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Instacart taps Facebook app head as CEO ahead of expected IPO

Instacart taps Facebook app head as CEO ahead of expected IPO

Instacart named Facebook app head Fidji Simo as its chief executive officer on Thursday, adding big tech expertise ahead of an expected stock market listing by the grocery-delivery firm.

French-born Simo will replace co-founder Apoorva Mehta, who will take on the role of executive chairman and still be involved in day-to-day activities, Instacart said.

Simo’s appointment comes at a crucial time for the 9-year-old startup, as expectations build for its public debut following a year in which its business grew four-fold due to the pandemic-driven surge in online grocery shopping.

“We’re here to build a long-term business over the next few decades,” Simo, who takes the helm early next month, told Reuters.

“Facebook’s IPO was just a moment in time and what happened afterward was really what mattered, which is delivering a lot of value to people and that is really what I am going to be focused on.”

Reuters reported in March that Instacart was considering going public through a direct listing, just a few days after a funding round valued the company at $39 billion.

A smiling man seated on a stage
Fidji Simo will replace Instacart co-founder Apoorva Mehta (shown) as CEO. Mehta will take on the role of executive chairman of the grocery-delivery firm.
Getty Images for TechCrunch

Mehta declined to comment on which path the company was considering to go public, but said a key reason in choosing Simo was her experience at Facebook during the social media giant’s transition to a public company in 2012.

“I’m excited about Fidgi’s experience as a public market executive in a company that has seen so much growth,” he said.

Simo said she plans to use her experience to build out Instacart’s advertising business, aiming to boost revenue from consumer-packaged goods companies promoting their products on its app.

An Instacart shopper walking down the aisle of a grocery store.
Instacart’s business surged in online grocery shopping due to the coronavirus pandemic.
Denver Post via Getty Images

The focus on alternate revenue paths comes as Instacart faces new challenges, including a likely slowdown in delivery demand as people return to stores.

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Julia Mangels

Julia has handled various businesses throughout her career and has a deep domain knowledge. She founded Stock Market Pioneer in an attempt to bring the latest news to its readers. She is glued to the stock market most of the times and just loves being in touch with the developments in the business world.

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