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Instacart plans to use its new cash to support shoppers and partners and expand initiatives in advertising and enterprise.
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The COVID-19 pandemic created a “massive shift” in the grocery industry space and it will change the importance of on-demand services like Instacart offers, the company said in a press release.
“Overnight, Instacart became an essential service for millions of families across North America,” the company said.
Instacart last raised funds in 2018 when it was valued at $8 billion.
Instacart’s new capital raise comes at a time when its market share of the grocery pickup/delivery space rose from 30% in February to 55% by the end of May, according to research firm Second Measure.
However, some analysts are concerned the recent surge in demand could reverse course as more regions continue opening up their economies, according to CNBC.
The timing of Instacart’s funding also follows growing unrest from its drivers who pressured Instacart to provide added protection and benefits that full-time essential workers are entitled to, such as health insurance.
Instacart had to hire 300,000 new workers between March and April to address surging demand and the company needs to still hire another 250,000 more.
Instacart’s CFO is Sagar Sanghvi, who was promoted to the role in August 2019.
This story originally appeared on Benzinga.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
