Key facts
- Ocado is actively searching for a new CEO to replace its founder, Tim Steiner.
- The company's shares have fallen to decade lows, approaching their initial public offering price.
- The search for a successor is being led by Chairman Adam Warby.
- Niklas Heuveldop, CEO of Vonage, has reportedly been approached for the role.
- Recent struggles include Kroger closing three warehouses that used Ocado's equipment.
- Ocado is in a dispute with Marks and Spencer over a £190 million payment.
Ocado, the UK-based e-commerce and warehouse automation company, is reportedly searching for a successor to its founder and chief executive, Tim Steiner. The move comes as the company's shares have fallen to decade lows, nearing their original IPO price. Steiner, who co-founded Ocado in 2000 and led its public listing in 2010, is facing pressure amid the stock's decline.
The search for a new chief executive is being spearheaded by Ocado's chairman, Adam Warby. Sky News has reported that Niklas Heuveldop, the chief executive of Vonage, a subsidiary of Ericsson, has been approached for the position.
Ocado's recent performance has been impacted by challenges with its partnerships. In November, its US partner Kroger announced the closure of three warehouses that utilized Ocado's technology. This led to a significant drop in Ocado's share price, with a 17% fall in one day pushing the stock to a 12-year low. The company also warned of substantial job cuts and is actively seeking new partners.
Steiner himself has commented on the difficulties, suggesting Ocado was "naive" in its approach to contracts with North American partners. Despite these challenges, Ocado has secured new business, including a deal to upgrade Asda's online shopping capabilities. However, the company is also embroiled in a dispute with its partner Marks and Spencer over a £190 million payment, with Ocado threatening legal action.
Steiner, who retains a 2% stake in the company, initially founded Ocado as an online grocer before pivoting the business towards warehouse technology services.