Ocado has started a search for a new boss to succeed co-founder Tim Steiner as the grocery delivery firm's shares languish.

Responding to speculation, the group confirmed that chief executive Steiner and his board 'continually engage’ in discussions over the firm’s future leadership.

But bosses tried to downplay any suggestions of immediate leadership changes, instead calling it ‘long-term succession planning’.

The brief statement said: ‘Ocado confirms that the CEO and the board continually engage in long-term succession planning and regularly engage with potential candidates.’

It follows a report from Sky News which said that Ocado had reached out to Niklas Heuveldop, the boss of Ericsson-owned telecoms company Vonage, as a potential successor.

The hunt is being spearheaded by Ocado chairman Adam Warby, Sky News said.

Steiner, a former Goldman Sachs bond trader, has led the company for 26 years since he founded the business in 2000 alongside former colleagues Jason Gissing, and Jonathan Faiman.

The UK-listed company sells technology to retailers to pick and dispatch online food orders from robotic warehouses.

Investors have been losing patience with the group as new openings with existing partners and further technology deals have failed to materialise.

It also runs its own grocery firm in partnership with Marks & Spencer, which has turned a corner after online grocery was hit by shoppers returning to physical shops after lockdown.

Shares plunged to their lowest level in 13 years on Monday morning before recovering slightly to 172.60p. 

Shares have fallen 93 per cent since their peak in September 2020, when shoppers turned to online grocery amid the Covid pandemic.