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Report: Instacart planning $30 billion IPO

California’s approval of Proposition 22 reignites buzz about public offering

Russell Redman

November 16, 2020

2 Min Read
Instacart-Personal_Shopper-Bag_0.png
Instacart has tapped investment firm Goldman Sachs to lead the IPO, which could be launched in early 2021, according to Reuters.Instacart

Online grocery delivery giant Instacart reportedly is readying an initial public offering valued at about $30 billion.

San Francisco-based Instacart has enlisted investment bank Goldman Sachs to lead the IPO, which could be launched in early 2021, Reuters reported, citing anonymous sources.

The IPO is being stepped up, Reuters said, after California voters on Election Day approved Proposition 22. The ballot measure, supported by companies such as Uber, Lyft and DoorDash, reaffirms the independent contractor status of app-based “gig economy” workers — such as drivers and delivery personnel — and essentially quashes California Assembly Bill 5, which would have classified them as employees receiving full benefits and labor protections.

Instacart declined to comment on reports about an upcoming IPO.

Last month, Instacart said its valuation rose to $17.7 billion after a $200 million round of funding led by current investors Valiant Peregrine Fund and D1 Capital Partners. At the time, Danny Karubian, partner at the Valiant Peregrine Fund, noted that Instacart has navigated “through an operating environment unlike any we’ve ever seen.”

“We are excited to increase our investment in Instacart as the company further establishes itself as a leader in the massive North American online grocery space,” Karubian added.

Related:Aldi, Instacart team on EBT integration for SNAP online grocery purchases

Reports of an impending Instacart IPO emerged late last week, when last-mile food delivery provider DoorDash filed for an IPO. San Francisco-based DoorDash specializes in restaurant delivery but has recently made a bigger foray into on-demand grocery delivery and delved into prescription drug delivery.

Currently, Instacart offers its online marketplace, delivery and pickup services in more than 5,500 cities across North America, reaching over 85% of U.S. households and more than 70% of Canadian households. Since March, the company has launched or expanded with roughly 150 retailers and introduced delivery at more than 8,000 stores and pickup at over 1,500 stores. And in response to surging demand during the COVID-19 pandemic, the company has enlarged its base of personal shoppers by more than 500,000 to a total of over 750,000.

Instacart also has continued to expand retail partner base beyond grocery. In September, the company made forays into three new retail markets — home goods, specialty beauty care and convenience stores — through partnerships with Bed Bath & Beyond, Sephora and 7-Eleven. Previously, Instacart entered markets such as off-price/closeout retail with Big Lots, office retail with Staples U.S. and Canada, vitamins and supplements retail with Vitamin Shoppe and prescription delivery with Costco Wholesale. Instacart also delivers household decor from Walmart, pet care supplies from Petco, and over-the-counter medicines and health care products from CVS Pharmacy and Rite Aid.

Related:Instacart bags $200 million in latest financing round

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About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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