In turn, a hefty percentage of those businesses have since turned into paid advertisers.
The figures mean the number of advertisers using Instagram has grown five-fold from the 200,000 number it cited past year.
But it's unclear whether customers will be able to choose a time and confirm the booking completely in-app or if they will have to follow an external link to the business website. Facebook said Wednesday it has eight million businesses using business profiles.
Eighty percent of Instagram's users follow a business, he said.
While the move many not be a revolutionary addition to Instagram, it signals that the app, under Facebook's banner, will look to diversify from the world of consumer networking and business promotion, to more meaningful transactions between businesses and consumers.
More than 600 million people use Instagram worldwide and for various reasons. Later this year, Instagram plans to roll out the ability to book a service with a business directly from their profile.
The numbers are an endorsement of Instagram's efforts to provide tools to make it easy for businesses to advertise on its platform. Facebook has warned investors that in the second half of 2017 ad load growth will slow on Facebook, but will continue on Instagram. Founder and CEO Shari Lott said: "Instagram gave us a chance to grow the business".