It also returned the gratuity option back to the checkout screen and raised the default value from 0% to 5%. It originally offered an optional 10% service fee that went directly to Instacart that could be turned off. In April 2018, Instacart made a few additional changes to its pay service by instituting a mandatory 5% service fee on all orders. In addition, customers were often charged for service fees that were supposed to be waived. In February 2018, Instacart withheld tips given by customers to shoppers, blaming a software bug. In January 2018, the company acquired Toronto-based Unata, a white-label platform for grocers, for $65 million. Instacart claimed that the strike had no impact on its operations. That same month, some Instacart workers participated in a strike action, alleging wages as low as $1 an hour. ![]() In November 2017, the company expanded to Canada by announcing a partnership with Loblaw Companies to begin delivery from select locations in Toronto and Vancouver. The same year, Instacart raised $400 million in funding at a valuation of $3.4 billion. The suit, filed in March 2015, alleged 18 violations, including improper tip pooling and failure to reimburse workers for business expenses. In March 2017, Instacart agreed to pay $4.6 million to settle a class action settlement stemming from the alleged misclassification of its personal shoppers as independent contractors. Backlash against the policy from customers and some shoppers forced the company to reinstate the option only weeks later with modifications that placed the tip under the service fee section on a separate page. In November 2016, the company changed its policy and removed the option to leave a gratuity in exchange for a service fee that would be used to pay workers instead. In October 2016, it announced the expansion of coverage areas in Orange County, California, and Minneapolis. In September 2016, the company announced an expansion to its zone on the north side of Chicago. It introduced a new policy around June allowing some shoppers to choose to be part-time employees, starting with Chicago and Boston and extending its offer to shoppers in Atlanta, Miami, and Washington, D.C. By April 2015, the firm had about 200 employees. ![]() Within a year, Instacart began offering an annual membership service called Instacart Express. Instacart originally launched in San Francisco. ![]() He tried building an ad network for social gaming companies, and developing a social network specifically for lawyers, among other start-ups. Before founding Instacart, Apoorva had tried to start at least 20 other services. He left Amazon in 2010 to attempt to start his own business. Apoorva previously worked at BlackBerry, Qualcomm, and then Amazon as a supply chain engineer, where he developed fulfillment systems to move packages from Amazon’s warehouses to customers’ homes. In 2013, Mehta was included on the Forbes 30 Under 30 list. He was a participant in Y Combinator’s Summer 2012 batch, which eventually led to the creation of Instacart. He studied engineering at the University of Waterloo and graduated in 2008. Apoorva was born in India and moved with his family to Canada in 2000. Instacart was founded in 2012 by entrepreneur Apoorva Mehta, a former employee.
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