On demand grocery-delivery startup Instacart has raised a new $200 million round of funding. In total, the company has raised $900 million. The money will no doubt be used to fuel its rivalry against Amazon, which is expanding its online grocery delivery service Fresh and building out new programs through its retailer Whole Foods.
Instacart expanded its network of grocers quite a bit in 2017, signing deals with Albertsons, Kroger, Publix, and owner of Giant and Stop & Shop, Ahold Delhaize. In total, the company says it has 200 grocery partners in the U.S. and Canada. The push came in the wake of Amazon’s acquisition of Whole Foods, one of Instacart’s partners. The purchase of the organic grocer had analysts questioning the viability of Instacart in a world where Amazon delivers food. At the time, Instacart maintained that its delivery structure offered traditional retail grocery shops a way of keeping a competitive edge as Amazon grows bigger. Now it wants to grow its services for grocers even more.
The new deal values the company at approximately $4.2 billion.
Source: Fast Company