What's next for Instacart as CEO Fidji Simo announces decision to join OpenAI as head of applications?

Instacart CEO Fidji Simo is departing the grocery technology company to join OpenAI as its Chief of Applications.

In an email to employees, she said: “Let me start by saying this was an incredibly hard decision because I love this company. We are operating incredibly well as our last earnings results have shown. Our strategy is working and this team is top notch, which makes it very hard to leave.”

“At the same time, you all know my passion for AI generally and in particular for the potential it has to cure diseases - the ability to lead such an important part of our collective future was a hard opportunity to pass up. I only feel comfortable doing this because Instacart is on an excellent track and in great hands with a stellar management team.”

Simo added that she is not going anywhere for a couple of months. “Our board regularly conducts succession planning exercises, and we expect the new CEO will be announced soon and will be an existing member of our management team. I’ll remain CEO and work closely with my successor and our leadership team to ensure a smooth handoff. I’ll also stay on as Chair of the Board to support our next CEO.”

So what next for Instacart? According to sources, Daniel Danker (the current Chief Product Officer and Head of Online Grocery) is favoured to become the next CEO.

“Danker would be my choice as well of internal candidates to replace Simo. If Danker does become CEO, I believe his first move will be to negotiate an acquisition of Instacart by Uber,” says Brittain Ladd, a supply chain consultant and former Amazon executive.

“It is possible that DoorDash may want to acquire Instacart. However, based on discussions with multiple sources, Uber is the preferred company for the acquisition. I anticipate that DoorDash is considering an acquisition of Lyft over Instacart.”

He adds: “It's also possible that Danker may first choose to strengthen Instacart's platform and value proposition by acquiring 345 Global and/or Panso. Instacart should have already acquired 345 Global. I've recommended to VusionGroup and Badger Technologies to assess an acquisition of 345 Global due to the strategic fit. I'm surprised Instacart hasn't pursued a partnership with Badger Technologies for their retail focused robots. Badger has the best robots for retail on the market.”

Instacart also has an opportunity to make a big move by becoming an online grocery retailer fulfilling orders direct to its own customers vs fulfilling orders for grocery retailers, Ladd believes.

“If it chooses to make the move, it will become the second online grocery retailer in the USA; Walmart will be first but barely. I'm confident that Danker can successfully pivot Instacart if he chooses,” he concludes.

2025 RTIH INNOVATION AWARDS

Grocery technology will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.