Dive Brief:

• Online-grocery delivery startup Instacart has confirmed reports of a $220 million investment from firms led by Kleiner Perkins Caufield & Byers.

• The investment firm has valued the company at $2 billion.

• Instacart CEO Apoorva Mehta said the company is working on moving into more cities, where in some smaller areas it may provide same-day rather than one-hour delivery, and is experimenting with using third-party companies to accommodate its growth.

Dive Insight:

With such a large infusion of cash, Instacart can really contemplate its future and its expansion — to more cities and possibly to more services beyond grocery. Observers will be watching closely any plans to work with outside companies, and whether the startup can maintain its momentum in more cities and smaller ones, which can present greater logistical challenges.

Also interesting is the note that Instacart may be experimenting with third-party companies for delivery. In an interview with Fortune, Instacart CEO Apoorva Mehta said that there are "potential ways" the company can work with Uber, which is already testing a similar service Uber Essentials. If a partnership forms between the two companies, we may be seeing an escalation in the already competitive delivery wars.  

But with more money comes higher expectations, and with swift growth comes risks. There’s much to do for the company.