Investing.com -- Shares of Deliveroo (OTC:DROOF) (LSE:ROO) slipped 1.5% following unconfirmed reports that the company's founder and CEO, Will Shu, may leave the company.
Sky News reported that the company is considering replacing Shu. The speculation about Shu's potential exit is seen as a negative development for the food delivery company, which has been recognized for its leadership and innovation under his direction.
“In response to rumours in the media, the company confirms that there are no plans for Will to step down. Will remains relentlessly focused on the long term future of Deliveroo and delivering for consumers, merchants and riders," a Deliveroo spokesperson told Investing.com.
Founded as a mid-cycle challenger in the food delivery sector, Deliveroo has been at the forefront of major industry debates, from the efficacy of delivery models to the expansion into non-food retail.
Shu's leadership is highly regarded within the investment community, and his departure could mark a significant shift for the company.
In terms of succession, Deliveroo boasts a strong internal candidate pool, including senior leaders from Amazon (NASDAQ:AMZN), according to Jefferies.
Carlo Mocci, who was recently promoted to Chief Business Officer in November 2024, is mentioned as the leading internal candidate for the CEO position. Additionally, Deliveroo's COO, Eric French, and CFO, Scilla Grimble, are considered potential successors.
Jefferies analysts commented on the situation, stating, "We view Deliveroo as a strategic asset and a potential target in any sector consolidation, and we think Shu's departure would reduce its value to a prospective buyer."
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