Grocery delivery startup Instacart recently closed a $400 million Series D round of funding at a valuation of $3.4 billion. Now, the company is putting that capital to work by accelerating its expansion across the US, and offering free Instacart Express memberships to entice new users wherever it goes.
According to the company’s Vice President of Product, Elliot Shmukler , the company is operating in 41 U.S. markets today and is launching into 4 new markets this week, including Detroit, Columbus Ohio, across Texas’ Rio Grande Valley, and Las Vegas. New customers in Texas and the Midwest will be able to try its Instacart Express membership free for 1 year, he said.
Typical Instacart Express members use the service 4-5 times per month and spend $450 per month on groceries and deliveries through the platform, the company claims. The geographic push and Instacart Express trials will require the company to hire at least 1,000 more shoppers to fulfill orders in new markets, Shmukler said.
Overall, Instacart aims to make its service available to 80% of US households by 2018. When news of Instacart’s latest funding round broke, some Silicon Valley observers cried “bubble,” and compared the company to Webvan , the dotcom […]