April 16, 2001, 12:00 AM

WebVan CEO George Shaheen resigns

After WebVan’s poor results, released in its annual report released earlier this month, George T. Shaheen has resigned, saying “a different kind of executive is needed to lead the company.

After WebVan’s poor results released in its annual report earlier this month, George T. Shaheen resigned Friday, saying “a different kind of executive is needed to lead the company at this time,” according to a company statement. The annual report said the company needed to raise an additional $5 million to $15 million by this year’s final quarter and expects to have to raise as much $60 million to stay in business in order to meet its goal to turn a profit by the second half of 2002. WebVan has lost $610.8 million since 1998, including $453.3 million last year. Robert Swan, WebVan’s COO, will run the company until a new CEO is hired. Shaheen left Andersen Consulting as CEO in September to run WebVan.

This latest development continues to put the online delivery strategy under scrutiny: Rival online grocer Peapod was bailed out of bankruptcy by Royal Ahold last year and quick-delivery company Kozmo.com went out of business just last week.

 

comments powered by Disqus

Advertisement

Advertisement

Advertisement

From IR Blogs

FPO

Will Devlin / E-Commerce

Three simple steps to reducing shopping cart abandonment

Payment options, a shopping cart that holds a customer’s items while she ponders the purchase ...

FPO

Adrien Henni / E-Commerce

eBay and Russian Post accelerate cross-border deliveriies

EBay and Russian Post have signed a memorandum of cooperation aimed at reducing the time ...

Advertisement