instacart hires facebook executive as new ceo ahead of expected ipo

Instacart Announces New Leadership

Instacart has named Fidji Simo, an executive from Facebook, as its new Chief Executive Officer. This appointment follows just seven months after Simo joined the grocery delivery company’s board of directors.

Simo, who previously held the position of vice president and head of the Facebook app, will assume the CEO role on August 2nd, succeeding Instacart’s founder, Apoorva Mehta.

Transition of Leadership

Mehta will be transitioning to the position of executive chairman of the board, as outlined in an official statement released by Instacart.

Instacart has stated that Simo is currently unavailable for additional commentary regarding this leadership change.

Significance of the Appointment

The appointment of a female CEO, particularly within a billion-dollar enterprise, remains a relatively uncommon occurrence, especially for women of color.

Simo is a co-founder of Women in Product, a non-profit dedicated to empowering women in product management and advocating for their career advancement within the technology sector.

This transition signifies a loss of a prominent female leader for Facebook, while simultaneously injecting new momentum into Instacart as the company plans a 50% increase in its workforce during 2021.

Mehta’s Departure and Instacart’s Growth

The timing of Mehta’s departure, occurring shortly before a potential Initial Public Offering (IPO), is noteworthy.

Mehta established Instacart a decade ago, nurturing its growth from its inception within Y Combinator’s 2012 summer program to its current valuation of $39 billion.

The COVID-19 pandemic significantly highlighted Instacart’s value, as millions globally faced quarantine restrictions and limited opportunities for in-person shopping, including grocery store visits.

Expansion of Services and Controversies

Increased consumer demand for delivery services prompted Instacart to expand its workforce and introduce same-day delivery for a wider range of products. These included items beyond groceries, such as electronics, sporting goods, and even prescription medications.

However, this growth has not been without its challenges. Instacart, alongside companies like Uber, Lyft, DoorDash, and Postmates, financially supported Proposition 22.

This measure classified gig workers as independent contractors, potentially limiting their access to certain benefits. The passage of Prop 22 was viewed by some as advantageous for Instacart’s leadership and potentially detrimental to its delivery personnel.

This followed years of protests and legal challenges concerning wages and tipping practices, where Instacart faced scrutiny for policies perceived as unfair to its shoppers.

Simo’s Experience and Facebook’s Support

Simo brings experience navigating complex corporate environments, gained during her decade at Facebook.

Sheryl Sandberg, Facebook’s Chief Operating Officer, publicly acknowledged Simo’s departure, expressing gratitude for her contributions.

“Fidji – I’m immensely grateful for the impact you’ve had on Facebook over the last 10 years,” Sandberg commented on the platform. “You’ve worn so many hats leading the Facebook App – all while advocating for gender equality in the tech community. I’m so proud to see where you’re headed. Cheering you on!”

Instacart’s Future Outlook

Instacart recognizes Simo as a key architect of Facebook’s mobile monetization strategy and the driving force behind its advertising business structure.

She played a crucial role in scaling Facebook from a team of 1,000 to 100,000 employees and guiding its transition to a publicly traded company – experience that aligns well with Instacart’s own aspirations for an IPO.

Simo’s appointment coincides with the easing of pandemic restrictions and the reopening of economies worldwide, signaling a new phase for Instacart and presenting new challenges in maintaining its relevance in a changing market.