Every On-demand Startup Needs to Learn These 3 Lessons From Instacart, a San Francisco-based Grocery Delivery Service

This blog is for every on-demand startup, looking for surefire ways to boost their business models, in terms of, on-demand grocery app. We’ve rounded up three lessons, which will help you to create a successful grocery delivery apps like Instacart.

With the emergence of the on-demand solution, grocery shopping is never going to be the same again. Today, numerous grocery service providers are already in the marketplace. But according to the Forbes report, “Instacart has become America’s most promising companies list”.

Launched back in 2012, Instacart is a grocery delivery startup, which is popular to deliver in as short as an hour. According to the latest news from Crunchbase, “Instacart has secured $271 million in Series F round of funding, led by Tiger Global Management at a total valuation of $1.9 billion”.

Additionally, in just two and a half years, Instacart has rocked up to the Silicon Valley money list with its 1-hour grocery delivery service. That’s why this startup has placed among one of America’s most promising companies list.

Facts and Funds Raised by Instacart As of Now

  • Total funding amount: $1.9B as per the data from Crunchbase
  • Total App installs: 1M to 5M, as per the latest data from Similar Web
  • Instacart ranks #12 in the United States.
  • Funds raised in the first 3 years of the emergence of Instacart can be seen in the below image.
  • According to the latest news from TechCrunch, Instacart has secured its place in the list of Top 10 largest US venture rounds of 2018. The company has raised VC every year since it completed the Y Combinator startup accelerator in 2012, and 2018 was no different. In October, the service brought in $600 million at a $7.6 billion valuation in a round led by D1 Capital Partners and later tacked on another $271 million. The total amount bringing to $871 million.


  • Instacart has raised $220M in Series C funding in 2014.


  • In the below image, you can see the latest data of mobile app ranking of Instacart from SimilarWeb.


  • Talking about Instacart’s alcohol delivery, which is now available in 14 states, including California, Florida, North Carolina, Ohio, Texas, Virginia, Washington, Washington, D.C., Massachusetts, Minnesota, Missouri, and Kentucky.

So, if you are also planning to establish a successful on-demand grocery startup, let’s check out the below-mentioned lessons that learned from on-demand grocery startup, Instacart. These lessons can help you to know how you can establish a successful on-demand grocery platform.

3 Lessons Learned from Instacart, a San Francisco-based Grocery Delivery Service

#1. Analyzed The Key Problems and Provided With The Appropriate Solutions

A nimble grocery on-demand service, Instacart analyzed the pain points of people while they order grocery. There was a delivery issue, which was faced by many shoppers in the previous times, but Instacart has recognized this problem and worked on it, and provide optimal solutions to users.

To deliver groceries within one hour to customer’s place was another biggest challenge. And, this was first implemented by Instacart. However, there were numerous stores already available for customers, where they could buy groceries, but Instacart provides instant delivery services to their customers.

In order to reduce the delivery time, Instacart provides facility to customers, in which they can order groceries by choosing one or more stores nearby via a mobile app.

Instacart has expanded its delivery zone to a total of 14 areas. Also, the company has added stores in the area in order to serve better for users by providing a seamless online grocery experience.

By providing this useful facility, the user is now able to get grocery in minimal time, which was not possible earlier.


#2. Solved Common Problems Like Wrong Item Delivery, and Out of Stock Items

Have you ever got the wrong product as a customer while shopping online? A lot of customers receive the wrong product when they shop for grocery online. So, Instacart has hired a dedicated support team for a particular job to handle all these issues.

This team makes sure customers would receive the right product. In any case, if the customer receives a wrong product, then he/she can directly contact the Instacart team through a phone call or email.

Talking about, the ‘out of stock items’ means that, when the items in the app go out of stock. To handle this problem, on-demand grocery delivery apps like Instacart allowed their customers to add notes in the below of ‘out-of-stock’ product. By doing so, such on-demand grocery app can readily fix the problem, which can make hurdles in customers’ shopping experience.

Within the app, Instacart added ‘out of stock’ button on such products for the reference of customers.


#3. Provided With Some Salient Features

Providing users with unique and salient features always play an important role to grab attention from the maximum number of users. Therefore, the third lesson is centralized on the basis of what unique as well as useful features that you can provide your users. If you’re planning to create an Instacart clone app, then you need to check out the following salient features:

  • There is a collection of over 300,000 items from numerous stores, which enable customers to place orders from their favorite stores. Or, users can mix items from different stores into one order.


  • Instacart is widely available in major areas of the United States such as San Jose, New York, Brooklyn, Washington DC, Austin, Los Angeles, Boston, and SF Bay Area as you can see in the below-given graph.


Long Story, Short

With a vast network of grocery chains and retailers and quality customer experience, a grocery app can achieve success like Instacart. Additionally, in this way, you, as a startup, can boost your business model after considering above mentioned lessons in your mind and try to deliver solution to your audience problem and serve them better.

Validate Your On-demand Grocery App Development Idea

No matter whether you are a startup or an entrepreneur, all aforementioned lessons by Instacart shopper app can surely help you to broaden your vision and provide your customers with an outstanding service like Instacart.

With the constantly increasing demand for on-demand grocery services, you can also have your own on-demand grocery apps like Instacart. If you have any grocery app idea like Instacart, you make sure to validate your idea with any android apps development company.

In case, if you still have any query related to on-demand grocery delivery apps such as:

  • How this grocery app can help you to serve your customers?
  • How much does it cost to create an Uber delivery app like Instacart?
  • What is the development cost of developing an app like Uber for grocery delivery?
  • How long does it take to make an app like Instacart?
  • How is it important to create an MVP (Minimum Viable Product) of an app?

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