Instacart Review: iOS & Android Review Instacart Mobile –

– Thank you for visiting Angel Kings where we show you how to invest in America’s next top startups. – Ross, tell me why Instacart
is such a good investement. – What I like about Instacart,
and what we look for when we invest in startups at Angel
Kings, is first the people. This is a founding team that
has the perfect combination of a hacker, a hustler,
and social media maven. It’s a great founding team
and the team recognized early on as they were building Instacart that instant delivery
had been done before. So instant delivery goes back to the 90’s with pre-startup boom and bust. They realized with easier ability to scale the product at a lower cost, they’d be able to
provide the same service. What I mean by that is the startup cost, or to lauch something like
Instacart back in 1998, 1999, would have cost millions
of dollars per month. You would go through a lot
of your money a lot faster. Nowadays, with Amazon web services and other cloud-based storage platforms, you’re able to launch for a
much more affordable cost. The founding team was
agile. They’re smart. They had the perfect combination and they recognized that
times were different. – Tell me about the
product. How does it work? – One of the things we look for in our four point formula is also the product. So the product itself
is part of our formula. The product has to be something that we imagine will be
around 20 years from now, and the product being related to groceries and the ability to buy
groceries on demand, we imagine that people
are still going to be buying groceries 20 years from now. It’s one of these things, if you’re going to invest in a startup, we also recommend that you
use the product before. I’ve used Instacart. It’s a simple application
that you download to your mobile phone and
by a click of a button, storing your credit card, you can order groceries
in a nearby location. – Perfect! Is there a need? Is there a
community behind this product? – The third part of our formula
at Angel Kings is execution, which gets to the heart of a need and whether there’s a community of people that evangelize for your product, so it saves your marketing cost. Every time Instacart launches, they get thousands of signups
because people need groceries and frankly we live in
a people economy where people not only want to earn money as a delivery person with
some of their free time, but people can be lazy. Instacart at it’s core is tapping into this sort of laziness
of the new economy where “I don’t want to go to the grocery store. I’d rather have it delivered
to me at a premium.” There is a need. I’d say that’s also a want being that it’s not like people can’t get up and go to the grocery stores. The community is pretty
big and, for example, in DC where we’re based at Angel Kings, within a month they’ve
received thousands of signups, which if you see around
10% month to month growth, you know you have that
hockey stick, viral growth for a real platform and
a startup that could turn into a multi-billion
dollar operation. – When did this company actually start? – They started about
three to four years ago and they initially
launched in San Francisco, the Palo Alto region. Like I said before, Instant
delivery, or grocery delivery, had been done or attempted to have been done during the 90’s, they thought hard about,
” What is our scale? “What is our cost and how can
we deliver and make a profit?” This is one of the
startups in our rankings that has actually hit, or
at least the word is that they’re getting closer to profitability. Look at Uber. That’s another example of a
company that’s profitable. It’s definitely a billion dollar startup. – Tell me about the timing.
When did they hit the market? – The timing in the last
part of our formula is who are the competitors and how, as an Angel investor, you
can get your money back. Looking at the timing for Instacart, there have been competitors
recently that popped up. They’ve got Amazon now that’s doing same day delivery in some cities. You’ve got Google as Google
Local and Google Express, or I believe it’s called Google
Now, that’s doing delivery. But they’re timing was perfect. This was about two to three years ago where they hit big in San Francisco, hit up a couple more markets, they’ve hit DC which is where we’re based. The timing was perfect because Amazon has pulled off a lot of PR
stunts with drones on delivery, but never have we seen a
company like Instacart before that’s hit so rapidly,
hit that scalability, and really’ve given Google
Now a run for their money as well as Amazon, who’s
no doubt looking at them as an acquisition target. – Thank you Ross for
talking about this startup and if you have any further question, visit If you want to learn more about investing visit

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