Venture Capital News: Instacart Secures Round with Whole Foods
2016-03-10
SAN FRANCISCO, CA, Instacart, an on-demand grocery delivery service, has raised an undisclosed amount of equity funding from Whole Foods as part of a broader strategic partnership.
Whole Foods Market (WFM) and Instacart have deepened their partnership and are launching in several new markets in the coming year, building on the 17 existing metros where consumers use Instacart's delivery service to order from Whole Foods Market stores. The companies are also looking ahead to create new e-commerce and delivery solutions, as well as increase the number of Whole Foods Market stores with Instacart shoppers for the fastest and most high quality service.
Since first partnering in September 2014, Instacart has helped Whole Foods Market customers conveniently purchase fresh groceries online and have them delivered to their doors in as little as one hour. The new partnership means Instacart will be Whole Foods Market's largest partner for online ordering and delivery. Collectively, the two companies will deliver more fresh groceries to households in the U.S. than anyone else.
In addition to serving new cities, the companies will grow the number of Whole Foods Market stores with embedded Instacart shoppers by up to 50 percent nationwide by the end of 2016. This will create a more robust delivery network in both new and existing cities.
'We've seen how much our customers love this fast and convenient way to receive Whole Foods Market groceries right to their door, so we are excited to extend our relationship with Instacart,' said Walter Robb, co-CEO of Whole Foods Market. 'Working together, we will continue to find even more ways to create outstanding shopping experiences - whether they're happening in the digital space or within the four walls of our stores.'
'Instacart has always prided itself on being a retailer's best friend, and our extended partnership with Whole Foods Market is a testament to how brick and mortar retailers can successfully adapt to the growing demand for ecommerce and on-demand delivery services,' said Apoorva Mehta, CEO of Instacart. 'Instacart and Whole Foods Market share a mutual commitment to providing our customers with the easiest and most seamless grocery shopping experience possible. We look forward to continuing to innovate with Whole Foods Market in the services that we can bring to users.'
In the coming year, the two companies will expand into several new markets where Instacart will be delivering from Whole Foods Market stores. The first two markets coming this year are Orange County, California and Baltimore, Maryland. The organizations are also exploring new technology solutions and services that will be piloted in 2016.
By ordering at Instacart.com or via the Instacart mobile app, Whole Foods Market customers add items to a virtual cart, choose a delivery window (within one hour, within two hours, or at a scheduled time), check out, and receive their orders from Instacart personal shoppers. Additionally, with the Instacart Deals platform, Whole Foods Market shoppers can take advantage of special deals and discounts on their favorite products. Virtual coupons from Instacart Deals are immediately applied, and customers see their savings at checkout.
Customers with the Whole Foods Market iOS app can browse thousands of recipes, create shopping lists, and then conveniently order the ingredients from the Instacart app. The seamless integration offers recipe inspiration, preparation and purchase in one simple, user-friendly experience.
About Whole Foods Market
Founded in 1978 in Austin, Texas, Whole Foods Market is the leading natural and organic foods supermarket, the first national 'Certified Organic' grocer, and uniquely positioned as America's Healthiest Grocery Store. In fiscal year 2015, the Company had sales of approximately $15 billion and currently has 436 stores in the United States, Canada, and the United Kingdom. Whole Foods Market employs approximately 85,000 team members and has been ranked for 18 consecutive years as one of the '100 Best Companies to Work For' in America by Fortune magazine. For more information, please visit www.wholefoodsmarket.com.
About Instacart
Instacart allows people to order groceries online by connecting them with personal shoppers who hand pick items at customers' local, favorite stores and deliver straight to their doors. Founded in San Francisco in 2012, Instacart has quickly scaled to 18 metropolitan areas across the U.S. and partnered with dozens of grocery retailers, including popular national chains (Whole Foods Market, Costco, Petco) as well as local, regional grocers. By combining a personal touch with cutting-edge technology, Instacart offers customers a simple solution to save time and eat fresh food from the grocery brands they trust. Instacart is the only grocery service that can meet today's on-demand lifestyle by delivering in as little as one hour. First delivery is free at www.Instacart.com.
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