Instacart on Tuesday announced it has raised $220 million, following a $44 million investment round in June of last year. The company uses a fleet of personal shoppers, who are independent contractors, to purchase and deliver items to customers. “The two main differentiators for Instacart are our focus on grocery and our strategy to partner with retailers,” said Nilam Ganenthiran, Instacart’s head of partnerships. “We are the grocery store’s best friend. We are helping local retailers expand rather than competing with them.”
Here's instacarts dirty little secret: they are not just an app or a service co. They are a grocery store. They actually have to buy the groceries from the grocery stores and resell them at a 20-30% markup to create the illusion of revenue and profit. So, they can say "hey vc look at this huge revenue growth! Here's my routing number"
They're big markup was a pretty big omission here.
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Instacart Bags $220 Million
Posted by: Richard Adhikari January 14, 2015 06:28 AMInstacart on Tuesday announced it has raised $220 million, following a $44 million investment round in June of last year. The company uses a fleet of personal shoppers, who are independent contractors, to purchase and deliver items to customers. “The two main differentiators for Instacart are our focus on grocery and our strategy to partner with retailers,” said Nilam Ganenthiran, Instacart’s head of partnerships. “We are the grocery store’s best friend. We are helping local retailers expand rather than competing with them.”
They're big markup was a pretty big omission here.