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Instacart Business Revenue Model

What is Instacart? Instacart Business Revenue Model

Instacart is an on-demand foodstuff delivery platform facilitating home deliveries of foodstuff and other living place essentials in big cities of united state.Instacart is one of the most promising and trusted company of USA which is based on dividing economy model. The technology added business model of Instacart boosts of delivering foodstuff to consumers in as little as one hour. Instacart Business Revenue Model.

This foodstuff delivery startup has become so popular in the on-demand sector that a lot of budding businessmen are willing to get knowledge about Instacart business model and understand its whole working in order to develop the next big thing in the dividing economy.

Founders, Funding received, Facts and Timeline

Instacart was founded in year 2012. It is a recent technology developments which has shaken the world by its unique business model. Instacart has received big funding to expand its foodstuff delivery operations all across United State because Being considered as a head in on-demand economy.

Here are some facts about Instacart:
• Founded by: Apoorva Mehta (CEO / Founder) and Max Mullen (Co-Founder)
• Funding received: $300 million (Till the mid of year 2016)
• Company Valuation: $2.5 Billion. (As per Jan 2016)
• Income: $100 million (As of Jan 2016).
• Headquarters: San Francisco, California, USA.

The following picture will help you to understand the rapid growth of Instacart.

To know what makes Instacart a promising or trusted company, let me take you through the salient features and the value propositions of Instacart. However, we’ll move on to understand Instacart’s basis working and its consumer segments.

Remarkable Features of Instacart Business Revenue Model:

• Available in big areas of the USA including SF Bay Area, NYC, San Jose Brooklyn, Philadelphia, Washington DC Boston, Chicago, Austin, Seattle and Los Angeles.
• A collection of over 300,000 items from several stores such as Whole Foods, Safeway or Costco enabling consumers to place orders from their preferable store or collected items from different stores into one order.

Value Proposition:

• Tie-ups with existing supermarkets
• Vast inventory
• Extremely quick delivery
• No warehouses

Three Customer Segments Explained: Instacart Business Revenue Model

• User have an app from where they can order groceries by choosing one or more stores.

• They can even order from a desktop or laptop using a web based interface or mobile app.

• Users pay online for their order and can tip their shopper in advance during check out.

• Option to shop from any of the available stores in near by. You can place the order with combining items from different stores.

• Users can schedule orders for a specific day and time.

• Shoppers receive orders on their smart phones.

• Shoppers are stationed near the stores in order to save time.

• They pick up the ordered items manually and deliver it to the customer.

• Apart from the per hour pay, shoppers often get a tip from customers.

• Instacart has tie-ups with major superstores in various cities.

• These stores have been able to increase their revenue through online sales via Instacart.

Instacart Business Model Canvas

The 4 step model about How Instacart Works: Instacart Business Revenue Model

1. A consumer places his order for foodstuff and pays online to instacart through online payment mode.
2. A personal shopper receives the order and starts collecting items as mentioned in the order.
3. Customers can pays the bill through Instacart’s prepaid debit card which is accepted at the store.
4. The shopper then goes to deliver the groceries to the customer as per the address mentioned in the order.
Tip paid by the customers in cash at the time of delivery directly goes to the shopper and the tip paid to shopper during checkout gets accumulated in his Instacart account and is paid at the end of the week along with the salary. Instacart Business Revenue Model

Instacart revenue model – How it makes money?

Delivery Fee
standard delivery fee of $3.99 for a scheduled or 2 hour delivery and $5.99 for a 1 hour delivery.Orders under $30 value are charged at $7.99 for a scheduled or 2 hour delivery and $9.99 for a 1 hour delivery.

How Instacart finds consumers?

• Word of Mouth Advertising
• Online Marketing
• First delivery free
• Various discount offers


Foodstuff delivery business has a bright future as many people want the most simple and convenient way to buy grocery items. Assuring product delivery within 2 hours, instacart has become a robust solution in the US and with $300 million capitalization, it is ready to take on other cities in the US as well as expand outside the USA. Forbes has ranked Instacart at the Number 1 spot in the list of America’s most trusted company.
So now you know everything about instacart, how Instacart works and its revenue model. This amazing technology can be used to create a similar business model in the on-demand segment. If you are planning to make the next big thing in this world like instacart, then this is the right time to take action.
Get in touch with us and know how we can help you own the next technology master piece!

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