Published On: Wed, Oct 9th, 2013

Instacart Expands Service to Chicago with New Partnership Model


Instacart, a Bay Area grocery delivery service aimed at millennial social media influencers, announced today that it has partnered with Trader Joes, the Chicago Bears and Rahm Emanuel to expand its service to the greater Chicago area.

Though the company, which bills itself as an Amazon-style ecommerce platform without the low prices, has no formal partnerships in place, a spokesperson told SVChronicle by phone that many of their employees have either shopped at Trader Joes, seen da Bears on TV or cursed out their staff on numerous occasions.

CEO, Apoorva Mehta later stated via email “Our initial target market way back in 2012 was the 1 percent sub-segment, but we discovered that there is an even more lucrative and physically attractive subset – the millennial children of the 1 percent that are working in social media. They are even more willing to pay a modest 30-40% markup for groceries on top of a nominal delivery charge just to be associated with the Instacart brand.” Mehta went on to say that “When you add in our SAU (simulated active users) growth of 35% a month, it becomes a situation where investors like Sequoia Capital simply can’t say no, regardless of any glitches they may have had in the past with online groceries.”

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Instacart Expands Service to Chicago with New Partnership Model