Value of Instacart doubles to $17.7 BILLION as shoppers go online

The value of Instacart has more than doubled to $17.7 billion as people shop online amid the pandemic, making the startup one of America’s most valuable companies.

The grocery delivery service announced Thursday it raised $200 million in its latest funding round, led by existing investors Valiant Capital and D1 Capital Partners.  

This latest boost has taken Instacart’s value soaring from $7.9 billion at the start of the year to $17.7 billion in October and its share of the grocery delivery market has now grown to almost 50 percent. 

The eCommerce grocery industry has been one of the few winners from the coronavirus pandemic as lockdowns and fears over the virus sent people online and many are still opting for home cooking as restaurants operate at reduced capacity. 

The value of Instacart has more than doubled to $17.7 billion as people shop online amid the pandemic, making the startup one of America's most valuable companies

The value of Instacart has more than doubled to $17.7 billion as people shop online amid the pandemic, making the startup one of America’s most valuable companies

In a funding round in June led by DST Global and General Catalyst, Instacart raised $225 million and was valued at $13.8 billion after that round. 

At the time, the company said an IPO was on the cards but did not specify when. 

The latest funding boost has seen its value more than double since the virus touched down on US soil, making it one of the most valuable private companies in the US. 

Instacart founder and CEO Apoorva Mehta said he was ‘incredibly proud’ of the company’s growth in a statement Thursday. 

‘I’m incredibly proud of our team’s work to scale our business this past year and rise to meet the unprecedented consumer demand and growth,’ he said.  

‘Their tireless efforts have allowed us to expand our marketplace…

and move grocery delivery into the mainstream… While we’re proud of these milestones, 메리트카지노주소 we believe we have a lot more work to do to deliver for 우리카지노 all the communities we serve.’  

Instacart plans to use the capital to expand its advertizing and enterprise businesses and product development.  

Instacart founder and CEO Apoorva Mehta (pictured) said he was 'incredibly proud' of the company's growth in a statement Thursday

Instacart founder and CEO Apoorva Mehta (pictured) said he was ‘incredibly proud’ of the company’s growth in a statement Thursday

The company has fared well during the coronavirus pandemic with its order volumes surging as much as 500 percent year-on-year.

It has signed up big names like Walmart, Sephora and 7-Eleven since the last round of financing and is branching out further into non-grocery goods.

Its value is now on a par with short-term property rental company Airbnb which has been hammered by the pandemic-related challenges for 메리트카지노 the travel and tourism industry, slashing its value by half to $18 billion.  

Stay-at-home orders and state lockdowns caused shoppers to switch from in-store grocery shopping to online back in March. 

Despite economies reopening, many shoppers have stuck with internet shopping as the pandemic rumbles on and physical grocery stores operate with restrictions in place. 

Meanwhile, people also switched to cooking at home as restaurants shuttered nationwide when the outbreak was at its peak. 

The eCommerce grocery industry has been one of the few winners from the coronavirus pandemic as lockdowns and fears over the virus sent people online and many are still opting for home cooking as restaurants operate at reduced capacity

The eCommerce grocery industry has been one of the few winners from the coronavirus pandemic as lockdowns and fears over the virus sent people online and many are still opting for home cooking as restaurants operate at reduced capacity

Instacart's order volumes surged as much as 500 percent year-on-year and it is now one of the most valuable private US companies

Instacart’s order volumes surged as much as 500 percent year-on-year and it is now one of the most valuable private US companies 

With restaurants operating at limited capacity, 우리카지노 with just 25 percent capacity for indoor dining in New York City, people are still choosing to stay home. 

To meet its spike in customer demand, Instacart has bucked the trend of most businesses and expanded its workforce of ‘Instacart shoppers’ from 200,000 to 500,000 this year.  

However the company is facing mounting criticism over its use of independent contractors or ‘gig workers’ who go to stores and shop on behalf of customers so they don’t have to.

The shoppers continued to work on the front line amid the pandemic but do not have access to full employee rights such as medical insurance. 

In January, California’s ‘gig worker bill’ came into effect requiring companies that hire independent contractors to reclassify them as employees. 

Gig companies have hit back with Proposition 22 which, if it passes, will roll back protections for workers but if it does not will force firms such as Instacart to provide the same protections such as medical insurance to gig workers.