Facebook wannabe Instacart should rethink MFCs move

US grocery delivery venture Instacart wants to be Facebook, according to Brittain Ladd.

The former Amazon exec and supply chain consultant notes that Instacart has been making a series of interesting moves as it prepares to launch an IPO later in 2021 or early 2022.

This includes naming Fidji Simo, a high ranking executive at Facebook, as CEO. In turn, Simo recently chose Facebook veteran Carolyn Everson to be Instacart's President.

“I like the changes as it provides Instacart with a more experienced executive team to run the company,” Ladd said in a LinkedIn post.

We’re excited to share that @ceverson is joining Instacart as President. Read more on her appointment & the deep expertise she’ll bring to Instacart as we continue to reimagine the role Instacart can play in the future of food: https://t.co/nozpND3xes
— Instacart (@Instacart) August 4, 2021

Instacart also recently partnered with Fabric to open micro-fulfilment centres (MFCs), although Ladd is less impressed with this initiative.

“Among my concerns are the fact that in off the record discussions with current and former Fabric executives, concerns were raised about its software and technology,” he commented.

“My sincere desire is that Everson and Simo will hire an independent material handling firm, consulting firm, or a system integrator, to throughly evaluate Fabric's solution. In addition, the decision to select Fabric over Attabotics., AutoStore, Addverb, Alert Innovation, Berkshire Grey, Exotec, and Geek+, should be reviewed.”

Ladd insists that he has no financial interests in any of the aforementioned micro-fulfilment companies. “In my opinion, a review is necessary to protect the reputation of Fabric and Instacart. If issues are found, they can be addressed.”

He added: “I support the decision to open MFCs. In addition, I've recommended Instacart to acquire a system integrator allowing it to sell or lease MFCs direct to its grocery customers.”

“Why? Because its grocery customers are actively engaged in discussions with micro-fulfilment companies. Grocery customers of Instacart that install their own MFCs, no longer need Instacart. From a strategy perspective, what I recommend would be a wise move on the part of Instacart.”

He also believes that vertically integrating and opening MFCs will allow the company to pivot away from its grocery customers, and help it to become an online grocery retailer selling direct to consumers.

Ladd concluded: “I’ve also stated Instacart can easily acquire any number of grocery retailers. They’re making a big mistake ignoring Gopuff. Acquire GoPuff. Like now.”