Shipt , an online grocery delivery service, announced today funding of $40 million led by Greycroft Partners, with participation from e.ventures and Harbert Venture Partners.
The Birmingham, Alabama-based startup partners with grocery retailers and a community of “Shoppers” for in-home delivery. Customers must become members to place an order on Shipt, paying $99 per year for free delivery over $35. The elephant in the room here is obviously Instacart, its primary competitor.
The San Francisco-based giant, which recently raised $400 million in a round led by Sequoia Capital, does not require its customers to become paying members to shop via their app. This is a tough act to follow, but Shipt’s CEO Bill Smith is optimistic: “We want to serve ‘the rest of America,’ not just early adopters,” he wrote in an email to VentureBeat. “So our coverage area extends beyond city centers to reach the suburban families that make up many of our core […]