Have you ever wished that your grocery items could be delivered to your door without the hassle of going to the store? It is a simple desire that led to the creation of Instacart. Today, Instacart is one of the most popular grocery delivery services in the U.S. But its story began with a person and a small idea. Let us explore this interesting story and check its success today.
Just like other entrepreneurs who dream of building something from scratch, Instacart demonstrates how a small business from home can evolve into something much larger.
How did the idea start?
Instacart was founded in 2012 by Apoorva Mehta, an Amazon engineer. While living in San Francisco, Mehta did not own a car and found grocery purchases difficult. He noticed that almost everything—books, clothes, electronics—could be delivered, but groceries were still stuck in the old way.
He created a simple app that enabled him to order groceries online. To test it, he placed an order for himself, went to the store, bought the items, and returned them to his apartment. It was Instacrat “delivery” long ago.
From solo project to startup
First of all, Instacart was run by Mehta alone. However, he soon applied to Y Combinator, a renowned program that helps startups grow and scale. There, he met his co-founders, Max Mulene and Brandon Leonardo. Together, they worked on improving the app, hiring shopkeepers, and finding investors.
This path of Instacart is similar to other modern online business ideas. For example, some people are now starting new income streams with creative digital models, such as drop servicing, where you sell services without performing the work yourself. These business styles show that you do not always need big offices or huge investments to build something successful.
A smart business model
Instacart was a significant reason, as it learned from previous failures. Years ago, another company named Webvan tried to deliver groceries, but failed after spending billions on warehouses and trucks.
Instacart avoided that mistake. Instead of opening their stores, they partnered with existing grocery stores. Instead of hiring full-time drivers, it uses personal shoppers with cars who have signed up for shopping and ordering.
This flexible system meant that Instacart did not require a large budget to start. It was simple, quick, and significantly cheaper than traditional distribution methods.
Growing up
After its launch, Instacart quickly spread to American cities. By 2013, it launched a membership plan (now called Instacart+), which offered customers unlimited delivery for a monthly fee.
By 2015, Seva was available in big cities such as New York, Los Angeles, Chicago, and Boston. Soon after, it expanded to Canada. More and more grocery stores participated with Instacart, which helped the company reach millions of new customers.
Epidemic
In 2020, the COVID-19 pandemic changed the way people shop. Suddenly, grocery delivery became more important than before. Instacart saw the order skyrocket.
To meet the demand, the company hired hundreds of thousands of new shopkeepers. For many families, Instacart became a lifeline when it was not safe to leave the house. The moment propelled Instacart to the top of the grocery delivery market and established it as a household name.
Go public
In 2023, Estacart made another significant step on the stock market, listed under the symbol CART. The company raised approximately $660 million through its initial public offering (IPO). Although its value was less than that of some earlier investors, it was still demonstrated that Instacart became one of the largest players in grocery delivery.
Beyond delivery
Instacart is no longer about bringing grocery items to your door. It is also becoming a technology company for grocery stores.
For example, Instacart bought a company called Caper AI, which makes smart shopping carts. These carts scan the items you shop for, so you can avoid long checkout lines. Instacart is also developing new technology to assist supermarkets with online sales, advertising, and data tools.
This growth shows that Instacart is planning for the future, both for its customers and grocery stores.
Why did InstaCart succeed?
Instacart’s success can be explained in some simple ways:
- It solved a real problem that people had by saving time and effort in grocery purchases.
- It utilized a light, flexible model instead of incurring expenses on trucks and warehouses.
- It continued to grow city by city, rather than all at once, at a very rapid pace.
- It took advantage of a big opportunity during the epidemic.
- It expanded beyond delivery, offering technology solutions for grocery stores.
Final Thoughts
Instalcart’s story is an excellent example of how a small idea can grow into a Billion-dollar company. It began with a person frustrated about buying groceries. Today, it helps provide food to millions of people and offers new technology to grocery chains.
Instacart suggests that with the right mix of time, creativity, and problem-solving, a startup can change the way an entire industry works. From a single self-run distribution in San Francisco to a powerful presence in North America, Instacart’s journey proves that everyday problems can give rise to significant business opportunities.
