Instacart Announces Nationwide Expansion

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Instacart Announces Nationwide Expansion

04/28/2017

Third-party grocery delivery service Instacart has announced its entrance into four new markets, as well as its upcoming entrance into and expansion in several more, furthering progress to its goal of being able to deliver groceries to 80 percent of U.S. households by next year.

This week, the San Francisco-based service is moving into Detroit; Columbus, Ohio; Las Vegas; and Rio Grande Valley in Texas. Over the next few weeks, it will launch into new markets and expand current service in states such as Texas, Florida, the Carolinas, Kentucky and Tennessee. It also will expand to more cities in Michigan and Ohio.

“Expanding a service like ours is not easy,” Instacart stated on its website. “For each new market we enter, we hire hundreds of shoppers to make sure customers can order when they want. We also partner with local retailers to give our customers the ability to order from their favorite grocery stores. We’ve spent the last few years expanding judiciously and staying laser-focused on the efficiency and economics of our business model –  to make sure that it could someday support a national service.”

In addition to its expansion, Instacart will offer a free year of Instacart Express membership in Texas and other major new Midwestern markets. The service will allow customers to receive unlimited deliveries for one year without paying a single delivery fee over the period. Traditionally, Instacart Express costs $99 annually for free one-hour, two-hour and scheduled deliveries on orders above $35.

The news followed Instacart's announcement in early March that it raised $400 million in a Series D financing round led by Sequoia Capital. The delivery service has expanded from 18 to 35 markets since January 2016, and plans to expand its geographic footprint to 60 or more markets in 2017.

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