Instacart Co-founder Departs as Company Prepares for IPO

In a surprising development, co-founder Apoorva Mehta has announced his departure from Maplebear, the parent company of Instacart. Having founded the company in 2012, Mehta played a pivotal role in transforming the way people shop for groceries. While he previously stepped down as CEO in 2021, his departure as chairman coincides with Instacart's much-anticipated IPO.

Reflecting on his journey, Mehta expressed immense gratitude for the collective efforts that led to this significant milestone. What began as an idea in his bedroom has grown into a groundbreaking platform that has disrupted the grocery industry.

As he bids farewell to Instacart, Mehta is already setting his sights on his next venture. He plans to embark on a new journey in the healthcare sector with Cloud Health Systems, a healthcare start-up that secured $30 million in venture capital funding in 2022. Commenting on the striking similarities between Instacart and his new business, Mehta noted that both industries are complex and underserved by e-commerce. While the grocery industry boasts a market value of $1 trillion, healthcare surpasses it with a staggering $4.6 trillion valuation.

Despite lacking expertise in healthcare, Mehta sees this as an advantage rather than a weakness. Drawing parallels to his experience with Instacart, where he entered as an outsider to revolutionize the grocery industry, Mehta believes that a beginner's mindset is key to building innovative and transformative companies.

As Mehta bids farewell to Instacart, the company moves forward towards its IPO with a renewed sense of purpose. It remains to be seen how this departure will shape the future of the grocery delivery giant, but one thing is certain—Mehta's legacy will endure as he embarks on a new chapter in his entrepreneurial journey.

Instacart: A Solution That Keeps Fridge Stocked

Introduction

The Ever-Present Problem

According to Mehta, the CEO of Instacart, the company's core problem remains the same since its inception. From a humble start when all he had in his fridge was a bottle of hot sauce, Instacart has evolved into a platform that millions of people depend on to keep their fridges stocked. The potential for growth is enormous, as there are countless more individuals who could benefit from using the app regularly.

Market Performance

When Instacart went public, its shares were priced at $30 each. On the first day of trading, the stock opened at a higher price of $42 before settling at $33.70 by the end of the day. This initial public offering (IPO) valued Instacart at $9.9 billion. However, it is worth noting that as a private company, Instacart was once valued as high as $39 billion.

Mehta's Perspective

Mehta refutes the suggestion that Instacart's decision to go public at this time was influenced by higher tech stock valuations in previous years. He argues that all valuations have come down across the board and questions who truly benefited from such circumstances.

Mehta's Investment

As the largest individual investor in Instacart, Mehta holds approximately 10% of the outstanding shares, which accounts for a staggering $1 billion in value.