Yesterday, the storied private business Instacart, which specializes in grocery delivery, filed paperwork in private to become public. Instacart expanded quickly and raised significant sums of money when it was only getting started. When the pandemic struck, Instacart’s company exploded as customer demand for its service spiked. The previous year wasn’t as kind. As Instacart completed a year of revenue growth fueled by COVID-19 and more people ordering in from home, growth stalled. It’s quite an accomplishment that Instacart managed to grow last year while still holding onto some of that 2020 zeal.
Instacart had to revalue itself early this year as a result of the business’s most recent venture financing rounds not pricing the company with slowing growth in mind. In addition to resetting expectations for its leaving, the measure paved the way for more employee-friendly remuneration. We are currently in front of the exit. Due to Instacart’s decision to “file confidentially before filing publicly to go public,” we do not have the company’s official S-1 filing. However, given that we are currently in the pre-IPO phase for Instacart, let’s review the most recent press coverage of the business and pose a few questions.
Our main concerns before Instacart makes its debut are its growth, economy, and revenue mix. These are connected, as you might expect. Just seven months after joining the board of directors of the grocery delivery business, Instacart has named Facebook executive Fidji Simo as its new CEO. On August 2, Simo will succeed Instacart’s creator and current CEO Apoorva Mehta. Simo was recently the vice president and head of the Facebook app. According to a statement from Instacart, Mehta will become executive chairman of the board. On behalf of Simo, Instacart refused the request for more information.
Sadly, it is still uncommon to see top executives of billion-dollar companies who are women, particularly those of color. Simo, who does not identify as a woman of color, is the co-founder of Women in Product, a nonprofit organization that promotes and advocates for women’s employment in technology while also working to empower women in product management. Instacart has a new vigor as it seeks to raise its head count by 50% in 2021, whereas Facebook has lost one of its few female CEOs.