Everything You Need To Know About Instacart (Detailed Overview)
So, what is Instacart?
Instacart is an American retail company in grocery delivery and pick-up services. The company operates in both the United States and Canada. The company provides its services through its official website and mobile app. With the help of this platform, customers can order groceries. And there is a feature that allows customers to participate in the shopping journey through retailers. In this article, you will learn everything about the company.
Company Overview
Here is the basic information about Instacart.
Company Profile
| Company Name | Instacart |
| Founded | 2012 |
| Founder | Apoorva Mehta Brandon Leonardo Max Mullen |
| Industry | Retail |
| Type | Private |
| Headquarters | 50 Beale Street, San Francisco, California, United States |
| Key People | Fidji Simo (CEO) |
| Area Served | United States Canada |
| Service | Grocery Delivery |
| Employee Number | 3,000 |
| Revenue | $1.8 billion (2021) |
| Website | www.instacart.ca www.instacart.com |
Company Journey
Apporva Mehta was the key person behind founding Instacart. He was born in India, and later, he went to Canada in 2000. After that, he completed his education at the University of Waterloo. Apoorva participated in the Y Combinator, and this led him to create Instacart. This was the same year when he founded Instacart with Brandon Leonardo and Max Mullen. In 2013, he was on the Forbes 30 Under 30 list.
Early Days
Before starting Instacart, Apoorva used to work in several companies, including Amazon, Qualcomm, and BlackBerry. He used to be a supply chain engineer, and he was responsible for the processing of the system that includes packages from warehouses to customers’ homes. He left Amazon in 2010 and wanted to start his own business. Before Instacart, there were other 20 services that Apoorva tried, but he failed. He also began an ad network for social media where he focused on social gaming companies.
First Breakthrough
The company was founded in San Francisco. And within only one year, the company started an annual membership called Instacart Express. In 2015, the company had around 200 employees. And in the same year, there was a new policy introduced where shoppers had the opportunity to be part-time employees. This service was started in Boston and Chicago. Later it extended to Washington D.C., Miami and Atalanta.
Company Expansion
In 2016, the company announced that it would expand to the north side of Chicago. After a couple of months, it expanded to Minneapolis, California, and Orange County. And in the same year, the company changed a couple of policies where it removed the leave of gratuity. But, the policy was not a good one that shoppers liked, so it backlashed. So, it had to modify the policy.
Policy Change
There was misclassification of personal shoppers and independent contracts. So, the company needed to pay $4.6 million and settle the class action. The company also violated 18 different policies, and there were some losses. Then the company was successful in raising $400 million at a valuation of $3.4 billion. 2017 was the year when Instacart was able to expand its services to Canada.
Partnership
Then it signed a contract with Loblaw Companies and started its services in both Vancouver and Toronto. At the same time, the company faced a strike, and there was an allegation regarding wages. Later, the company told that there was no impact of that. In 2018, the company started a new policy, where there would be a minimum of a 5% service fee. In the same year, the company raised another $200 million at a valuation of $4.2 billion.
Expansion in Canada
In late 2018, the company again raised another $600 million, and the valuation was around $7.6 billion. Then the company expanded through partnering with Staples Canada, Walmart Canada, Kroger, M&M Food Market, Sam’s Club, Aldi, Costco, and Publix. In 2019, there was an online campaign, and the company made some changes in the pay system. This was the time when it started to pay the minimum wage of $5 for delivery. By the end of 2019, the company started its alcohol delivery, and the service was quite good.
Frequently Asked Questions (FAQs):
Here are some interesting questions and answers that most people ask about Instacart.
Ans. When it comes to Instacart shopper, full-service shoppers get paid, but that depends on the order. They provide potential earnings for orders, and then there is a guarantee that a shopper will get a minimum of $5 for every delivery. And for full-service delivery, the company pays around $7 to $10. So, I hope now you get the answer to how much does Instacart pay.
Ans. Most people ask whether Instacart Shoppers make money or not. So, the answer is that shoppers can earn between $15 to $25 per hour. But it depends on the market. If you see the minimum wage, then you will know that this is higher than the minimum wage. Instacart is also famous for its flexibility, and you can work whenever you want to work. So, someone who works with Instacart can make a decent amount of money.
Ans. Actually, the answer is that you can’t take anyone while on an active batch. Bringing someone is against the company policy. Suppose you have brought someone and then got reported or caught. You can be deactivated. Some people take their children while on an active batch, but until someone reports against you, you are safe. But, it is not recommended.
Final Words
In early 2022, the company appointed Fidji Simo as the new CEO, and Apoorva Mehta became the Executive Chairman of the Board. At the same time, the company started Instacart+ members. Then the company focused on Women-Owned Brands for advertising and marketing purposes. It has a partnership with Tasty, Hearst magazine, TikTok, and other companies. Last year, the company acquired Rosie and started independent retailing services.
I hope now you get the answer to how does Instacart work, all you need to do is to Instacart log in and start earning. If you have any queries, feel free to ask in the comment section below.
Thank You.
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Mashum Mollah is the feature writer of Search Engine Magazine and an SEO Analyst at Real Wealth Business. Over the last 3 years, He has successfully developed and implemented online marketing, SEO, and conversion campaigns for 50+ businesses of all sizes. He is the co-founder of Social Media Magazine.
