Whole Foods Market (WFM) Delivery Partner InstaCart Reportedly Raises North of $100M
In September, Whole Foods Market, Inc. (NASDAQ:WFM) and Instacart announced a partnership enabling customers to receive their favorite Whole Foods Market products delivered in as little as one hour or to make in store pickups in 15 markets.
Company raising $100 million in a Series C Round
Now Instacart, a startup that specializes in delivering groceries to consumers, is now raising more than $100 million in a Series C round, at a valuation of $2 billion. This represents a very large increase in valuation from the month of June. Back then, the company was able to raise $44 million at a valuation of $400 million. The total amount raised by Instacart so far has been $154.8 million.
Instacart was launched in 2012 and delivers groceries to people in 10 cities. Their grocery delivery service lets people get their groceries in about an hour. Instacart charges $5.99 for their one hour delivery service and $3.99 for delivery in two hours. While their service is innovative, it is far from being the only one in existence. There are several startups which are trying to dominate the speedy delivery market, such as WunWun, a company based in New York that delivers small grocery orders and other items with no delivery fee, all in less than an hour. There is also FreshDirect, which delivers groceries all over the Northeast with a delivery charge of up to $7.99.
Even though many companies that operated in the speedy delivery arena are startups, some of the big players in the tech industry have also noticed the potential and launched services of their own. Google has a service called Shopping Express and Amazon launched AmazonFresh. Both companies are currently trying out same-day grocery delivery services. Both Google and Amazon now have the ability to bring groceries to customers in certain cities, however their delivery times aren’t as fast as those offered by the startup companies such as Instacart and WunWun.
So far, Instacart hasn’t responded to media calls for comment about the funds they have raised. However, some believe that the company may be planning to use this money in order to eventually expand its operations into more cities around the nation.
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