Peter Plumb has announced he is stepping down as director and chief executive of food delivery company Just Eat immediately,while Peter Duffy, chief customer officer, has been appointed as interim CEO.
Plumb was appointed CEO in mid-2017 with a target of getting the company in the FTSE 100, achieved in December that year. However after facing increasing competition from new rivals, such as Deliveroo and Uber Eats, the shares fell 26.2% over 2018.
“I think the market’s been a little frustrated with the quality of communication that the company has had with the market and with investors around some of the strategy,” said London-based Jeremy Thomas, head of global equities at Sarasin & Partners LLP, and a shareholder in Just Eat, “particularly around the costs of delivery.”
Before eventually returning to positive, shares in Just Eat initially fell 5.8 percent in early trading Monday. Shares have also fallen 18% over the past 12 months due to growing threat from rival apps as well as doubts about the success of international expansion.
“The business is in good health,” said Plumb, “Now is the right time for me to step aside and make way for a new leader.”
“The departure will raise questions about why it has taken place,” said Ian Whittaker, analyst at Liberum, in a research note. “One possible explanation is that there may have been a dispute over the direction of the Latin American strategy.”
Just Eat will provide further detail on its plans at its full-year 2018 results on March 6.