Jordan Bevan
What is Instacart?
Instacart is an on-demand grocery delivery company that provides grocery shopping, delivery, and pick-up services in the USA and Canada through a website and mobile app. Founded by Apoorva Mehta, Brandon Leonardo, and Max Mullen in 2012, Instacart currently has a valuation of about $24 billion.
Alongside its standard model, Instacart also offers a subscription package called Instacart Express for $9.99 per month or $99 per year. The membership allows members to waive delivery charges for orders over $35.
Company Overview
| Headquarter | San Francisco, CA |
| Number of Employees | 10,000+ |
| Founded Date | June 2012 |
| Founders | Apoorva Mehta, Brandon Leonardo, Max Mullen |
| Website | https://www.instacart.com/ |
| Crunchbase Profile | Profile Link |
| IPO Date | September 19, 2023 |
| Ticker Symbol | CART |
Funding Rounds
- January 2015: Instacart raised $220 million at a $2 billion valuation (Bloomberg)
- March 2017: Instacart raised $400 million at a $3.4 billion valuation (Techcrunch)
- February 2018: The company raised $200 million at a $4.2 billion valuation. (Techcrunch)
- October 2018: Instacart valued at $7.6 billion after raising $600 million. (Reuters)
- November 2018: Instacart raised an extra $271 million. (Reuters)
- June: 2020: Instacart raised $225 million at nearly $14 billion valuation. (CNBC)
- October 2020: Instacart valuation more than doubled to $17.8 billion after raising $200 million. (CNBC)
- March 2021: Instacart raised $265 million from existing investors, at a $39 billion valuation.
Instacart Valuation
Instacart went public on September 19, 2023. Instacart closed its first day of trading at $33.70, up 12% from its initial public offering price of $30.
- On May 12, 2022, Instacart announced that it confidentially filed for an IPO. However, it was said on October 2022 that the company pull back on its IPO plans. (The WSJ)
- Instacart valuation was slashed by 40% to about $24 billion, in order to attract talent and adapt to market conditions. (Bloomberg)
- December 2022: According to The Information, Instacart, which bankers expect will list its shares publicly in 2023, has cut its internal valuation to around $10 billion.
| Instacart Valuation | |
|---|---|
| December 2022 | $10 billion |
| March 2022 | $24 billion |
| March 2021 | $39 billion |
| October 2020 | $17.8 billion |
| June 2020 | $13.7billion |
| October 2018 | $7.6 billion |
| March 2017 | $3.4 billion |
| January 2015 | $2 billion |
Instacart Revenue Statistics
- Instacart revenue for the full year 2023 was $3,042 million, up 19% year-over-year, representing 10% of GTV. For 2023, the company reported a GTV of 30,322 million, up 5% year-over-year. Transaction revenue for the full year was $2,171 million, up 20% YoY, while advertising revenue was $871 million, up 18% YoY.
- Instacart revenue for the first quarter of 2024 was $820 million, up 8% year-over-year, representing 7.2% of GTV. For the quarter, its GTV increased 11% YoY to $8,319 million. Its transaction revenue totaled $603 million, up 8% YoY, while advertising revenue was $217 million.
Instacart Usage Statistics
- For the first quarter of 2024, Instacart orders reached 269.2 million, up 3% year-over-year. For the full year 2023, the company reported 72.8 million orders, 9% year-over-year.
- In 2020, Instacart reached 10 million active users and 500,000 active shoppers.
| Year | Instacart Users | Instacart Shoppers |
|---|---|---|
| 2020 | 9.6 million | 500,000 |
| 2019 | 5.5 million | 130,000 |
| 2018 | 4.3 million | 70,000 |
| 2017 | 3.3 million | |
| 2016 | 20,000 | |
| 2014 | 5,000 |
Instacart’s market share of US downloads among the top food delivery apps surged from 5 percent in 2019 to 12 percent in 2020, where it remains for the first two months of 2021. (Sensor Tower)
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