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Main article: Instacart

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Topics from 1 to 10 | in all: 118

Activist gig workers seek to form nonprofit to support fellow workers

23:17 | 10 February

Vanessa Bain (pictured above), a well-known gig worker-activist, has teamed up with fellow gig worker-activist Sarah Clarke (pseudonym) to form the Gig Workers Collective. It’s early days for the organization, which is a pending 501(c)(3) organization, but its ambitions are big.

“We want to be the first responders that, whenever gig workers find out there is a pay cut or some type of issue, they’ll feel comfortable coming to us,” Clarke told TechCrunch.

The plan is to continue fighting for fair pay and better treatment for gig workers, whether they shop for Instacart, drive for Uber or Lyft, or deliver for Postmates and DoorDash. Through the organization, Clarke hopes to be able to help other gig workers effectively organize, file grievances and advocate for themselves.

“Vanessa and I have been organizing for four years,” Clarke said. “We’ve been doing it on the side while also maintaining working 40 hours a week gig jobs. If we focus solely on organizing, we can accomplish so much more.”

Over the years, Bain and Clarke have led a number of campaigns. More recently, they led a nationwide campaign that entailed six days of action in protest of Instacart. Last year, they also went on strike for 72 hours in demand of a better tip and fee structure.

Right now, the organization has a board of five gig workers and six workers who are contributing to the organization.

“Assuming we get funding, we can pay for everything they do,” Clarke said. “Right now, everything we pay for is out of pocket. With proper funding, we can pay workers who are working on the campaign.”

The next steps for the young organization are to try to get funding. However, Clarke said they will be selective about who they take funding from in order to ensure those funders don’t try to exert too much control.

She said, “the workers will always need to come first.”

 


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Instacart gets into ready-to-eat food deliveries with build your own sub service

12:52 | 28 January

Grocery picking service Instacart is dabbling with on-demand food delivery, announcing the launch in Florida of a pre-made meals delivery option that shoppers can tag onto a bigger supermarket order.

It’s partnering with US supermarket chain Publix for the initial launch of Instacart Meals — offering what it dubs a “digital deli counter” where app users can build their own sub and have it picked up and delivered alongside a grocery order.

“We know that when customers grocery shop, they’re thinking about both the food they need for the week in addition to what’s for dinner that night,” it writes in a blog post announcing Instacart Meals.

It says the service will be rolling out to Publix locations across Florida “in the coming weeks”, and to “nearly all Publix stores across the Southeast in the months ahead”.

“We see the highest volume of orders placed on the Instacart marketplace between 2 and 4pm and at less than half the price of an average fast-casual food order, made-to-order grocery meals offer access to a fresh, easy and more affordable option when life is hectic and dinner is soon,” it adds.

Instacart says the meals product integrates with existing grocery order management systems to generate what’s touted as “precise preparation and counter pickup windows at the end of the Instacart shopper’s shopping route”.

“This ensures that the customer’s sandwich gets from the store to their door as fresh as possible,” it adds.

Although quite how long a ready-to-eat sandwich might end up waiting around getting soggy before it’s picked up and delivered to the customer as lunch is one question. (As fresh “as possible” is a pretty open-ended promise.)

It’s notable that Instacart is touting the premade meals service as a price competitive option vs an “average fast-casual food” — presumably such as those a consumer might order via an on-demand food delivery app such as PostMates or Uber Eats.

So “more affordable” seems likely to translate to ‘not as quickly as those kind of services’ — but, hey, you’re getting cheaper eats.

Instacart also makes a point of noting that the pre-made meals feature will automatically apply any relevant deals vis-a-vis the rest of the shopping cart — so that app users will get “all applicable combo options and discounts”, just as an in store shopper would.

The move is the latest sign of the category overlap going on between on-demand food delivery and grocery delivery services, as startups in the space search for ways to cross-sell existing users on additional products that can boost the unit economics, per delivery.

Spain’s Glovo, for example, has expanded from on-demand food delivery into running its own dark supermarkets — where it stocks and sells (via app only) a limited selection of groceries which can be tagged onto a ready-to-eat food order. Though it’s also focused on very fast delivery as the differentiating factor for this ‘Super Glovo’ service, and does partner with select supermarkets for larger grocery deliveries.

Instacart, meanwhile, looks to be hoping to gobble some of the lunch of on-demand food delivery app rivals by being able to undercut them on price, as the meals are coming from supermarket deli counters not a standalone fast food brand. So speed of delivery can be handled as a secondary consideration.

Instacart Meals is the latest product expansion from the company — which, in recent years, has been building out an alcohol delivery service. It is also piloting prescription deliveries with Costco in select states.

The company has a network of 350 partner retailers operating 25,000+ stores across more than 5,500 cities in the U.S. and Canada — from which it could seek to build out the pre-made food offer.

Earlier this month Instacart announced upgraded pick-up options.  The business has come under fire for how it compensates the army of professional shoppers who do picking and delivering of orders.

 


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Is Instacart’s wider rollout of Pickup an attempt to sidestep labor laws?

00:19 | 15 January

Earlier today, Instacart more widely rolled out its Pickup product, which enables customers to retrieve groceries directly from stores. The move comes just a day after Instacart shoppers unveiled their latest action to #DeleteInstacart, another step in the ongoing series of protests against the grocery startup’s wage and tipping practices.

Next Monday, Instacart workers are asking customers and the general public to tweet at Instacart, telling the company they will delete Instacart until the company meets their demands. They wrote:

We have fought for fair pay, but Instacart continues to lower it. This current protest only has one small demand — to raise the app’s default tip amount back to 10%. This is the same default setting Instacart had originally, but the company has repeatedly lowered it (as well as resorted to outright theft) to take it away from us. Combined with their recent bonus-cutting act of retaliation, workers are now bleeding out of both sides — our pay is too low AND the default tip amount is too low.

In light of a new California gig worker protections law, which Instacart opposes, the greater push into pickup services could be a way for the company to beef up its argument that gig workers are free from the control of Instacart. If so, Instacart’s efforts line up with Uber’s recent steps to ensure its drivers will be able to remain independent contractors.

 


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Instacart upgrades its pickup service with new features, adds alcohol pickup option

18:04 | 14 January

Instacart announced today a series of new features for its Pickup service, as well as the appointment of a new General Manager, Sarah Mastrorocco, to lead the Instacart Pickup product and team. The grocery pickup service has been steadily growing alongside Instacart delivery, having tripled the number of states and doubled the number of grocery partners offering a pickup option in 2019, the company says. Today, Instacart is upgrading Pickup with the addition of a new digital storefronts feature, plus better tools for managing pickups, including alerts to signal the store you’re on the way, better mapping tools, and more. Instacart Pickup also expanded to include alcohol pickup across more than 20 retail partners.

These include Aldi, BevMo!, Publix, Save Mart, Sprouts and Wegmans, among others.

In total, Instacart Pickup reaches more than 50 grocery partners, like Food Lion, Gelson’s, Publix, Price Chopper, Schnucks, Shop ‘n Save, The Fresh Market, Wegmans and more.

To make pickups easier, Instacart is introducing a single digital storefront for each grocer on its platform, allowing customers to toggle between delivery and pickup options in order to see the current inventory by store and compare time windows for both delivery and pickup services.

It’s also adding ways to select a pickup option that’s convenient for their route that day since your default store may not be the most convenient for those times when you’re driving home from work or errands, and just want to head somewhere nearby. When you’re ready to drive to the store, Instacart will now allow you to use the mapping and navigation app of your choice. And when you’re approaching the store, location-based reminders will alert store staff you’re on the way. This can speed up the handoff time once you arrive, and is similar to the feature Target uses for its Drive Up curbside service.

Another new option allows you to share order details with friends and family so they can pick up orders on your behalf.

As Instacat Pickup grows, Instacart is putting a new GM in place to run the business.

Mastrorocco, who joined Instacart six years ago as the first member of the Business Development team, has worked across positions including in Catalog and Account Management and, most recently, as VP of Business Development. Before Instacart, she worked with PepsiCo’s Global Operations Group and was on Frito-Lay North America’s Strategy and M&A team. In her new role, she will work with Instacart partners to oversee and scale the Pickup operation.

“2020 is the year of pickup. For our retail partners, we’ve seen Instacart Pickup become a gateway to growth in a margin-thin industry. Our pickup product is also becoming a significant revenue contributor for our retail partners, growing customer basket size by an average of 15% and accounting for an average of 20% of a retailer’s total Instacart store sales,” said Nilam Ganenthiran, President of Instacart, in a statement.

“Instacart’s broader business continues to grow at an incredible clip with pickup as our fastest-growing product. With the completed rollout of the new Instacart Pickup and the appointment of Sarah as our new GM, we’re laying the groundwork now to prepare for another year of triple-digit growth. By year-end, we expect to have the largest pickup retail footprint in North America and, in the coming years, to grow Instacart Pickup into a multi-billion dollar business,” he added.

The focus on Instacart’s plans to grow its pickup business comes at a time when some of its delivery staff are organizing to fight back against lowered pay, including the reduction of the default tip from 10% to 5% in 2018. Now, they’re preparing a new national protest with just one demand — to raise the default tip back to 10%.

On Monday, Jan. 19, the workers will be asking customers to tweet Instacart with the #DeleteInstacart hashtag, then email the company the following day. The protest is one of many Instacart shoppers have led over the past few years, as the company has tried to balance building a sustainable business with fair pay. Insacart has also previously faced a class-action lawsuit over wages and tips, as well as a tipping controversy where Instacart included tips in its base pay for shoppers.

Instacart Pickup is not without its rivals. In addition to Target’s Drive Up for everyday items, Instacart Pickup competes with Walmart Grocery Pickup and, in some markets, Amazon’s Whole Foods. Some chains offer their own pickup service, as well.

 

 

 


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The year of the gig worker uprising

20:17 | 26 December

2019 was a momentous year for gig workers. While the likes of Uber, Lyft, Instacart and DoorDash rely on these workers for their respective core services, the pay does not match how much they’re worth — which is a lot. It’s this issue that lies at the root of gig workers’ demands.

“This past year has been a pivotal year not only for gig workers but for workers across the tech economy,” Gig Workers Rising co-organizer Lauren Casey told TechCrunch. “That unto itself is a win — to see mass mobilization of workers across apps, across sectors and across positions.”

Instacart workers kicked off the year with a class-action lawsuit over wages and tips, and spoke out against Instacart’s practice of subsidizing wages with tips from customers. The suit alleged Instacart “intentionally and maliciously misappropriated gratuities in order to pay plaintiff’s wages even though Instacart maintained that 100 percent of customer tips went directly to shoppers. Based on this representation, Instacart knew customers would believe their tips were being given to shoppers in addition to wages, not to supplement wages entirely.”

Shortly after that lawsuit was filed, Instacart CEO Apoorva Mehta apologized and said the company would take steps to ensure tips were counted separately. Following Instacart’s capitulation, DoorDash and Amazon eventually followed suit and stopped offsetting worker wages with tips.

While Instacart now pays workers their full wages plus 100% of tips, workers take issue with the fact that Instacart’s suggested default tip decreased from 10% to just 5%.

In October, Instacart shoppers went on strike for 72 hours across the nation. Instacart responded by getting rid of a $3 quality bonus. This month, Instacart shoppers are engaging in six days of actions in protest of the company, including filing a complaint with the U.S. Department of Labor as well as filing a wage claim.

“We’re still just trying to get this one tiny thing: double the default tip percentage,” Instacart shopper and protest organizer Sarah (pseudonym) previously told TechCrunch. “We’ve tried endlessly to get them to raise the base guarantee pay. But we feel like, fine, at least give us the higher default tip.”

Meanwhile, DoorDash still has yet to offer back pay to workers who were subjected to the misappropriating of tips. In protest of Instacart, DoorDash and Postmates, labor group Working Washington delivered bags of peanuts their respective offices as a symbol of the pay workers receive.

“This was the year gig workers built a movement that seized control of the future of work from the tech lobbyists and venture capitalists,” Sage Wilson of Working Washington told TechCrunch.

 


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Instacart shoppers plan a series of actions in protest of company’s wage practices

17:00 | 9 December

Instacart shoppers are continuing to hold the grocery startup accountable with their latest set of actions. Kicking off next Monday, Instacart shoppers plan to take one action per day, for six days in protest of Instacart.

“We’re still just trying to get this one tiny thing: double the default tip percentage,” Instacart shopper and protest organizer Sarah (pseudonym) told TechCrunch. “We’ve tried endlessly to get them to raise the base guarantee pay. But we feel like, fine, at least give us the higher default tip.”

Instacart currently suggests a default tip of 5% but workers want Instacart to increase it to 10%. Next week, Instacart shoppers plan to take a number of actions. including filing a complaint with the U.S. Department of Labor as well as filing a wage claim.

Sarah, who has been an Instacart shopper for four years in California, says shoppers have become furious because it’s clear Instacart does not respect them.

“We’re trying to continuously show them that we do have power,” Sarah said. “I believe this protest of seven days is going to be the most powerful thing we’ve ever done because it has the ability to really fuck them up.”

The full schedule is as follows:

  • December 16: File complaint with the U.S. Department of Labor, asking the department to audit Instacart’s previous practice of misappropriating tips
  • December 17: Contact federal legislators and ask them to hold Instacart accountable to minimum wage laws and more
  • December 18: File a wage claim regarding Instacart’s classification of shoppers as 1099 independent contractors
  • December 19: Hand-deliver binders, filled with a letter and personal notes from workers, to CEOs of six partner stores. Workers want partner stores to help ensure minimum standards and earnings.
  • December 20: Contact the Occupational Safety and Health Administration regarding how Instacart shoppers sometimes have to fulfill heavy orders, which can lead to injuries on the job.
  • December 21: Contact state legislators

This comes after Instacart shoppers organized a nationwide protest where they went on strike for 72 hours in demand of a better tip and fee structure. Following that protest, Instacart got rid of the $3 quality bonus.

“When we did the walk-off, that required people to take off several days from work,” Sarah said. “We don’t want people to miss out on money so we’re doing something that will take less time.”

So far, more than 300 workers have signed up to participate in the seven days of action. This upcoming action follows years’ worth of protesting. Back in 2016, Instacart removed the option to tip in favor of guaranteeing its workers higher delivery commissions. About a month later, following pressure from its workers, the company reintroduced tipping. Then, in April 2018, Instacart began suggesting a 5% default tip and reduced its service fee from a 10% waivable fee to a 5% fixed fee.

Instacart has previously said it’s committed to providing its shoppers with an earnings structure that offers upfront pay and guaranteed minimums.

“We respect the voices of all shoppers and take the feedback of our community very seriously,” an Instacart spokesperson previously said in a statement. “We will continue to listen and engage with shoppers to improve their experience.”

 


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Instacart is under fire for how it compensates shoppers

19:18 | 12 November

The Tech Workers Coalition and Gig Workers Rising are outside the company’s headquarters in San Francisco this morning in support of shoppers, who demand Instacart reinstate the $3 quality bonus, implement a 10% default tip and eliminate its service fees.

Last week, Instacart got rid of the $3 quality bonus shortly after thousands of shoppers participated in a 72-hour strike where workers demanded a better tip and fee structure. By protesting outside of Instacart’s SF HQ, shoppers are hoping to reach employees and get them on their side.

“We’re asking that Instacart employees urge management to reverse this decision,” organizers wrote in a handout…”As a worker who builds the product, you have a say over how it’s used.”

Back in 2016, Instacart removed the option to tip in favor of guaranteeing its workers higher delivery commissions. About a month later, following pressure from its workers, the company reintroduced tipping. Then, in April 2018, Instacart began suggesting a 5% default tip and reduced its service fee from a 10% waivable fee to a 5% fixed fee.

“We take the feedback of the shopper community very seriously and remain committed to listening to and using that feedback to improve their experience,” an Instacart spokesperson told TechCrunch last month.

The protest was on the heels of a class-action lawsuit over wages and tips, as well as a tipping debacle where Instacart included tips in its base pay for shoppers. Instacart, however, has since stopped that practice and provided shoppers with back pay. Though, Fast Company recently reported that Instacart delivery drivers’ tips are mysteriously decreasing.

Following Instacart’s post-protest move to eliminate the $3 quality bonus, #DeleteInstacart and #BoycottInstacart started making waves on Twitter. California Assemblyperson Lorena Gonzalez, the one who authored gig worker bill AB 5, joined in.

TechCrunch has reached out to Instacart and will update this story if we hear back.

 


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Instacart shoppers are organizing a nationwide protest

20:19 | 11 October

Instacart has long been at odds with its shoppers — the people who go to the grocery store on behalf of customers. From November 3-5, thousands of Instacart shoppers plan to protest with three demands. They want Instacart to change the default tip amount to at least 10%, ditch the service fee and commit to always giving 100% of the tip to the shopper.

“We did not arrive at the 10% figure arbitrarily, rather this is what the default tip amount was back when I and many others started working for Instacart,” Vanessa Bain, an Instacart shopper wrote on Medium this week. “We are simply demanding the restoration of what was originally promised.”

Back in 2016, Instacart removed the option to tip in favor of guaranteeing its workers higher delivery commissions. About a month later, following pressure from its workers, the company reintroduced tipping. Then, in April 2018, Instacart began suggesting a 5% default tip and reduced its service fee from a 10% waivable fee to a 5% fixed fee.

“We take the feedback of the shopper community very seriously and remain committed to listening to and using that feedback to improve their experience,” an Instacart spokesperson told TechCrunch.

This protest is on the heels of a class-action lawsuit over wages and tips, as well as a tipping debacle where Instacart included tips in its base pay for shoppers. Instacart, however, has since stopped that practice and provided shoppers with back pay. Though, Fast Company recently reported that Instacart delivery drivers’ tips are mysteriously decreasing.

But it’s a new day for gig economy workers — at least in California. Last month, California Governor Gavin Newsom signed into law gig worker protections bill AB-5. This legislation will make it harder for gig economy companies to classify their workers as 1099 independent contractors when it goes into effect in January. The victory came after gig workers made their voices heard through protests and other direct actions.

What’s clear at this point is that workers are refusing to stay silent and are more than willing to advocate for themselves. Organizers of the Instacart protest

for shoppers to get involved. The more active approach would entail shoppers signing up for as many hours as possible from Nov. 3 -5, but keep letting the batches time out. The more passive approach entails not signing up for any hours at all, and not accepting any on-demand batches.

“Despite loyalty to Instacart and the customers we’ve gotten to know over the years, many of us have been forced to find other gigs to make ends meet,” Bain wrote. “But not all Shoppers are so lucky or even have the ability to be so fluid with their careers or their time. A large portion of the working body are single parents, caregivers, are disabled or have other conditions or obligations that would make getting other work difficult or impossible. Instacart is highly aware of this and weaponizes this fact against us when turning the pay dials lower and lower.”

 


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Uber to acquire grocery delivery startup Cornershop

17:09 | 11 October

Uber will acquire Cornershop, a grocery delivery startup that began life serving the Latin American market and recently shifted to offer service in Toronto, its first North American city. Uber announced on Friday that it expects that its acquisition of a majority ownership stake in Cornershop in early 2020, once it receives all the necessary regulatory sign-off.

Cornershop was founded in 2015 by Oskar Hjertonsson, Daniel Undurraga and Juan Pablo, and it’s headquartered in Chile. The company will continue to operate under that leadership in its current form for now, Uber says, and will report to a board that counts Uber leadership in the majority of its overall makeup.

Over the course of four rounds of funding, Cornershop raised $31.7 million, from investors including Accel, Jackson Square Ventures and others. The on-demand grocery company was supposed to be acquired by Walmart in a deal valued at $225 million announced in September, but that deal ultimately fell apart in June when Mexican anti-trust regulators blocked it from going through.

Meanwhile, Walmart has continued to work with Cornershop, expanding its service offerings in Toronto with the startup as recently as yesterday. Uber has previously experimented with grocery delivery, including in partnership with Walmart, and Uber CEO Dara Khosrowshahi has said that grocery delivery is a natural place for the company to expand its business given the success of Uber Eats. It’ll face competition from entrenched players including Instacart and Postmates, but Uber Eats also faced competition from much more established players at its genesis, too.

The deal is also still subject to regulatory approval, as mentioned, and that’s exactly where the planned Walmart acquisition stumbled before for Cornershop, so it’s worth keeping a close eye on this one. Still, Uber’s not making any secret of its intentions with the grocery category, so that looks likely to take shape one way or another.

 


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APIs are the next big SaaS wave

20:56 | 6 September

Daniel Levine Contributor
Daniel Levine is a partner at Accel. He joined the firm in 2010 and focuses on product-first startups aimed at consumers, developers, and bottoms-up business users.

While the software revolution started out slowly, over the past few years it’s exploded and the fastest-growing segment to-date has been the shift towards software as a service or SaaS.

SaaS has dramatically lowered the intrinsic total cost of ownership for adopting software, solved scaling challenges and taken away the burden of issues with local hardware. In short, it has allowed a business to focus primarily on just that — its business — while simultaneously reducing the burden of IT operations.

Today, SaaS adoption is increasingly ubiquitous. According to IDG’s 2018 Cloud Computing Survey, 73% of organizations have at least one application or a portion of their computing infrastructure already in the cloud. While this software explosion has created a whole range of downstream impacts, it has also caused software developers to become more and more valuable.

The increasing value of developers has meant that, like traditional SaaS buyers before them, they also better intuit the value of their time and increasingly prefer businesses that can help alleviate the hassles of procurement, integration, management, and operations. Developer needs to address those hassles are specialized.

They are looking to deeply integrate products into their own applications and to do so, they need access to an Application Programming Interface, or API. Best practices for API onboarding include technical documentation, examples, and sandbox environments to test.

APIs tend to also offer metered billing upfront. For these and other reasons, APIs are a distinct subset of SaaS.

For fast-moving developers building on a global-scale, APIs are no longer a stop-gap to the future—they’re a critical part of their strategy. Why would you dedicate precious resources to recreating something in-house that’s done better elsewhere when you can instead focus your efforts on creating a differentiated product?

Thanks to this mindset shift, APIs are on track to create another SaaS-sized impact across all industries and at a much faster pace. By exposing often complex services as simplified code, API-first products are far more extensible, easier for customers to integrate into, and have the ability to foster a greater community around potential use cases.

Screen Shot 2019 09 06 at 10.40.51 AM

Graphics courtesy of Accel

Billion-dollar businesses building APIs

Whether you realize it or not, chances are that your favorite consumer and enterprise apps—Uber, Airbnb, PayPal, and countless more—have a number of third-party APIs and developer services running in the background. Just like most modern enterprises have invested in SaaS technologies for all the above reasons, many of today’s multi-billion dollar companies have built their businesses on the backs of these scalable developer services that let them abstract everything from SMS and email to payments, location-based data, search and more.

Simultaneously, the entrepreneurs behind these API-first companies like Twilio, Segment, Scale and many others are building sustainable, independent—and big—businesses.

Valued today at over $22 billion, Stripe is the biggest independent API-first company. Stripe took off because of its initial laser-focus on the developer experience setting up and taking payments. It was even initially known as /dev/payments!

Stripe spent extra time building the right, idiomatic SDKs for each language platform and beautiful documentation. But it wasn’t just those things, they rebuilt an entire business process around being API-first.

Companies using Stripe didn’t need to fill out a PDF and set up a separate merchant account before getting started. Once sign-up was complete, users could immediately test the API with a sandbox and integrate it directly into their application. Even pricing was different.

Stripe chose to simplify pricing dramatically by starting with a single, simple price for all cards and not breaking out cards by type even though the costs for AmEx cards versus Visa can differ. Stripe also did away with a monthly minimum fee that competitors had.

Many competitors used the monthly minimum to offset the high cost of support for new customers who weren’t necessarily processing payments yet. Stripe flipped that on its head. Developers integrate Stripe earlier than they integrated payments before, and while it costs Stripe a lot in setup and support costs, it pays off in brand and loyalty.

Checkr is another excellent example of an API-first company vastly simplifying a massive yet slow-moving industry. Very little had changed over the last few decades in how businesses ran background checks on their employees and contractors, involving manual paperwork and the help of 3rd party services that spent days verifying an individual.

Checkr’s API gives companies immediate access to a variety of disparate verification sources and allows these companies to plug Checkr into their existing on-boarding and HR workflows. It’s used today by more than 10,000 businesses including Uber, Instacart, Zenefits and more.

Like Checkr and Stripe, Plaid provides a similar value prop to applications in need of banking data and connections, abstracting away banking relationships and complexities brought upon by a lack of tech in a category dominated by hundred-year-old banks. Plaid has shown an incredible ramp these past three years, from closing a $12 million Series A in 2015 to reaching a valuation over $2.5 billion this year.

Today the company is fueling an entire generation of financial applications, all on the back of their well-built API.

Screen Shot 2019 09 06 at 10.41.02 AM

Graphics courtesy of Accel

Then and now

Accel’s first API investment was in Braintree, a mobile and web payment systems for e-commerce companies, in 2011. Braintree eventually sold to, and became an integral part of, PayPal as it spun out from eBay and grew to be worth more than $100 billion. Unsurprisingly, it was shortly thereafter that our team decided to it was time to go big on the category. By the end of 2014 we had led the Series As in Segment and Checkr and followed those investments with our first APX conference in 2015.

Plaid, Segment, Auth0, and Checkr had only raised Seed or Series A financings! And we are even more excited and bullish on the space. To convey just how much API-first businesses have grown in such a short period of time, we thought it would be useful perspective to share some metrics over the past five years, which we’ve broken out in the two visuals included above in this article.

While SaaS may have pioneered the idea that the best way to do business isn’t to actually build everything in-house, today we’re seeing APIs amplify this theme. At Accel, we firmly believe that APIs are the next big SaaS wave — having as much if not more impact as its predecessor thanks to developers at today’s fastest-growing startups and their preference for API-first products. We’ve actively continued to invest in the space (in companies like, Scale, mentioned above).

And much like how a robust ecosystem developed around SaaS, we believe that one will continue to develop around APIs. Given the amount of progress that has happened in just a few short years, Accel is hosting our second APX conference to once again bring together this remarkable community and continue to facilitate discussion and innovation.

Screen Shot 2019 09 06 at 10.41.10 AM

Graphics courtesy of Accel

 


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Looks like a nice cycle of a round year;)
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AncestryDNA And Google’s Calico Team Up To Study Genetic Longevity
Peter Short
I'm still fascinated by DNA though I favour pure chemistry what could be
Offered is for future gen…
Peter Short

U.K. Push For Better Broadband For Startups
Verg Matthews
There has to an email option icon to send to the clowns in MTNL ... the govt of India's service pro…
Verg Matthews

CrunchWeek: Apple Makes Music, Oculus Aims For Mainstream, Twitter CEO Shakeup
Peter Short
Noted Google maybe grooming Twitter as a partner in Social Media but with whistle blowing coming to…
Peter Short

CrunchWeek: Apple Makes Music, Oculus Aims For Mainstream, Twitter CEO Shakeup
Peter Short
Noted Google maybe grooming Twitter as a partner in Social Media but with whistle blowing coming to…
Peter Short