Instacart Inc. has appointed tech industry veteran Fidji Simo as its new CEO as the grocery delivery company looks to expand its business and go public.
Ms. Simo spent the last decade at Facebook Inc., leading the social media giant’s product and mobile teams and helping the transition from a private company to a public company. He joined the Instacart board in January.
“I can’t think of a better leader to take the company public” and be at the helm, said Apoorva Mehta, Instacart co-founder and CEO, who will become executive chairman of the board next month.
San Francisco-based Instacart has been among the biggest beneficiaries as Covid-19 concerns and restrictions reordered the U.S. business world.The company, which uses shoppers to pick up food from supermarkets and deliver them to customers, received a boost as more consumers switched their purchases online during the pandemic. Instacart also works with manufacturers to offer discounts on its platform and creates websites and mobile apps for retailers.
Ms. Simo joins Instacart as the company and other delivery providers face new challenges after an exceptional year of growth. Today, more people buy food online than before the pandemic, but companies are still struggling to make a profit. Labor and transportation costs continue to affect profit margins. Competition is also intensifying, as rival food delivery companies make favorable offers.