Reuters reported earlier this week that Instacart, the online grocery delivery company, is preparing for an initial public offering valued at about $30 billion. The report states that Instacart has engaged with Goldman Sachs to lead the IPO, which could be launched early next year.
The IPO comes after California voters approved Proposition 22, which reaffirms the independent contractor status of “gig economy” workers like drivers (Uber, Lyft) and delivery personnel (Instacart, DoorDash, etc.). The vote prevents a bill from moving forward that would have classified these workers as employees who are entitled to full benefits and labor protections.
According to Instacart, the company’s valuation rose to $17.7 billion last month after a $200 million round of funding led by two current investors.
Instacart offers its online, delivery and pickup services in more than 5,500 North American cities, reaching over 85% of U.S. households and more than 70% of Canadian households. Since March, it has launched or expanded with about 150 retailers and introduced delivery at more than 8,000 stores and pickup at over 1,500 stores. Instacart currently has about 750,000 personal shoppers.
In the last year the company has expanded beyond grocery through partnerships with Walmart, Petco, CVS, Rite Aid, Staples, Big Lots, Bed Bath & Beyond, Sephora and 7-Eleven, among others.
