eBay raids Walmart as Jamie Iannone nabs top job

eBay is bringing in a Walmart executive as its new Chief Executive.

Jamie Iannone, Walmart’s Chief Operating Officer for US E-commerce, will take the top job, starting on 27th April.

Iannone spent nearly eight years at eBay as a Vice President. He will succeed Devin Wenig, who resigned from his role as the e-commerce giant faced pressure from two activist investors, Elliott Management and Starboard Value.

They wanted the company to review its portfolio and consider selling off assets, including its StubHub service, and its classified ads business, to drive up the value of shares.

Wenig stated in a tweet that he “was not on the same page as my new Board.” Meanwhile, Thomas Tierney, Chairman of eBay’s board, said that Iannone was the “ideal CEO to lead our next chapter of growth and success.”

“We have all been impressed by his strong track record of innovation, execution, operational excellence, and developing teams that drive results,” he added. “Jamie has consistently delivered high growth during rapid periods of industry disruption, consumer change and technological advancement.”

There may be trouble ahead

With the growth of online commerce due to the coronavirus, eBay, in theory, should be a more valuable company. It isn't. The problems that have plagued the venture, from a lack of distribution to a lack of groceries and food, are severely hurting it, argues Brittain Ladd, a former Amazon exec and supply chain consultant.

“I have stated multiple times that I believe the best strategy for eBay is to take the company private. If this isn't done, it will continue to crater under the continued bad news and criticism from Wall Street and analysts,” he said in a LinkedIn post.

eBay needs to move into the shadows to become stronger and more strategic, he continued. It should acquire a last mile delivery provider, with Skipcart and Bringg being worthy targets. It should also go big into food and groceries, by acquiring Instacart, Boxed or ShopHero.

Ladd also recommended a partnership with Flexe and a major focus on fulfilment and micro-fulfilment. “I believe this is one of the reasons why Iannone was hired,” Ladd said.

Finally, eBay must “surgically acquire” available real estate for branded stores. “What's certain is that it cannot maintain the status quo. One final comment: eBay could be acquired; Walmart, maybe?” Ladd concluded.