Supply chain expert comments on Instacart’s recent hires, DoorDash’s strategy

A month after poaching Facebook’s Fidji Simo as its new CEO, Instacart has brought in another high-ranking Facebook executive as its president. On Wednesday, the online grocery-delivery company said Carolyn Everson, formerly the head of ad sales at Facebook, will lead Instacart as its president in September.

Strategic executive hiring

Supply chain management expert and Kuecker Pulse Integration (KPI) CMO Brittain Ladd commented in a LinkedIn post that Simo and Everson will transform Instacart into an “advertising and social commerce powerhouse” and “I like the changes.” Instacart would be best served by splitting itself into two separate companies. The first will focus on commerce and fulfillment while the other will focus on media and advertising.

Concerned about Fabric partnership

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Instacart recently partnered with Fabric in a push to automate order fulfillment in the United States and Canada. Ladd wrote that “off the record discussions” with current and ex-Fabric executives highlighted some concerns in Fabric’s software and technology.

He wrote in a prior LinkedIn post that Instacart “may struggle to achieve anywhere near the performance they desire out of their MFCs.” As such, the company needs to hire an outside expert to evaluate Fabric’s solution.

The company also needs to internally review why it selected Fabric over rivals like Attabotics, AutoStore, and others.

Ladd is offering Instacart the following piece of advice:

I am recommending to Instacart to thoroughly evaluate Fabric’s software and technology to ensure that it will meet their needs. If not, explore changing the manufacturing and procurement process to use products from other manufacturers instead of manufacturing in-house.

Instacart as the next Amazon

Ladd wrote he recommended to Instacart to open micro-fulfillment centers and for Instacart to acquire a system integrator that would allow it to lease or sell micro-fulfillment centers directly to grocery customers.

The logic behind this stems from the fact that Instacart’s grocery customers are engaged in discussions with micro-fulfillment companies. This would create a scenario where grocery customers no longer need to maintain a relationship with Instacart.

Despite what appears to be a few missteps in Instacart’s vision, Ladd appears to be bullish on Instacart. He wrote that it can “easily” acquire one of many grocery retailers and it needs to immediately acquire Gopuff, a delivery solution company with operations in 500 cities.

Once back on the right track, Ladd wrote that “Instacart is trying to become the next Amazon.”

DoorDash needs to reflect on its purpose

In a separate LinkedIn post, Ladd wrote that DoorDash Inc (NYSE: DASH) represents Instacart’s “biggest threat” but the company faces some internal issues. Specifically, off the record conversations with DoorDash executives suggest management is “scrambling” and “aren’t sure they’re pursuing the right strategy.”

DoorDash is reportedly in talks to acquire a rapid grocery delivery company called Gorillas and Ladd wrote DoorDash is likely exploring several other options for its business.

DoorDash exists to become the largest delivery and fulfillment company in the world with notable strength across groceries, dark kitchens, restaurant delivery, and Micro-fulfillment as a Solution for retailers and brands, he wrote. But first, the company needs a “timeout” and properly explore an optimal M&A strategy to strengthen its differentiated capabilities.

Among the several options that could put DoorDash on the right course includes investing in or acquiring logistic companies like Urbx or Cart.com and become an expert at automated fulfillment.