Instacart valuation rockets to $13.7B with new fundingJune 11, 2020
Grocery delivery provider Instacart has raised $225 million at a $13.7 billion valuation—a jump from its $7.9 billion value in late 2018. DST Global and General Catalyst led the funding round.
Instacart has experienced "an unprecedented surge in customer demand" during the coronavirus outbreak, the company said in a statement. As a result, it has doubled the number of shoppers—Instacart's term for freelance workers who fulfill customer orders—to more than half a million in North America.
Rival grocery delivery services, such as those offered by Walmart and Amazon, have also hired thousands of workers to meet new demand. But Instacart has surged ahead in recent months, claiming more than half of the US weekly market share of grocery delivery, according to Second Measure data reported by The Information.
The rapid expansion amid a pandemic has led to resistance from gig workers, who have listed demands such as hazard pay and safety gear. Before a strike by workers in late March, the company announced temporary bonuses and extended its sick pay policy for workers diagnosed with COVID-19, among other changes.
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