- As Amazon has ramped up its Whole Foods grocery delivery service to 48 cities across the U.S., a common narrative has followed: The Seattle e-commerce giant will dominate in the grocery industry as it has done in other categories of online retail.
- But some investors continue to bet that there’s room for at least one other nationwide provider in the fast-growing grocery delivery sector: Instacart, which has raised a new $600 million round of funding that values the startup at $7.6 billion.
- The new financing and valuation — led by the hedge fund D1 Capital Partners — comes just six months after Instacart closed a $350 million investment that valued it at just $4.35 billion.
- In Instacart’s case, it’s by being the chief ally to brick-and-mortar retailers in a $1 trillion industry where e-commerce sales are growing 29 percent year-over-year, but still account for no more than 5 percent of total sales.
Jason Del Rey / ReCode - 1 year ago