Instacart Raises $200M to Fend Off Amazon

Grocery delivery startup Instacart is working to keep Amazon.com, Inc. (NASDAQ:AMZN) from taking its business.

Instacart Raises $200M to Fend Off Amazon

Instacart notes that a recent round of funding saw it bring in an additional $200 million. The company says that it hopes to use these funds to expand its business. It also wants to keep rivals, such as Amazon, from eating into the market.

According to Instacart CEO Apoorva Mehta, the company is planning to hire an additional 200 employees in 2018. It also wants to move beyond the 190 markets it the U.S. and Canada that it operates in. He also says that the startup wants to launch a new service “beyond delivery.”

While Instacart isn’t anywhere close to the size of Amazon, it says there are unique circumstances that can help it fight the company. This includes signing exclusive delivery deals with grocery chains. Grocery chains are also worried about Amazon’s expansion into the market with its purchase of Whole Foods, reports Bloomberg.

The recent push back against Amazon from Instacart comes shortly after the announcement of a new program from the former. This program allows Amazon Prime customers to make orders from Whole Foods. These orders show up within two hours and shipping if free. The service is still in testing and only available in a few areas.

The most recent round of funding for Instacart brings its total money raised to $900 million. The current value of the company is sitting at $4.2 billion.

AMZN stock was up 3% as of Monday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/02/instacart-looks-to-take-on-amazon/.

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