Tim Steiner, founder and CEO of Ocado, is expected to depart at the start of the company's 2028 financial year. This follows a succession plan masterminded by chairman Adam Warby, who has reportedly approached Niklas Heuveldop, CEO of Vonage, as a potential successor. While some shareholders resisted Steiner's departure, others called for Warby to quit instead. Ocado's share price fell nearly 5% upon the news, to 175p, and has seen a 90% decline in value over the last five years, returning to its initial flotation value from 2010 after peaking at over 2,000p in 2021.
Steiner, who co-founded Ocado in 2000, will transition into a "founder role" to provide strategic guidance. His commitment to the company remains, with a focus on achieving a positive cash flow before his departure. The company expects to appoint a new CEO before December 2027. Under Steiner's leadership, Ocado transitioned from an online grocer to a warehouse technology provider, developing innovative robotic systems for retailers.
Despite its technological advancements, Ocado has faced challenges, including a $190 million dispute with Marks & Spencer and the closure of three U.S. warehouses by its partner Kroger. The company's struggles have led some to question if the problem lies with its innovation process or the ability to monetize it effectively. The declining share price has also triggered a boardroom battle, with some shareholders pushing for Warby's removal amid reports of his efforts to accelerate Steiner's succession plan.
