Fresh blow for Deliveroo as Wolfson quits

nExT chief executive lord Simon Wolfson has stepped down from the board of deliveroo in a fresh blow for the food delivery company.

The Conservative peer, one of the UK’s most high-profile businessmen, was brought in as a non-executive director ahead of a much-anticipated IPo in March 2021.

But since then the share price has fallen around twothirds, as it fights rising competition and cost-conscious consumers cutting back on discretionary spending.

The exit of Wolfson, who joined the board around 18 months ago in his first external directorship in three decades, comes at a critical time.

deliveroo’s float was branded london’s worst stock market debut when £2bn was wiped off its value on its first day of trading. Yesterday, it reported widening losses of £147m in the first half of this year versus £95m in the first half in 2021.

analysts said the firm faced a ‘plethora of problems’, from stiff competition to the grim economic climate.

Wolfson decided to leave ‘after much consideration, and with regret’ as the role was ‘no longer compatible’ with his other commitments.

It is understood that he and deliveroo founder and chief executive Will Shu remain on good terms. Shu said: ‘He spent a huge amount of time with me personally – he and I have a great relationship. We’ll continue to meet up and chat but we’ll miss him.’

This week it was revealed next was having problems implementing a new payroll system, which has led to overpayments and underpayments of staff. HM Revenue & Customs is looking into whether that meant some were paid less than the minimum wage.

In an analyst note Shore Capital said Wolfson’s departure from deliveroo was ‘a major loss’ at a time when it is facing intensifying competition in its key london market from the likes of Just Eat.

‘as the pressure piles on from more profitable operators, the scope for higher fees will disappear and the retention of labour will prove more difficult,’ Shore Capital analyst Clive Black said.

orders rose 10pc year-onyear to 160m over the first six months of 2022, with revenues climbing 12pc year-on-year.

It has significantly increased spending on marketing and overheads, up 29pc to £368.8m in the first half.