/news-releases/instacart-acquires-unata-300582354.html | title=Instacart Acquires Unata | publisher=[[PR Newswire]] | date=January 16, 2018}}</ref>


Instacart had a valuation of $39 billion as of 2021.<ref>{{Cite web |last=Shaw |first=Samantha |date=2023-12-22 |title=Instacart and Valuation Risk |url=https://equable.org/instacart-and-valuation-risk/ |access-date=2024-07-29 |website=Equable |language=en}}</ref>
In April 2018, Instacart instituted a 5% service fee on all orders.<ref>{{cite news | url=https://www.forbes.com/sites/bizcarson/2018/04/24/instacart-adds-tipping-back/ | title=Instacart Is Fixing One Of The Most Controversial Parts Of Its Grocery Delivery Service | first=Biz | last=Carson | work=[[Forbes]] | date=April 24, 2018}}</ref>


In March 2022, in partnership with [[TikTok]], [[Hearst Communications|Hearst Magazine]] and Tasty, Instacart launched Shoppable Recipes with product integrations for food creators.<ref>{{Cite news |title=Instacart debuts Shoppable Recipes with media partners |url=https://www.supermarketnews.com/online-retail/instacart-debuts-shoppable-recipes-media-partners |work=Supermarket News |date=March 17, 2022 |access-date=May 17, 2022 |archive-date=April 17, 2022 |archive-url=https://web.archive.org/web/20220417054730/https://www.supermarketnews.com/online-retail/instacart-debuts-shoppable-recipes-media-partners |url-status=live }}</ref> In the same month, Instacart introduced the Instacart Platform, a program with services for retailers. The platform launched with features for advertising, home delivery, and inventory counting.<ref>{{Cite news | url=https://www.forbes.com/sites/kirimasters/2022/03/23/instacart-just-gave-grocery-retailers-the-keys-to-the-castle/ | title=Instacart Just Gave Grocery Retailers The Keys To The Castle | first=Kiri | last=Masters | work=[[Forbes]] | date=March 23, 2022 | url-access=limited | access-date=July 16, 2022 | archive-date=June 21, 2022 | archive-url=https://web.archive.org/web/20220621065843/https://www.forbes.com/sites/kirimasters/2022/03/23/instacart-just-gave-grocery-retailers-the-keys-to-the-castle/ | url-status=live }}</ref><ref>{{Cite news | title=I kinda dig the Instacart growth plan | url=https://techcrunch.com/2022/03/24/i-kinda-dig-the-instacart-growth-plan/ | first=Alex | last=Wilhelm | work=[[TechCrunch]] | date=March 24, 2022 | access-date=October 13, 2023 | archive-date=November 21, 2023 | archive-url=https://web.archive.org/web/20231121073558/https://techcrunch.com/2022/03/24/i-kinda-dig-the-instacart-growth-plan/ | url-status=live }}</ref>
In 2018, Instacart announced national expansions with [[Kroger]], [[Aldi]], [[Sam's Club]], [[Publix]], [[Costco]], [[Sprouts Farmers Market]], [[Stater Bros.]], [[BJ's Wholesale Club]], [[HyVee]], [[The Fresh Market]], [[Harps Food Stores]], and [[Lunds & Byerlys]].<ref>{{Cite news | url=https://www.supermarketnews.com/online-retail/kroger-plans-major-expansion-instacart | title=Kroger plans major expansion with Instacart | first=Russell | last=Redman | work=[[Supermarket News]] | date=August 30, 2018}}</ref><ref>{{Cite news | url=https://www.supermarketnews.com/online-retail/walmart-canada-teams-instacart | title=Walmart Canada teams up with Instacart | first=Russell | last=Redman | work=[[Supermarket News]] | date=September 13, 2018}}</ref>


In November 2018, Instacart announced the national expansion of Instacart Pickup, a grocery click-and-collect service, whereby users pick up their pre-packaged orders at the grocery store.<ref>{{Cite news | url=https://www.supermarketnews.com/online-retail/instacart-pickup-set-go-national | title=Instacart Pickup set to go national | first=Russell | last=Redman | work=[[Supermarket News]] | date=November 7, 2018}}</ref>
In May 2022, Instacart partnered with Canadian grocers Metro, Giant Tiger, and Galleria Supermarket.<ref>{{Cite web |title=Instacart's retail partners now include all of Canada's biggest grocers |url=https://www.supermarketnews.com/grocery-trends-data/instacart-s-retail-partners-now-include-all-of-canada-s-biggest-grocers |access-date=2024-10-23 |website=www.supermarketnews.com |language=en}}</ref>


In March 2023, Instacart announced the availability of digital tools for medical providers to promote nutritious foods to patients and their families.<ref>{{Cite web |last=Stockton |first=Sommer |date=2023-03-25 |title=Instacart Launches Product Suite For Food As Medicine Programs |url=https://www.theshelbyreport.com/2023/03/25/instacart-launches-product-suite-for-food-as-medicine-programs/ |access-date=2024-06-18 |website=The Shelby Report |language=en-US |archive-date=June 18, 2024 |archive-url=https://web.archive.org/web/20240618220600/https://www.theshelbyreport.com/2023/03/25/instacart-launches-product-suite-for-food-as-medicine-programs/ |url-status=live }}</ref>
In March 2019, Instacart expanded its same-day alcohol delivery service in the U.S., making Instacart one of the largest online delivery and pickup marketplaces for alcohol in the U.S.<ref>{{Cite news | url=https://www.supermarketnews.com/online-retail/instacart-ramps-alcohol-delivery | title=Instacart ramps up alcohol delivery | first=Russell | last=Redman | work=[[Supermarket News]] | date=March 12, 2019}}</ref>


In November 2023, Instacart partnered with Peacock.<ref>{{Cite web |date=November 29, 2023 |title=Instacart partners with Peacock to offer streaming content to US subscribers |url=https://www.reuters.com/business/media-telecom/instacart-partners-with-peacock-offer-streaming-content-us-subscribers-2023-11-29/ |access-date=October 8, 2024 |website=Reuters}}</ref>
On April 11, 2019, the company expanded its services to offering an on-demand option for its workers, in order to allow workers to work more flexible schedules.<ref>{{Cite news | url=https://www.pymnts.com/news/delivery/2019/instacart-on-demand-option/ | title=Instacart Loosens Availability Requirements For Shoppers With New On-Demand Option | last=Silman | first=Jon | website=PYMNTS.com | date=April 12, 2019}}</ref>


In May 2024, Instacart partnered with [[Uber Eats]] to give Instacart customers access to food delivery from Uber Eats U.S. restaurant partners.<ref>{{Cite web |last=Olakoyenikan |first=Segun |title=Instacart Partners With Uber Eats On Restaurant Delivery |url=https://www.forbes.com/sites/segunolakoyenikan/2024/05/07/instacart-partners-with-uber-eats-on-restaurant-delivery/ |access-date=2024-07-05 |website=Forbes |language=en |archive-date=July 5, 2024 |archive-url=https://web.archive.org/web/20240705175034/https://www.forbes.com/sites/segunolakoyenikan/2024/05/07/instacart-partners-with-uber-eats-on-restaurant-delivery/ |url-status=live }}</ref>
Effective May 2019, [[Whole Foods Market]] ended its partnership with Instacart.<ref>{{Cite news | url=https://www.bloomberg.com/news/articles/2019-10-07/no-whole-foods-no-problem-instacart-shakes-off-loss-of-grocer | title=No Whole Foods, No Problem: Instacart Shakes Off Loss of Grocer | last=Boyle | first=Matthew | work=[[Bloomberg News]] | date=October 7, 2019}}</ref><ref>{{Cite news | url=https://www.businessinsider.com/whole-foods-instacart-delivery-partnership-ends-2018-12 | title=Instacart's delivery partnership with Whole Foods is ending, killing hundreds of jobs | first=Mary | last=Hanbury | work=[[Business Insider]] | date=December 13, 2018}}</ref>


In June 2024, Instacart began a partnership with New York Times Cooking.<ref>{{Cite web |title=New York Times brings commerce to its cooking app |url=https://www.inma.org/blogs/product-initiative/post.cfm/new-york-times-brings-commerce-to-it-s-cooking-app |access-date=2024-10-16 |website=International News Media Association (INMA)}}</ref>
As of December 2019, Instacart's alcohol delivery service included over 30 new partners in more than 20 states and Washington, D.C. such as Aldi, Sam's Club, BJ's Wholesale Club, Sprouts Farmers Market, and The Fresh Market.<ref>{{Cite news | url=https://www.supermarketnews.com/online-retail/costco-instacart-expand-alcohol-delivery-200-club-stores | title=Costco, Instacart expand alcohol delivery to 200 club stores | first=Russell | last=Redman | work=[[Supermarket News]] | date=December 17, 2019}}</ref>


== Operation ==
From mid-March to mid-April 2020, Instacart hired an additional 300,000 workers to meet the surge in demand for grocery deliveries during the COVID-19 pandemic.<ref>{{Cite web|url=https://www.cnn.com/2020/03/23/tech/instacart-hiring/index.html|title=Instacart plans to hire 300,000 more workers as demand surges for grocery deliveries|last=O'Brien|first=Sara|website=CNN|access-date=2020-04-13}}</ref><ref>{{Cite web|url=https://www.businessinsider.com/instacart-hiring-spree-coronavirus-working-conditions-worse-for-everyone-report-2020-5|title=Instacart's army of shoppers has exploded from 180,000 to 500,000 since the start of the pandemic — and some workers say it's making the job more difficult for everyone|last=Sonnemaker|first=Tyler|website=Business Insider|date=2020-05-08|language=en|access-date=2020-05-14}}</ref> Data from Apptopia demonstrated a 218% increase in daily downloads as distancing measures increased.<ref name="Grocery delivery apps see record downloads amid coronavirus outbreak">{{Cite news |last=Perez |first=Sarah |url= https://techcrunch.com/2020/03/16/grocery-delivery-apps-see-record-downloads-amid-coronavirus-outbreak/ |title=Grocery delivery apps see record downloads amid coronavirus outbreak |date=March 16, 2020 |website=Tech Crunch |url-status=live |archive-url=https://techcrunch.com/2020/03/16/grocery-delivery-apps-see-record-downloads-amid-coronavirus-outbreak |archive-date=March 16, 2020 |access-date=May 28, 2020}}</ref>. Instacart also introduced new services in response to the pandemic, including a contactless delivery option, safety kits and guidelines for shoppers, and new sick leave policies and pay for those affected by COVID-19.<ref>{{Cite web|url=https://www.supermarketnews.com/online-retail/instacart-distribute-health-and-safety-kits-its-shopper-community|title=Instacart to distribute health and safety kits to its shopper community|date=2020-04-02|website=Supermarket News|language=en|access-date=2020-04-15}}</ref><ref>{{Cite web|url=https://www.laweekly.com/shopping-services-are-household-heroes-during-pandemic/|title=Shopping Services Are Household Heroes During Pandemic|last=|first=|date=2020-03-23|website=LA Weekly|language=|url-status=live|archive-url=|archive-date=|access-date=2020-04-15}}</ref> As of April 18, 2020, Instacart reportedly had not provided the safety kits to a majority of its workers, who describe a complicated process to order them.<ref>{{Cite web|url=https://www.wired.com/story/instacart-delivery-workers-still-waiting-safety-kits/|title=Instacart Workers Are Still Waiting for Those Safety Supplies|date=2020-04-18|website=Wired|language=en|access-date=2020-05-14}}</ref>
The company partners with over 1,500 retailers, covering more than 85,000 grocery stores.<ref>{{Cite web |date=2024-11-13 |title=Grocery Business Solid for Instacart in Q3 |url=https://progressivegrocer.com/grocery-business-solid-instacart-q3 |access-date=2024-12-11 |website=Progressive Grocer |language=en}}</ref>


===Pricing changes===
In May 2020, Instacart began a partnership with [[Rite Aid]], offering its service across 2,400 locations in 18 states.<ref>{{Cite web|url=https://www.foxbusiness.com/money/rite-aid-instacart-to-make-coronavirus-deliveries-after-new-partnership|title=Rite Aid, Instacart to make coronavirus deliveries after new partnership|last=Moore|first=Cortney|date=2020-05-13|website=Fox Business|language=en|url-status=live|access-date=2020-05-14}}</ref>
In August 2013, Instacart began offering an annual membership service called Instacart Express.<ref>{{Cite news | url=https://www.geekwire.com/2013/instacart-adds-instacart-express-membership-fires-shot-amazon-fresh/ | title=Instacart adds $99 'express' membership, fires another shot at Amazon Fresh | first=BLAIR HANLEY | last=FRANK | work=[[GeekWire]] | date=August 7, 2013 | access-date=December 15, 2022 | archive-date=December 15, 2022 | archive-url=https://web.archive.org/web/20221215094312/https://www.geekwire.com/2013/instacart-adds-instacart-express-membership-fires-shot-amazon-fresh/ | url-status=live }}</ref> In June 2022, Instacart Express was renamed Instacart+ and new family shopping features, including sharing membership and shopping-cart collaboration with another family member for free, were added.<ref>{{Cite news | url=https://techcrunch.com/2022/06/15/instacart-launching-revamped-subscription-service-instacart/ | title=Instacart renames its subscription service to Instacart+ | first=Aisha | last=Malik | work=[[TechCrunch]] | date=June 15, 2022 | access-date=July 27, 2022 | archive-date=July 27, 2022 | archive-url=https://web.archive.org/web/20220727215825/https://techcrunch.com/2022/06/15/instacart-launching-revamped-subscription-service-instacart/ | url-status=live }}</ref>


In April 2018, Instacart changed its prices by instituting a mandatory 5% service fee on all orders. It originally offered an optional 10% service fee that went directly to Instacart that could be turned off. It also returned the gratuity option back to the checkout screen and raised the default value from 0% to 5%.<ref>{{cite news |title=Instacart Is Fixing One Of The Most Controversial Parts Of Its Grocery Delivery Service |url=https://www.forbes.com/sites/bizcarson/2018/04/24/instacart-adds-tipping-back/ |last=Carson |first=Biz |date=April 24, 2018 |work=[[Forbes]] |url-access=limited |access-date=April 25, 2018 |archive-date=November 12, 2020 |archive-url=https://web.archive.org/web/20201112013809/https://www.forbes.com/sites/bizcarson/2018/04/24/instacart-adds-tipping-back/ |url-status=live }}</ref>
In August 2020, Instacart entered its first partnership with Walmart in the U.S. to offer same-day delivery services. The partnership is a pilot program beginning in Los Angeles, San Francisco, San Diego, and Tulsa.<ref>{{Cite news|date=2020-08-11|title=Instacart starts Walmart delivery pilot in some U.S. cities|language=en|work=Reuters|url=https://www.reuters.com/article/us-instacart-strategy-walmart-idUSKCN257290|access-date=2020-08-17}}</ref><ref>{{Cite web|date=|title=Instacart partners with Walmart to compete with Amazon|url=https://www.cnn.com/2020/08/11/tech/walmart-instacart-partner-whole-foods/index.html|url-status=live|archive-url=|archive-date=|access-date=2020-08-17|website=CNN}}</ref>


===Worker classification issues===
==Controversies==
In June 2015, Instacart allowed some shoppers to choose to be [[Part-time contract|part-time employees]], starting with [[Chicago]] and [[Boston]]<ref>{{cite news |url=https://money.cnn.com/2015/06/22/technology/instacart-employee-option/ |title=The Uber effect: Instacart shifts away from contract workers |last=O'Brien |first=Sarah Ashley |work=[[CNN]] |date=June 22, 2015 |access-date=October 13, 2023 |archive-date=June 10, 2023 |archive-url=https://web.archive.org/web/20230610145458/https://money.cnn.com/2015/06/22/technology/instacart-employee-option/ |url-status=live }}</ref><ref>{{Cite magazine |url=https://www.wired.com/2015/06/instacart-shoppers-can-now-choose-real-employees/ |title=Instacart Shoppers Can Now Choose to Be Real Employees |magazine=[[Wired (magazine)|Wired]] |access-date=September 9, 2020 |archive-date=June 23, 2015 |archive-url=https://web.archive.org/web/20150623050515/https://www.wired.com/2015/06/instacart-shoppers-can-now-choose-real-employees/ |url-status=live }}</ref> and extending its offer to shoppers in [[Atlanta]], [[Miami]], and [[Washington, D.C.]] the following month.<ref>{{Cite news | url=https://www.miamiherald.com/news/business/article27111022.html | title=Instacart offers its Miami 'Personal Shoppers' the option to become employees | work=[[Miami Herald]] | access-date=September 9, 2020 | archive-date=August 15, 2015 | archive-url=https://web.archive.org/web/20150815060537/https://www.miamiherald.com/news/business/article27111022.html | url-status=live }}</ref>
In March 2017, Instacart agreed to pay $4.6 million to settle a class action settlement stemming from the alleged misclassification of its personal shoppers as independent contractors. The suit alleged 18 violations, including improper tip pooling and failure to reimburse workers for business expenses.<ref>{{cite news | url=https://www.recode.net/2017/3/23/14804094/instacart-settlement-class-action-lawsuit-workers | title=Instacart will pay $4.6 million to settle a class action lawsuit with its workers | first=Jason | last=Del Rey | work=[[Recode]] | date=March 23, 2017}}</ref>


In March 2017, Instacart agreed to pay $4.6 million to settle a class action settlement stemming from the alleged misclassification of its personal shoppers as independent contractors. The suit, filed in March 2015, alleged 18 violations, including improper tip pooling and failure to reimburse workers for business expenses.<ref>{{Cite magazine | url=https://time.com/3748438/instacart-lawsuit/ | title=Lawsuit Claims Instacart 'Personal Shoppers' Should Be Classified as Employees | first=KATY | last=STEINMETZ | magazine=[[TIME]] | date=March 18, 2015 | access-date=September 9, 2020 | archive-date=March 19, 2015 | archive-url=https://web.archive.org/web/20150319113650/https://time.com/3748438/instacart-lawsuit/ | url-status=live }}</ref><ref>{{cite news|last=Del Rey|first=Jason|date=March 23, 2017|title=Instacart will pay $4.6 million to settle a class action lawsuit with its workers|work=[[Recode]]|url=https://www.recode.net/2017/3/23/14804094/instacart-settlement-class-action-lawsuit-workers|access-date=November 9, 2017|archive-date=April 30, 2019|archive-url=https://web.archive.org/web/20190430092238/https://www.recode.net/2017/3/23/14804094/instacart-settlement-class-action-lawsuit-workers|url-status=live}}</ref>
In November 2016, the company changed its policy and removed the option to leave a [[gratuity]] in exchange for a service fee that would be used to pay workers instead. Backlash against the policy due to lower profits for at least some shoppers and with customers forced the company to reinstate the option only weeks later with modifications that placed the tip under the service fee section on a separate page.<ref>{{cite news | url=https://www.recode.net/2017/2/20/14503128/instacart-service-fee-tips-controversy | title=Instacart is playing games with its workers’ pay — and will eventually suffer for it | first=Jason | last=Del Rey | work=[[Recode]] | date= February 20, 2017}}</ref><ref>[https://techcrunch.com/2016/10/14/instacart-reverses-course-re-introducing-tips/ Instacart reverses course, re-introducing tips for shoppers] [[TechCrunch]]</ref>


===Worker relations and pay issues===
In November 2017, some Instacart workers participated in a [[strike action]], alleging wages as low as $1 an hour. Instacart claimed that the strike had no impact on its operations.<ref>{{cite web |url=https://www.fooddive.com/news/grocery--instacart-strike-earlier-this-week-had-no-impact-on-operations/511521/|title=Instacart: Strike last week had no impact on operations|website=Food Dive}}</ref>
In November 2016, the company removed the option to leave a [[gratuity]] in exchange for a service fee that would be used to pay workers instead. The backlash against the policy from customers and some shoppers forced the company to reinstate the option only weeks later with modifications that placed the tip under the service fee section on a separate page.<ref>{{cite news |last=Del Rey |first=Jason |date=February 20, 2017 |title=Instacart is playing games with its workers' pay — and will eventually suffer for it |work=[[Recode]] |url=https://www.recode.net/2017/2/20/14503128/instacart-service-fee-tips-controversy |access-date=November 9, 2017 |archive-date=April 27, 2019 |archive-url=https://web.archive.org/web/20190427105511/https://www.recode.net/2017/2/20/14503128/instacart-service-fee-tips-controversy |url-status=live }}</ref><ref>{{Cite news | url=https://techcrunch.com/2016/10/14/instacart-reverses-course-re-introducing-tips/ | title=Instacart reverses course, re-introducing tips for shoppers | first=Matthew | last=Lynley | work=[[TechCrunch]] | date=October 14, 2016 | access-date=July 28, 2020 | archive-date=October 15, 2016 | archive-url=https://web.archive.org/web/20161015002014/https://techcrunch.com/2016/10/14/instacart-reverses-course-re-introducing-tips/ | url-status=live }}</ref>


In November 2017, some Instacart workers participated in a [[strike action]], alleging wages as low as $1 an hour. Instacart claimed that the strike had no impact on its operations.<ref>{{cite news | title=Instacart: Strike last week had no impact on operations | url=https://www.fooddive.com/news/grocery--instacart-strike-earlier-this-week-had-no-impact-on-operations/511521/ | work=Food Dive | date=November 22, 2017 | access-date=November 29, 2017 | archive-date=November 22, 2017 | archive-url=https://web.archive.org/web/20171122180725/https://www.fooddive.com/news/grocery--instacart-strike-earlier-this-week-had-no-impact-on-operations/511521/ | url-status=live }}</ref>
In February 2018, Instacart withheld tips given by customers to shoppers, blaming a [[software bug]]. In addition, customers were often charged for service fees that were supposed to be waived.<ref>{{cite news | url=https://www.recode.net/2018/2/23/17046120/instacart-tips-bug-waive-service-fee | title=Instacart says it mistakenly withheld tips from some of its workers | first=Jason | last=Del Rey | work=[[Recode]] | date=23 February 2018}}</ref>


In February 2018, Instacart mistakenly withheld tips given by customers to shoppers, blaming a [[software bug]]. In addition, customers were often charged for service fees that were supposed to be waived.<ref>{{cite news |url=https://www.recode.net/2018/2/23/17046120/instacart-tips-bug-waive-service-fee |last=Del Rey |first=Jason |date=February 23, 2018 |title=Instacart says it mistakenly withheld tips from some of its workers |work=[[Recode]] |access-date=August 15, 2018 |archive-date=April 30, 2019 |archive-url=https://web.archive.org/web/20190430092201/https://www.recode.net/2018/2/23/17046120/instacart-tips-bug-waive-service-fee |url-status=live }}</ref>
In November and December 2018, Instacart changed its pay system for its shoppers; shoppers claimed this pay system resulted in substantially lower pay and boycotted. Instacart customers complained on [[social media]] that their orders were being delayed.<ref>{{cite news | url=https://www.businessinsider.com/instacart-shoppers-blame-delays-on-lower-pay-2018-12 | title=Instacart shoppers say that customers' orders are likely delayed because of frustration with the company's new payment system | first=Mary | last=Hanbury | work=[[Business Insider]] | date=December 4, 2018}}</ref><ref>{{cite news | url=https://www.businessinsider.com/instacart-shoppers-threaten-boycott-claim-lower-pay-2018-12 | title=Instacart workers are threatening to boycott the company over a payment policy change that they say has cut their wages | first=Mary | last=Hanbury | work=[[Business Insider]] | date=December 4, 2018}}</ref><ref>{{cite news | url=https://www.chicagotribune.com/business/ct-biz-instacart-shopper-complaints-20181206-story.html | title='We're being mistreated': Instacart shoppers complain of pay cuts as company shifts to new model | first=Alexia | last=Elejalde-Ruiz | work=[[Chicago Tribune]] | date=December 6, 2018| url-access=subscription}}</ref>


In November and December 2018, Instacart again changed its pay system for its personal shoppers; shoppers claimed this pay system resulted in substantially lower pay and boycotted. Instacart customers complained on [[social media]] that their orders were being delayed.<ref>{{cite news |last=Hanbury |first=Mary |date=December 4, 2018 |title=Instacart shoppers say that customers' orders are likely delayed because of frustration with the company's new payment system |work=[[Business Insider]] |url=https://www.businessinsider.com/instacart-shoppers-blame-delays-on-lower-pay-2018-12 |access-date=December 25, 2018 |archive-date=August 1, 2020 |archive-url=https://web.archive.org/web/20200801215924/https://www.businessinsider.com/instacart-shoppers-blame-delays-on-lower-pay-2018-12 |url-status=live }}</ref><ref>{{cite news |last=Hanbury |first=Mary |date=December 4, 2018 |title=Instacart workers are threatening to boycott the company over a payment policy change that they say has cut their wages |work=[[Business Insider]] |url=https://www.businessinsider.com/instacart-shoppers-threaten-boycott-claim-lower-pay-2018-12 |access-date=December 25, 2018 |archive-date=November 6, 2020 |archive-url=https://web.archive.org/web/20201106013931/https://www.businessinsider.com/instacart-shoppers-threaten-boycott-claim-lower-pay-2018-12 |url-status=live }}</ref><ref>{{cite news|last=Elejalde-Ruiz|first=Alexia|date=December 6, 2018|title='We're being mistreated': Instacart shoppers complain of pay cuts as company shifts to new model|work=[[Chicago Tribune]]|url=https://www.chicagotribune.com/business/ct-biz-instacart-shopper-complaints-20181206-story.html|url-access=subscription|access-date=December 25, 2018|archive-date=November 8, 2020|archive-url=https://web.archive.org/web/20201108095509/https://www.chicagotribune.com/business/ct-biz-instacart-shopper-complaints-20181206-story.html|url-status=live}}</ref>
In February 2019, after an online organizing campaign in which shoppers posted examples of payments as low as $0.80 per delivery attracted media and customer attention, the company announced that it would revise its pay system and give back pay to some workers.<ref>{{cite news | url=https://www.theverge.com/2019/2/6/18214335/instacart-reverse-controversial-pay-policy-tip-stealing | title=Instacart revises controversial pay policy after accusations of tip stealing | first=Andrew J. | last=Hawkins | work=[[The Verge ]] | date=February 6, 2019}}</ref><ref>{{Cite news | url=https://www.businessinsider.com/instacart-reverses-tip-payment-policy-2019-2 | title=Instacart is reversing a controversial payment policy that workers say drastically cut their wages | first=Mary | last=Hanbury | work=[[Business Insider]] | date=February 6, 2019}}</ref> Under the revised pay system, tips were no longer factored into the minimum base wages, which were newly set at $7–10 for a full-service shopping order (based on delivery market) and $5 for delivery only.<ref>{{Cite news | url=https://www.fastcompany.com/90309043/instacart-drivers-say-this-data-proves-theyre-still-being-underpaid | title=Drive for Instacart and you could make $29.05 for an hour’s work—or $2.74 | first=Sean | last=Captain | work=[[Fast Company]] | date=February 22, 2019}}</ref><ref>{{Cite news | url=https://www.tampabay.com/business/working-for-apps-like-instacart-is-world-of-uncertainity-for-its-delivery-drivers-20190228/ | title=Working for apps like Instacart is 'world of {{sic|uncertainity|nolink=y}}' for its delivery drivers | first=Sara | last=DiNatale | work=[[Tampa Bay Times]] | date=February 28, 2019}}</ref>


In February 2019, an online organizing campaign, including shoppers, provided examples of payments to shoppers as low as $0.80 per delivery. The company announced that it would revise its pay system and give back pay to some workers.<ref>{{cite news|last=Hawkins|first=Andrew J.|date=February 6, 2019|title=Instacart revises controversial pay policy after accusations of tip stealing|work=[[The Verge]]|url=https://www.theverge.com/2019/2/6/18214335/instacart-reverse-controversial-pay-policy-tip-stealing|access-date=April 10, 2020|archive-date=November 22, 2020|archive-url=https://web.archive.org/web/20201122170526/https://www.theverge.com/2019/2/6/18214335/instacart-reverse-controversial-pay-policy-tip-stealing|url-status=live}}</ref><ref>{{Cite news|last=Hanbury|first=Mary|date=February 6, 2019|title=Instacart is reversing a controversial payment policy that workers say drastically cut their wages|work=[[Business Insider]]|url=https://www.businessinsider.com/instacart-reverses-tip-payment-policy-2019-2|access-date=February 9, 2019|archive-date=August 1, 2020|archive-url=https://web.archive.org/web/20200801213513/https://www.businessinsider.com/instacart-reverses-tip-payment-policy-2019-2|url-status=live}}</ref> Under the revised pay system, tips were no longer factored into the minimum base wages, which were newly set at $7–10 for a full-service shopping order (based on delivery market) and $5 for delivery only.<ref>{{Cite news |last=Captain |first=Sean |date=February 22, 2019 |title=Drive for Instacart and you could make $29.05 for an hour's work—or $2.74 |work=[[Fast Company]] |url=https://www.fastcompany.com/90309043/instacart-drivers-say-this-data-proves-theyre-still-being-underpaid |access-date=February 27, 2019 |archive-date=November 7, 2020 |archive-url=https://web.archive.org/web/20201107233152/https://www.fastcompany.com/90309043/instacart-drivers-say-this-data-proves-theyre-still-being-underpaid |url-status=live }}</ref><ref>{{Cite news |last=DiNatale |first=Sara |date=February 28, 2019 |title=Working for apps like Instacart is 'world of {{sic|uncertainity|nolink=y}}' for its delivery drivers |work=[[Tampa Bay Times]] |url=https://www.tampabay.com/business/working-for-apps-like-instacart-is-world-of-uncertainity-for-its-delivery-drivers-20190228/ |access-date=March 1, 2019 |archive-date=November 7, 2020 |archive-url=https://web.archive.org/web/20201107230815/https://www.tampabay.com/business/working-for-apps-like-instacart-is-world-of-uncertainity-for-its-delivery-drivers-20190228/ |url-status=live }}</ref>
In February 2020, Instacart employees in [[Skokie, Illinois]] voted to unionize. Instacart said it "will honor" the vote, pending certification of the results. In the lead-up to the election, high-level Instacart managers distributed anti-union literature at a Skokie grocery store where some of the unionizing workers pick up groceries for delivery.<ref>{{Cite news | url=https://www.vice.com/en_us/article/akw3z8/leaked-memos-show-instacart-is-running-a-union-busting-campaign | title=Leaked Memos Show Instacart is Running a Union-Busting Campaign | last=Gurley | first=Lauren Kaori | work=[[Vice (magazine)|Vice]] | date=January 27, 2020}}</ref> About 12,000 of Instacart's 142,000 workers are employees with the option of unionizing.<ref>{{Cite news | url=https://www.vice.com/en_ca/article/qjdvgm/instacart-workers-win-historic-union-election | title=Instacart Workers Win Historic Union Election | last=Gurley | first=Lauren Kaori | work=[[Vice (magazine)|Vice]] | date=February 3, 2020}}</ref>


On April 11, 2019, the company expanded its services to offering an on-demand option for its workers, in order to allow workers to work more flexible schedules.<ref>{{Cite news | url=https://www.pymnts.com/news/delivery/2019/instacart-on-demand-option/ | title=Instacart Loosens Availability Requirements For Shoppers With New On-Demand Option | last=Silman | first=Jon | work=PYMNTS.com | date=April 12, 2019 | access-date=May 8, 2019 | archive-date=November 8, 2020 | archive-url=https://web.archive.org/web/20201108003102/https://www.pymnts.com/news/delivery/2019/instacart-on-demand-option/ | url-status=live }}</ref>
In March 2020, Instacart workers threatened to strike on March 27, 2020 related to lack of [[COVID-19]] safety measures. A group called the Gig Workers Collective called for a nationwide walk-out to be held on Monday, March 30. They've been asking Instacart to provide workers with hazard pay and protective gear, among other demands.<ref>{{Cite news | url=https://abcnews.go.com/Business/wireStory/instacart-workers-seek-strike-jobs-busier-riskier-69866653 | title=Some Instacart, Amazon workers strike as jobs get riskier | first1=ALEXANDRA | last1=OLSON | first2=MAE | last2=ANDERSON | agency=[[Associated Press]] | publisher=[[ABC News]] | date=March 30, 2020}}</ref>


In February 2020, Instacart employees in [[Skokie, Illinois]] voted to form a [[trade union]]. Instacart said it "will honor" the vote, pending certification of the results. In the lead-up to the election, high-level Instacart managers distributed anti-union literature at a Skokie grocery store where some of the unionizing workers picked up groceries for delivery.<ref>{{Cite news |last=Gurley |first=Lauren Kaori |date=January 27, 2020 |title=Leaked Memos Show Instacart is Running a Union-Busting Campaign |work=[[Vice (magazine)|Vice]] |url=https://www.vice.com/en_us/article/akw3z8/leaked-memos-show-instacart-is-running-a-union-busting-campaign |access-date=February 6, 2020 |archive-date=September 24, 2020 |archive-url=https://web.archive.org/web/20200924161205/https://www.vice.com/en_us/article/akw3z8/leaked-memos-show-instacart-is-running-a-union-busting-campaign |url-status=live }}</ref> At the time, about 12,000 of Instacart's 142,000 workers were employees with the option of unionizing.<ref>{{Cite news |last=Gurley |first=Lauren Kaori |date=February 3, 2020 |title=Instacart Workers Win Historic Union Election |work=[[Vice (magazine)|Vice]] |url=https://www.vice.com/en_ca/article/qjdvgm/instacart-workers-win-historic-union-election |access-date=February 6, 2020 |archive-date=September 28, 2020 |archive-url=https://web.archive.org/web/20200928163544/https://www.vice.com/en_ca/article/qjdvgm/instacart-workers-win-historic-union-election |url-status=live }}</ref>
==Funding==
Instacart has raised six rounds of funding from notable investors including [[Andreessen Horowitz]], [[Sequoia Capital]], [[Kleiner Perkins]], [[Comcast Ventures]], [[Thrive Capital]], [[Coatue Management]], D1 Capital Partners, Tiger Global and [[Valiant Capital]].<ref name="newfunding">{{Cite news|last=Kumar|first=Uday Sampath|date=November 14, 2018|title=Instacart wins $271 million in new funding in November: source|work=[[Reuters]]|url=https://www.reuters.com/article/us-instacart-funding-idUSKCN1NJ2TY}}</ref>


From mid-March to mid-April 2020, during the [[COVID-19 pandemic]], as a result of a surge in usage of the [[mobile app]], Instacart hired an additional 300,000 workers to meet the surge in demand for grocery deliveries.<ref>{{Cite news |url=https://www.cnn.com/2020/03/23/tech/instacart-hiring/index.html |title=Instacart plans to hire 300,000 more workers as demand surges for grocery deliveries |last=O'Brien |first=Sara |work=[[CNN]] |date=March 23, 2020 |access-date=April 13, 2020 |archive-date=March 23, 2020 |archive-url=https://web.archive.org/web/20200323200556/https://www.cnn.com/2020/03/23/tech/instacart-hiring/index.html |url-status=live }}</ref><ref>{{Cite news |title=Instacart's army of shoppers has exploded from 180,000 to 500,000 since the start of the pandemic — and some workers say it's making the job more difficult for everyone |last=Sonnemaker |first=Tyler |work=[[Business Insider]] |url=https://www.businessinsider.com/instacart-hiring-spree-coronavirus-working-conditions-worse-for-everyone-report-2020-5 |date=May 8, 2020 |access-date=May 14, 2020 |archive-date=May 8, 2020 |archive-url=https://web.archive.org/web/20200508194920/https://www.businessinsider.com/instacart-hiring-spree-coronavirus-working-conditions-worse-for-everyone-report-2020-5 |url-status=live }}</ref><ref>{{Cite news |last=Perez |first=Sarah |url=https://techcrunch.com/2020/03/16/grocery-delivery-apps-see-record-downloads-amid-coronavirus-outbreak/ |title=Grocery delivery apps see record downloads amid coronavirus outbreak |date=March 16, 2020 |work=[[TechCrunch]] | archive-url=https://web.archive.org/web/20200527131229/https://techcrunch.com/2020/03/16/grocery-delivery-apps-see-record-downloads-amid-coronavirus-outbreak/ |archive-date=May 27, 2020 |url-status=live}}</ref>
The company had a $2-billion [[Valuation (finance)|valuation]] by investors {{As of|2015|5|lc=yes}}.<ref name=bet/>


Instacart workers threatened to strike on March 27, 2020 due to a lack of COVID-19 safety measures.<ref>{{Cite news |last=Pietsch |first=Bryan |title=Instacart workers are planning to strike until the company gives them hazard pay and safety gear |url=https://www.businessinsider.com/coronavirus-instacart-workers-plan-strike-demand-hazard-pay-safety-gear-2020-3 |work=[[Business Insider]] |date=March 27, 2020 |access-date=June 21, 2023 |archive-date=June 21, 2023 |archive-url=https://web.archive.org/web/20230621210548/https://www.businessinsider.com/coronavirus-instacart-workers-plan-strike-demand-hazard-pay-safety-gear-2020-3 |url-status=live }}</ref> Workers demanded [[hazard pay]] and [[personal protective equipment]].<ref>{{Cite news |last1=Olson |first1=Alexandra |last2=Anderson |first2=Mae |date=March 30, 2020 |title=Some Instacart, Amazon workers strike as jobs get riskier |publisher=[[ABC News (United States)|ABC News]] |agency=[[Associated Press]] |url=https://abcnews.go.com/Business/wireStory/instacart-workers-seek-strike-jobs-busier-riskier-69866653 |access-date=April 10, 2020 |archive-date=December 9, 2020 |archive-url=https://web.archive.org/web/20201209014204/https://abcnews.go.com/Business/wireStory/instacart-workers-seek-strike-jobs-busier-riskier-69866653 |url-status=live }}</ref> In early April 2020, Instacart began providing safety kits to workers.<ref>{{Cite magazine | url=https://www.wired.com/story/instacart-delivery-workers-still-waiting-safety-kits/ | title=Instacart Workers Are Still Waiting for Those Safety Supplies | first=ARIELLE | last=PARDES | magazine=[[Wired (magazine)|Wired]] | date=April 18, 2020 | access-date=May 14, 2020 | archive-date=April 18, 2020 | archive-url=https://web.archive.org/web/20200418191355/https://www.wired.com/story/instacart-delivery-workers-still-waiting-safety-kits/ | url-status=live }}</ref> In May, workers reported being denied sick leave despite quarantining under the advice of a doctor. Instacart required that workers either get a positive COVID-19 test or be under a mandatory quarantine by a public health agency or other government agency.<ref>{{Cite news |url=https://www.cnet.com/tech/mobile/an-artificially-high-bar-instacarts-covid-sick-leave-is-hard-to-get/ |title='An artificially high bar': Instacart's COVID-19 sick leave is hard to get | first=Dara | last=Kerr | work=[[CNET]] | date=May 20, 2020}}</ref><ref>{{Cite news | url=https://www.theverge.com/21267669/instacart-shoppers-sick-extended-pay-quarantine-leave-coronavirus | title=The human cost of Instacart's grocery delivery | first=Russell | last=Brandom | work=[[The Verge]] | date=May 26, 2020 | access-date=January 14, 2022 | archive-date=January 14, 2022 | archive-url=https://web.archive.org/web/20220114160319/https://www.theverge.com/21267669/instacart-shoppers-sick-extended-pay-quarantine-leave-coronavirus | url-status=live }}</ref> By June, Instacart changed its sick leave rules in an agreement reached by it and [[Attorney General for the District of Columbia|D.C. Attorney General]], [[Karl Racine]]. Under the agreement, Instacart provided paid leave to workers who were clinically diagnosed with COVID-19 by a doctor or other medical professional along with those who had a household member contract COVID-19. The agreement also provided access for workers to telemedicine services.<ref>{{Cite news | url=https://www.theverge.com/2020/6/2/21278359/instacart-sick-pay-gig-workers-dc-ag-telemedicine-childcare | title=Instacart will expand sick pay to more gig workers | first=Russell | last=Brandom | work=[[The Verge]] | date=June 2, 2020 | access-date=January 14, 2022 | archive-date=January 14, 2022 | archive-url=https://web.archive.org/web/20220114160319/https://www.theverge.com/2020/6/2/21278359/instacart-sick-pay-gig-workers-dc-ag-telemedicine-childcare | url-status=live }}</ref><ref>{{Cite news |url=https://www.forbes.com/sites/chloesorvino/2021/01/27/instacart-survived-covid-chaos---but-can-it-keep-delivering-after-the-pandemic/ |title=Instacart Survived Covid Chaos — But Can It Keep Delivering After The Pandemic? |work=[[Forbes]] |date=January 27, 2021 |url-access=limited |access-date=May 30, 2021 |archive-date=May 28, 2021 |archive-url=https://web.archive.org/web/20210528121650/https://www.forbes.com/sites/chloesorvino/2021/01/27/instacart-survived-covid-chaos---but-can-it-keep-delivering-after-the-pandemic/ |url-status=live }}</ref>
In March 2017, Instacart raised $400 million in funding at a valuation of $3.4 billion.<ref>{{Cite news| url=https://www.axios.com/instacart-raising-massive-new-funding-round-2292601805.html | title=Instacart is raising a new funding round | last=Primack | first=Dan | work=[[Axios (website)|Axios]] |date=March 1, 2017}}</ref><ref>{{Cite news | url=https://nypost.com/2017/03/08/instacart-now-valued-at-3-4b-after-major-investment/ | title=Instacart now valued at $3.4B after major investment | last=Fickenscher | first=Lisa | work=[[New York Post]] | date=March 9, 2017}}</ref>


In January 2021, Instacart announced a $25 stipend to provide financial assistance to company shoppers who choose to get the [[COVID-19 vaccine]].<ref>{{Cite news |title=Instacart offers $25 stipend for shoppers who take the COVID-19 vaccine |url=https://www.cnet.com/health/instacart-offers-25-stipend-for-shoppers-who-take-the-covid-19-vaccine/ |first=Ryan |last=Crist |work=[[CNET]] |date=January 14, 2021 |access-date=January 21, 2021 |archive-date=February 18, 2021 |archive-url=https://web.archive.org/web/20210218151146/https://www.cnet.com/health/instacart-offers-25-stipend-for-shoppers-who-take-the-covid-19-vaccine/ |url-status=live }}</ref><ref>{{Cite news | title=Instacart to provide $25 vaccine stipend for gig-work shoppers | url=https://www.sfchronicle.com/business/article/Instacart-to-provide-25-vaccine-stipend-for-15871610.php | first=Chase | last=DiFeliciantonio | work=[[San Francisco Chronicle]] | date=January 15, 2021 | url-access=limited | access-date=January 21, 2021 | archive-date=March 1, 2021 | archive-url=https://web.archive.org/web/20210301112110/https://www.sfchronicle.com/business/article/Instacart-to-provide-25-vaccine-stipend-for-15871610.php | url-status=live }}</ref>
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.<ref>{{Cite news | url=https://techcrunch.com/2018/02/12/instacart-has-raised-another-200m-at-a-4-2b-valuation/ | title=Instacart has raised another $200M at a $4.2B valuation | last=Lynley | first=Matthew | work=[[TechCrunch]] | date=February 12, 2018}}</ref> In October 2018, Instacart raised $600 million in a funding round led by hedge fund D1 Capital Partners; the round valued the company at $7.6 billion.<ref>{{cite press release | url=https://www.prnewswire.com/news-releases/instacart-announces-600-million-in-new-funding-led-by-d1-capital-partners-300731507.html | title=Instacart Announces $600 Million in New Funding Led by D1 Capital Partners | publisher=[[PR Newswire]] | date=October 16, 2018}}</ref>


In January 2021, the company announced plans to lay off nearly 2,000 employees, including all of its employees who had voted to unionize. Instacart said that the layoffs were due to stores increasingly using Instacart to have consumers place orders, but have their own employees fulfill the order instead of Instacart's workforce, reducing reliance on Instacart's in-store shoppers.<ref>{{Cite news |url=https://www.vice.com/en/article/7k9deg/instacart-says-it-will-lay-off-all-of-its-unionized-workers |title=Instacart will lay off all of its unionized workers |first=Lauren |last=Kaori Gurley |work=[[Vice Media]] |date=January 21, 2021 |access-date=January 21, 2021 |archive-date=January 21, 2021 |archive-url=https://web.archive.org/web/20210121184606/https://www.vice.com/en/article/7k9deg/instacart-says-it-will-lay-off-all-of-its-unionized-workers |url-status=live }}</ref><ref>{{Cite news |url=https://www.cnn.com/2021/01/21/tech/instacart-marianos-kroger/index.html |title=Instacart is cutting more than 1,800 jobs, including its only unionized workers |last=O'Brien |first=Ashley |work=[[CNN]] |date=January 21, 2021 |access-date=January 22, 2021 |archive-date=January 22, 2021 |archive-url=https://web.archive.org/web/20210122132214/https://www.cnn.com/2021/01/21/tech/instacart-marianos-kroger/index.html |url-status=live }}</ref><ref>{{Cite news | title=Instacart Expands Curbside Pickup Options for Retailers | url=https://thespoon.tech/instacart-expands-curbside-pickup-options-for-retailers/ | first=Chris | last=Albrecht | work=The Spoon | date=January 22, 2021 | access-date=February 1, 2021 | archive-date=January 30, 2021 | archive-url=https://web.archive.org/web/20210130101807/https://thespoon.tech/instacart-expands-curbside-pickup-options-for-retailers/ | url-status=live }}</ref>
In November 2018, Instacart raised an additional $271 million from investors including Tiger Global Management, bringing its latest round of fund raising to $871 million and valuation to $7.87 billion.<ref name=newfunding/>


===Acquisitions===
In June 2020, Instacart raised $225 million in a financing round led by DST Global and [[General Catalyst]].<ref>{{Cite web |last=Hall |first=Christine |date=2020-06-11 |title=Instacart Pushes Its Way To A $13.7B Valuation With New $225M Funding Round |url=https://news.crunchbase.com/news/instacart-pushes-its-way-to-a-13-7b-valuation-with-new-225m-funding-round/ |access-date=2020-06-17 |website=Crunchbase News |language=en-US}}</ref>
In January 2018, the company acquired Toronto-based Unata, a white-label platform for grocers, for $65 million.<ref>{{Cite news |last=Crook |first=Jordan |date=January 16, 2018 |title=Instacart acquires Toronto-based Unata |work=[[TechCrunch]] |url=https://techcrunch.com/2018/01/16/instacart-acquires-toronto-based-unata/ |access-date=April 10, 2020 |archive-date=October 28, 2020 |archive-url=https://web.archive.org/web/20201028010422/https://techcrunch.com/2018/01/16/instacart-acquires-toronto-based-unata/ |url-status=live }}</ref><ref>{{Cite news |last=Sawers |first=Paul |date=January 16, 2018 |title=Instacart acquires Canada-based grocery ecommerce platform Unata |work=[[VentureBeat]] |url=https://venturebeat.com/2018/01/16/instacart-acquires-canada-based-grocery-ecommerce-platform-unata/ |access-date=January 16, 2018 |archive-date=August 3, 2020 |archive-url=https://web.archive.org/web/20200803124436/https://venturebeat.com/2018/01/16/instacart-acquires-canada-based-grocery-ecommerce-platform-unata/ |url-status=live }}</ref><ref>{{cite press release |url=https://www.prnewswire.com/news-releases/instacart-acquires-unata-300582354.html |title=Instacart Acquires Unata |publisher=[[PR Newswire]] |date=January 16, 2018 |access-date=April 10, 2020 |archive-date=April 10, 2020 |archive-url=https://web.archive.org/web/20200410201210/https://www.prnewswire.com/news-releases/instacart-acquires-unata-300582354.html |url-status=live }}</ref>

In October 2021, Instacart acquired smart cart and checkout company [[Caper AI]] for $350 million.<ref>{{Cite news | url=https://venturebeat.com/business/instacart-acquires-smart-checkout-startup-caper-ai-for-350m/ | title=Instacart acquires smart checkout startup Caper AI for $350M | last=Wiggers | first=Kyle | work=[[VentureBeat]] | date=October 19, 2021 | access-date=August 9, 2023 | archive-date=August 10, 2023 | archive-url=https://web.archive.org/web/20230810230125/https://venturebeat.com/business/instacart-acquires-smart-checkout-startup-caper-ai-for-350m/ | url-status=live }}</ref>

In September 2022, Instacart announced the acquisition of Eversight, an [[artificial intelligence]] pricing platform for brands and retailers.<ref>{{Cite news |title=Instacart acquiring AI-powered pricing, promotions platform |url=https://techcrunch.com/2022/09/01/instacart-is-acquiring-ai-powered-pricing-and-promotions-platform-eversight/ |first=Aisha |last=Malik |work=[[TechCrunch]] |date=September 1, 2022 |access-date=October 13, 2023 |archive-date=November 21, 2023 |archive-url=https://web.archive.org/web/20231121073558/https://techcrunch.com/2022/09/01/instacart-is-acquiring-ai-powered-pricing-and-promotions-platform-eversight/ |url-status=live }}</ref><ref>{{Cite news |last=Bursztynsky |first=Jessica |title=Instacart acquires AI pricing platform Eversight |url=https://www.fastcompany.com/90784547/instacart-acquires-ai-pricing-platform-eversight |work=[[Fast Company]] |date=September 1, 2022 |access-date=September 2, 2022 |archive-date=September 2, 2022 |archive-url=https://web.archive.org/web/20220902160416/https://www.fastcompany.com/90784547/instacart-acquires-ai-pricing-platform-eversight |url-status=live }}</ref>

Also in September 2022, the company acquired Rosie, an e-commerce platform for local and independent retailers and wholesalers.<ref>{{Cite news |last=Malik |first=Aisha |title=Instacart acquires Rosie to offer new e-commerce solutions for local and independent retailers |url=https://techcrunch.com/2022/09/07/instacart-acquires-rosie/ |work=[[TechCrunch]] |date=September 7, 2022 |access-date=December 22, 2022 |archive-date=December 22, 2022 |archive-url=https://web.archive.org/web/20221222185824/https://techcrunch.com/2022/09/07/instacart-acquires-rosie/ |url-status=live }}</ref>

==Service model==
Orders are fulfilled and delivered by a [[personal shopper]], who picks, packs, and delivers the order within the customer's designated time frame—within one hour or up to five days in advance.<ref>{{Cite news | url=https://shenandoahcountryq102.iheart.com/content/2019-01-08-instacart-launches-same-day-grocery-delivery-service-in-winchester/ | title=Instacart Launches Same-Day Grocery Delivery Service in Winchester | author=Lori | work=[[iHeartMedia]] | date=January 8, 2019 | access-date=June 10, 2019 | archive-date=January 22, 2021 | archive-url=https://web.archive.org/web/20210122005118/https://shenandoahcountryq102.iheart.com/content/2019-01-08-instacart-launches-same-day-grocery-delivery-service-in-winchester/ | url-status=live }}</ref><ref>{{Cite news | url=https://progressivegrocer.com/fresh-market-expands-instacart-all-stores | title=The Fresh Market Expands Instacart to All Stores | work=Progressive Grocer | date=May 16, 2019 | access-date=June 10, 2019 | archive-date=January 22, 2021 | archive-url=https://web.archive.org/web/20210122002114/https://progressivegrocer.com/fresh-market-expands-instacart-all-stores | url-status=live }}</ref> Instacart has item pricing that differ from those purchased directly in store.<ref>{{Cite news | url=https://www.instacart.com/help/section/360007902791 | title=Instacart pricing | access-date=April 14, 2024 | archive-date=May 11, 2024 | archive-url=https://web.archive.org/web/20240511104819/https://www.instacart.com/help/section/360007902791 | url-status=live }}</ref>

===Alcohol===
Instacart provides alcohol delivery and pickup in 27 states,<ref>{{Cite news |date=April 19, 2022 |title=Instacart Alcohol Delivery: How It Works and How Much It Costs |url=https://www.shopfood.com/online-shopping/instacart-alcohol-delivery/ |access-date=January 31, 2023 |website=Shopfood.com |language=en-US |archive-date=January 30, 2023 |archive-url=https://web.archive.org/web/20230130145957/https://www.shopfood.com/online-shopping/instacart-alcohol-delivery/ |url-status=live }}</ref> 2 provinces in Canada, and Washington, D.C.<ref>{{Cite news |last=Biryukov |first=Nikita |date=August 26, 2022 |title=New Jersey will allow DoorDash, Instacart to deliver alcohol and cocktails |url=https://newjerseymonitor.com/briefs/new-jersey-will-allow-doordash-instacart-to-deliver-alcohol-and-cocktails/ |access-date=January 31, 2023 |website=New Jersey Monitor |language=en-US |archive-date=January 31, 2023 |archive-url=https://web.archive.org/web/20230131181744/https://newjerseymonitor.com/briefs/new-jersey-will-allow-doordash-instacart-to-deliver-alcohol-and-cocktails/ |url-status=live }}</ref> Instacart has alcohol delivery partnerships with more than 600 retail banners that span more than 21,000 stores.<ref>{{Cite news |last=Campbell |first=Jeff |date=May 11, 2020 |title=Can Instacart Deliver Alcohol? (Yes, but not in every state) |url=https://thegrocerystoreguy.com/can-instacart-deliver-alcohol/ |access-date=January 31, 2023 |website=The Grocery Store Guy |language=en-us |archive-date=January 31, 2023 |archive-url=https://web.archive.org/web/20230131165020/https://thegrocerystoreguy.com/can-instacart-deliver-alcohol/ |url-status=live }}</ref><ref>{{Cite news |last=Horwath |first=Bryan |date=September 12, 2022 |title=Demand grows for streamlined local liquor-delivery laws - VEGAS INC |url=https://vegasinc.lasvegassun.com/business/2022/sep/12/demand-grows-for-streamlined-local-liquor-delivery/ |access-date=January 31, 2023 |website=Las Vegas Sun |archive-date=January 31, 2023 |archive-url=https://web.archive.org/web/20230131181743/https://vegasinc.lasvegassun.com/business/2022/sep/12/demand-grows-for-streamlined-local-liquor-delivery/ |url-status=live }}</ref>

==Key people==
===Max Mullen===
'''Max Mullen''' is an American entrepreneur and businessman, best known as the co-founder of Instacart.<ref>{{Cite web |last=Lung,Bloomberg |first=Biz Carson,Natalie |title=Instacart's founder is worth a cool $1.3 billion after IPO—and today he cut all ties with the company |url=https://fortune.com/2023/09/19/instacart-cofounder-net-worth/ |access-date=2024-07-29 |website=Fortune |language=en}}</ref> Mullen played a crucial role in building Instacart into a multi-billion dollar company.<ref name="review.firstround.com">{{Cite web |date=2021-11-04 |title=Instacart co-founder Max Mullen gets tactical on crafting company values and intentionally building culture |url=https://review.firstround.com/podcast/instacart-co-founder-max-mullen-gets-tactical-on-crafting-company-values-and-intentionally-building-culture/ |access-date=2024-07-29 |website=First Round Review |language=en}}</ref>

Mullen was born and raised in [[Los Angeles|Los Angeles, California]]. He attended the [[University of Southern California]], where he studied and graduated with a [[Bachelor of Science|B.S.]] in Business Administration.<ref>{{Cite web |last=Adams |first=Susan |title=The Schools That Graduate The Most Billion-Dollar Startup Founders |url=https://www.forbes.com/sites/susanadams/2017/01/27/the-schools-that-graduate-the-most-billion-dollar-startup-founders/ |access-date=2024-07-29 |website=Forbes |language=en}}</ref> After graduating, Mullen began his career at Schematic,<ref name=":0">{{Cite web |title=Max Mullen {{!}} Wellfound (formerly AngelList Talent) |url=https://wellfound.com/p/max }}</ref> an interactive agency later acquired by [[WPP plc|WPP]].<ref>{{Cite web |date=10 September 2007 |title=WPP Digital acquires Schematic, a leading interactive design company {{!}} WPP |url=https://www.wpp.com/news/2007/09/wpp-digital-acquires-schematic-a-leading-interactive }}</ref>

He spent six years at Schematic, starting as a Systems Engineer from 2004 to 2006, before being promoted to Director of Client Services from 2006 to 2010.<ref name=":1">{{Cite web |title=Max Mullen {{!}} LinkedIn |url=https://www.linkedin.com/in/maxmullen/}}</ref> In 2010, Mullen ventured into entrepreneurship by founding Volly,<ref name=":0" /> a startup that allowed users to collaborate with friends to make group decisions. Following Volly, Max worked as a Product Manager at Location Labs (now part of [[Avast]]) from 2011 to 2012.<ref name=":0" /><ref name=":1" />

Max is known for his customer-centric approach to business. He focused on customers from day one and advocates for learning from customer feedback to drive product development.<ref name="review.firstround.com"/> One of Max's notable contribution was the development of the capacity system, which ensures that Instacart only accepts orders it can fulfill in a timely manner.<ref>{{Cite web |title=Building a Customer-focused Grocery Delivery Startup with Max Mullen, co-founder at Instacart. |url=https://fundersclub.com/blog/2016/08/08/max-mullen/ |access-date=2024-07-29 |website=FundersClub |language=en}}</ref>


==References==
==References==
{{Reflist}}
{{Reflist}}

==External links==
* {{Official website}}
{{Finance links
| name = Maplebear Inc.
| symbol = CART
| reuters = CART.O
| bloomberg = CART:US
| sec_cik = 1579091
| yahoo = CART
| google = CART:NASDAQ
}}


{{Online food ordering}}
{{Online food ordering}}
{{authority control|state=expanded}}


[[Category:Online grocery delivery]]
[[Category:2012 establishments in California]]
[[Category:2023 initial public offerings]]
[[Category:American companies established in 2012]]
[[Category:Companies listed on the Nasdaq]]
[[Category:Internet properties established in 2012]]
[[Category:Multinational companies headquartered in the United States]]
[[Category:Online grocers]]
[[Category:Retail companies established in 2012]]
[[Category:Retail companies established in 2012]]
[[Category:Technology companies based in California]]
[[Category:Transport companies established in 2012]]
[[Category:Transport companies established in 2012]]
[[Category:Internet properties established in 2012]]
[[Category:Y Combinator companies]]
[[Category:Y Combinator companies]]

Latest revision as of 19:51, 11 December 2024

Maplebear Inc.
Instacart
Company typePublic
IndustryRetail
FoundedJune 2012; 12 years ago (2012-06)
Founders
Headquarters50 Beale Street
San Francisco, California, U.S.
Area served
United States and Canada
Key people
Fidji Simo (CEO)[1]
ServicesGrocery delivery
RevenueIncrease US$3.04 billion (2023)
Decrease US$−2.1 billion (2023)
Decrease US$−1.6 billion (2023)
Total assetsIncrease US$4.73 billion (2023)
Total equityIncrease US$3.75 billion (2023)
Owners
Number of employees
3,380 (2023)
SubsidiariesCaper AI
Websiteinstacart.com
instacart.ca
Footnotes / references
[2][3]
The Instacart logo is a simplified carrot. Logo since 2022.

Maplebear Inc.,[2] doing business as Instacart, is an American delivery company based in San Francisco that operates a grocery delivery and pick-up service in the United States and Canada accessible via a website and mobile app.[4] It allows customers to order groceries from participating retailers with the shopping being done by a personal shopper.[5] The company also provides alcohol delivery in states and provinces where it is allowed. It has partnerships with 1,500 retail banners comprising 85,000 stores.[6][7] Instacart reaches nearly 98% of SNAP households, offering delivery services from nearly 180 retail banners, including ALDI, Food Lion, Publix, The Save Mart Companies and Walgreens, spanning more than 30,000 stores across all 50 states and Washington D.C.[8] Since its founding, Instacart Marketplace has powered more than $100 billion of GTV and over 900 million orders with approximately 20 billion items ordered.[9]

History

[edit]

Instacart, since its inception, has grown and expanded from just serving in San Francisco to across the United States[10][11][12] and later on even in Canada in 2017.[13][14]

Corporate history

[edit]

After getting inspiration from being low on groceries without owning a car[15][16] as well as his trips to the grocery store by bus in the cold while growing up in Canada,[17] Apoorva Mehta founded Instacart in 2012 at age 26. He tried to apply for funding through Y Combinator but missed the deadline. He eventually got a meeting by using the Instacart mobile app to deliver a six-pack of beer from 21st Amendment Brewery to a Y Combinator partner[15] and was admitted to the summer of 2012 batch.[18] Y Combinator helped Mehta raise $2.3 million in funding[15] and enabled him to meet his two co-founders, Max Mullen and Brandon Leonardo.[17][19] The company’s name is a combination of "maple," in reference to Canada, and "bear," for the logo on the California state flag, as Mehta grew up in Canada and moved to California.[20]

In 2020 during the COVID-19 pandemic, Instacart implemented contactless delivery, safety kits and guidelines for shoppers.[21]

In July 2021, Fidji Simo was appointed CEO, while Mehta transitioned to Executive Chairman of the Board.[22]

In July 2022, Simo was appointed to succeed Mehta as chairperson once the company completed its initial public offering.[23]

In September 2023, the company became public through an initial public offering raising $660 million, valuing the company at about $10 billion.[24][25] Mehta left the company after it went public.[26]

Service launches and grocery partnerships

[edit]

Instacart was first launched in San Francisco in 2012.[27] In November 2013, Instacart added alcohol delivery in areas where alcohol delivery was legal.[28] The company expanded across the United States in the following years.[29][30][31]

In November 2017, the company expanded to Canada, first with a partnership with Loblaw Companies in Toronto and Vancouver.[32][33] By May 2018, Instacart was available for use in 11 Canadian markets and was planning expansions for five more markets.[34]

In March 2019, Instacart expanded its same-day alcohol delivery service in the U.S.[35] Effective May 2019, Whole Foods Market ended its partnership with Instacart in the U.S. given its ties to Amazon.[36][37] In February 2024, Instacart announced customers throughout Canada can now order fresh groceries and everyday essentials from Whole Foods Market on the Instacart App.[38]

In May 2020, Instacart began a partnership with Rite Aid, offering its service across 2,400 locations in 18 states.[39] In August 2020, Instacart entered its first partnership with Walmart in the U.S. to offer same-day delivery services. The partnership is a pilot program beginning in Los Angeles, San Francisco, San Diego, and Tulsa.[40][41] Additional partnerships in June included C&S Wholesale Grocers and Staples.[42][43]

Instacart had a valuation of $39 billion as of 2021.[44]

In March 2022, in partnership with TikTok, Hearst Magazine and Tasty, Instacart launched Shoppable Recipes with product integrations for food creators.[45] In the same month, Instacart introduced the Instacart Platform, a program with services for retailers. The platform launched with features for advertising, home delivery, and inventory counting.[46][47]

In May 2022, Instacart partnered with Canadian grocers Metro, Giant Tiger, and Galleria Supermarket.[48]

In March 2023, Instacart announced the availability of digital tools for medical providers to promote nutritious foods to patients and their families.[49]

In November 2023, Instacart partnered with Peacock.[50]

In May 2024, Instacart partnered with Uber Eats to give Instacart customers access to food delivery from Uber Eats U.S. restaurant partners.[51]

In June 2024, Instacart began a partnership with New York Times Cooking.[52]

Operation

[edit]

The company partners with over 1,500 retailers, covering more than 85,000 grocery stores.[53]

Pricing changes

[edit]

In August 2013, Instacart began offering an annual membership service called Instacart Express.[54] In June 2022, Instacart Express was renamed Instacart+ and new family shopping features, including sharing membership and shopping-cart collaboration with another family member for free, were added.[55]

In April 2018, Instacart changed its prices by instituting a mandatory 5% service fee on all orders. It originally offered an optional 10% service fee that went directly to Instacart that could be turned off. It also returned the gratuity option back to the checkout screen and raised the default value from 0% to 5%.[56]

Worker classification issues

[edit]

In June 2015, Instacart allowed some shoppers to choose to be part-time employees, starting with Chicago and Boston[57][58] and extending its offer to shoppers in Atlanta, Miami, and Washington, D.C. the following month.[59]

In March 2017, Instacart agreed to pay $4.6 million to settle a class action settlement stemming from the alleged misclassification of its personal shoppers as independent contractors. The suit, filed in March 2015, alleged 18 violations, including improper tip pooling and failure to reimburse workers for business expenses.[60][61]

Worker relations and pay issues

[edit]

In November 2016, the company removed the option to leave a gratuity in exchange for a service fee that would be used to pay workers instead. The backlash against the policy from customers and some shoppers forced the company to reinstate the option only weeks later with modifications that placed the tip under the service fee section on a separate page.[62][63]

In November 2017, some Instacart workers participated in a strike action, alleging wages as low as $1 an hour. Instacart claimed that the strike had no impact on its operations.[64]

In February 2018, Instacart mistakenly withheld tips given by customers to shoppers, blaming a software bug. In addition, customers were often charged for service fees that were supposed to be waived.[65]

In November and December 2018, Instacart again changed its pay system for its personal shoppers; shoppers claimed this pay system resulted in substantially lower pay and boycotted. Instacart customers complained on social media that their orders were being delayed.[66][67][68]

In February 2019, an online organizing campaign, including shoppers, provided examples of payments to shoppers as low as $0.80 per delivery. The company announced that it would revise its pay system and give back pay to some workers.[69][70] Under the revised pay system, tips were no longer factored into the minimum base wages, which were newly set at $7–10 for a full-service shopping order (based on delivery market) and $5 for delivery only.[71][72]

On April 11, 2019, the company expanded its services to offering an on-demand option for its workers, in order to allow workers to work more flexible schedules.[73]

In February 2020, Instacart employees in Skokie, Illinois voted to form a trade union. Instacart said it "will honor" the vote, pending certification of the results. In the lead-up to the election, high-level Instacart managers distributed anti-union literature at a Skokie grocery store where some of the unionizing workers picked up groceries for delivery.[74] At the time, about 12,000 of Instacart's 142,000 workers were employees with the option of unionizing.[75]

From mid-March to mid-April 2020, during the COVID-19 pandemic, as a result of a surge in usage of the mobile app, Instacart hired an additional 300,000 workers to meet the surge in demand for grocery deliveries.[76][77][78]

Instacart workers threatened to strike on March 27, 2020 due to a lack of COVID-19 safety measures.[79] Workers demanded hazard pay and personal protective equipment.[80] In early April 2020, Instacart began providing safety kits to workers.[81] In May, workers reported being denied sick leave despite quarantining under the advice of a doctor. Instacart required that workers either get a positive COVID-19 test or be under a mandatory quarantine by a public health agency or other government agency.[82][83] By June, Instacart changed its sick leave rules in an agreement reached by it and D.C. Attorney General, Karl Racine. Under the agreement, Instacart provided paid leave to workers who were clinically diagnosed with COVID-19 by a doctor or other medical professional along with those who had a household member contract COVID-19. The agreement also provided access for workers to telemedicine services.[84][85]

In January 2021, Instacart announced a $25 stipend to provide financial assistance to company shoppers who choose to get the COVID-19 vaccine.[86][87]

In January 2021, the company announced plans to lay off nearly 2,000 employees, including all of its employees who had voted to unionize. Instacart said that the layoffs were due to stores increasingly using Instacart to have consumers place orders, but have their own employees fulfill the order instead of Instacart's workforce, reducing reliance on Instacart's in-store shoppers.[88][89][90]

Acquisitions

[edit]

In January 2018, the company acquired Toronto-based Unata, a white-label platform for grocers, for $65 million.[91][92][93]

In October 2021, Instacart acquired smart cart and checkout company Caper AI for $350 million.[94]

In September 2022, Instacart announced the acquisition of Eversight, an artificial intelligence pricing platform for brands and retailers.[95][96]

Also in September 2022, the company acquired Rosie, an e-commerce platform for local and independent retailers and wholesalers.[97]

Service model

[edit]

Orders are fulfilled and delivered by a personal shopper, who picks, packs, and delivers the order within the customer's designated time frame—within one hour or up to five days in advance.[98][99] Instacart has item pricing that differ from those purchased directly in store.[100]

Alcohol

[edit]

Instacart provides alcohol delivery and pickup in 27 states,[101] 2 provinces in Canada, and Washington, D.C.[102] Instacart has alcohol delivery partnerships with more than 600 retail banners that span more than 21,000 stores.[103][104]

Key people

[edit]

Max Mullen

[edit]

Max Mullen is an American entrepreneur and businessman, best known as the co-founder of Instacart.[105] Mullen played a crucial role in building Instacart into a multi-billion dollar company.[106]

Mullen was born and raised in Los Angeles, California. He attended the University of Southern California, where he studied and graduated with a B.S. in Business Administration.[107] After graduating, Mullen began his career at Schematic,[108] an interactive agency later acquired by WPP.[109]

He spent six years at Schematic, starting as a Systems Engineer from 2004 to 2006, before being promoted to Director of Client Services from 2006 to 2010.[110] In 2010, Mullen ventured into entrepreneurship by founding Volly,[108] a startup that allowed users to collaborate with friends to make group decisions. Following Volly, Max worked as a Product Manager at Location Labs (now part of Avast) from 2011 to 2012.[108][110]

Max is known for his customer-centric approach to business. He focused on customers from day one and advocates for learning from customer feedback to drive product development.[106] One of Max's notable contribution was the development of the capacity system, which ensures that Instacart only accepts orders it can fulfill in a timely manner.[111]

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[edit]
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