Even if you don’t use Instacart, you’ve likely heard of the company and know what they do.
But do you know any of the basics of Instacart? This company has an interesting backstory and is heading toward big changes.
To some, it may feel like Instacart has been around forever because of its wild success.
To others, they may only be aware of Instacart because of COVID-19, but the company was around well before the pandemic that began in 2020.
Read on to learn more about the company and how Instacart works and operates from the inside.
When Did Instacart Start?
Instacart began in June 2012. While the concept and app had been in development for some time, the official start of Instacart was in June 2012, as this was when the mobile app and website were first launched.
So by this time, relationships with local retailers had already been initiated.
Where Was Instacart Started?
The concept for and execution of the Instacart app and website occurred in the San Francisco Bay Area. While it’s an American-based company, the service is now available in Canada!
While the headquarters and initial service started in San Francisco, the app and website were operational nationwide soon after, so the business expanded quickly.
How Was Instacart Founded?
The Instacart company was founded by Apoorva Mehta, Max Mullen, and Brandon Leonardo.
Mehta was the one who initially came up with the concept. After that, Mehat pitched over 20 ideas to investors until he landed on the concept of Instacart, which grabbed people’s attention.
Mehta saw the importance of prompt grocery delivery for people who did not have the time or capacity to go to the grocery door and do their own shopping.
So he pitched Instacart as a convenient solution to the hassle and effort of traditional grocery shopping.
As he developed the concept, he partnered with Max Mullen and Brandon Leonardo to make his idea a reality for thousands of people.
A few months into 2012, he started the code that would eventually be the Instacart app and website.
Mehta was a Canadian citizen but saw the potential of starting the business in San Francisco, thanks to his partners, which is why it was originally founded in the Bay Area.
Who Owns Instacart?
Instacart does not technically have a single owner. They have a CEO and a parent company who control the operations, but no one owns the entire company or parent company.
The parent company is run and controlled by a board of directors. Not all board members are publicly known, but some of the most important chairpeople include Fidji Simo, Apoorva Mehta, Brandon Leonardo, Max Mullen, Mark Schaaf, Michael Mortiz, Nick Giovanni, Asha Sharma, and Chris Rogers.
The ownership percentages of each partner are not public, but the current CEO and founders likely have the most stake in the company and the most control when it comes to business operations.
But all decisions are made by the board of directors holding a vote.
What Is the Parent Company of Instacart?
The parent company of Instacart is an investment company called Maplebear Inc.
A parent company, also called a holding company, is a corporation that controls subsidiaries or separate businesses that are partially owned and controlled by the parent.
Parent companies effectively control their subsidiaries through the board of directors, making all business decisions for their subsidiaries to streamline management operations.
As mentioned, Instacart’s parent company is Maplebear Inc. This holding company mostly controls Instacart, acting as a sort of umbrella company to limit liability.
They have headquarters in San Francisco and control a few other very small companies.
Other companies under the Maplebear Inc. umbrella include Ridley’s Family Markets, Shop United, Shop Cash Saver, and Homeland Grocery Delivery.
None of these companies are as successful or well-known as Instacart and offer similar services.
Instacart was Maplebear’s first subsidiary, and both companies began at the same time (June 2012).
Who Is the CEO of Instacart?
CEO stands for Chief Executive Officer. CEOs typically make important and final decisions on business operations, but they usually also work with a board of directors who weigh in on decisions.
Instacart’s CEO is Fidji Simo as of July 2021. Before her appointment to CEO, the founder, Apoorva Mehta, was the acting CEO for over eight years.
Fidji Simo is the current CEO of Instacart and the Chair of the Board of Directors of Instacart.
She has an impressive and long resume with many management positions at major tech and shopping companies.
She was the strategy manager for eBay from 2007 to 2011, then she worked her way up the ranks at Facebook (Meta) and cofounded the Metrodora institute and foundation.
She is also an acting member on the board of directors for Shopify and Cirque De Soleil, in addition to being the CEO of Instacart.
So, she’s a very busy woman and has been dubbed one of the most creative managers of the 21st century.
Is Instacart Public or Private?
As of early 2023, Instacart is still privately held. They are not publicly traded on NYSE or NASDAQ.
Most companies remain private for the first 8-10 years of business before becoming publicly traded companies.
When to Expect an Instacart IPO
If you want to invest in Instacart, you probably can soon!
With the newly appointed CEO, the company plans to go public soon. In 2021, they hired a Goldman Sachs banker named Nick Giovanni.
Giovanni joined the board as the CFO, along with Asha Sharma as the COO.
They’re on the board to eventually aid the company in going public.
Since they’ve been on the board for about two years, the public offering is likely in the near future.
Instacart is a massive company. It had 9.6 million users in 2020 and continues to grow.
The pandemic helped boost the company’s business, as people needed safer and more convenient ways to get their groceries.
Now you know who owns Instacart and how the management system works.
So, what is next for Instacart? Likely the NYSE and NASDAQ!
If you’re interested in investing in Instacart, keep an eye out for their public offering because it’s looming!