Online grocery delivery startup Instacart gets $220 million infusion

New York -- The fast-growing online grocery delivery startup Instacart confirmed it has raised $220 million in a funding round led by the venture capital firm Kleiner Perkins Caufield & Byers. This latest round of funding values the San Francisco-based company, founded in 2012, at a whopping $2 billion, according to various reports.



Using the Instagram mobile app or website, consumers can order groceries from their local participating stores, which Whole Foods Market and Safeway, with the order delivered within one or two hours. The goods are delivered by independent contractors who, similar to Uber, use their own personal cars. The service is currently available in some 15 cities.



Instacart said the funding will be used to expand into new geographical areas and eventually into new product categories.