Instacart’s pandemic boom is fading
Mr. Mehta told each company he was talking to one of his biggest competitors, so he needed to act quickly. But the discussions did not go far. Other companies had concerns about price and antitrust review. Instacart declined to comment on the deal talks, which were previously reported by The Information.
At that time, tense discussions took place between Mr. Mehta and a group of board members led by Sequoia Capital investor Michael Moritz, four people with knowledge of the situation said. Discussions with DoorDash and Uber were part of those discussions, some of those people said. (Still, Instacart and Mr. Mehta said his departure was a voluntary decision.)
Before Ms Simo was appointed chief executive in July, there was a brief discussion about the possibility of making her and Mr Mehta joint chief executives, three people with knowledge of the situation said. This idea was quickly abandoned and Mr. Mehta became president. (New York Times chief executive Meredith Kopit Levien joined Instacart’s board in October 2021.)
Carolyn Everson, a former Facebook executive who became president of Instacart in September, left the company after just three months – the company’s most high-profile departure, which also lost its chief revenue officer as well as the person who was president before Mrs. Everson. . Ms. Everson wasn’t happy because she ended up spending most of her time working on the company’s relationships with grocery store executives, a person with knowledge of the situation said.
Instacart’s business continued to grow despite management turmoil, hitting $1.8 billion in revenue last year, a person familiar with the company said. But that was a far cry from the quadrupling of growth in 2020.
Grocery industry experts and some inside Instacart have floated the idea that the company should eliminate grocers by opening its own merchandise warehouses, which could be more lucrative. But Mrs. Simo strongly opposed this decision. Instead, she deepened Instacart’s relationship with grocers, including Kroger, Publix, Wegmans and Costco.