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