The SoftBank-backed startup Wag has decided to replace its chief executive officer (CEO) Hilary Schneider after raising hundreds of millions of dollars and struggling to compete.
Dog-walking company Wag announced on Tuesday that its CEO Hilary Schneider will be leaving to pursue "a new opportunity" less than two years after taking the firm's helm.
On the same day, a press release revealed that Schneider has been hired as the new CEO and president of online retailer Shutterfly. In a recent buyout deal, Apollo Global Management took Shutterfly private.
It has been reported that Wag's excellent growth declined under the leadership of Schneider, with the company going through numerous layoffs, enduring management changes, and closing down its customer service hub in the Hollywood Hills.
Her departure from the company further fueled doubts about the SoftBank strategy of investing large amounts of capital in flashy tech startups via an almost $100 billion technology investment fund. Some of SoftBank's large investments have recently undergone leadership changes, including Fair.com and WeWork.
Talking about the company's latest investment in WeWork and concerns about its other portfolio companies, SoftBank CEO Masayoshi Son said: "Is there any other similar concern? In fact, yes, there is. Like a dog-walking company and other portfolio companies, we may see similar problems surfacing."
Schneider is a veteran tech executive who joined Wag as CEO in January 2018 after it had raised $300 million from SoftBank. Expectations were high for Wag and it was expected to become one of the tech industry's next big companies.
According to Wag, its leadership was being being "highly intentional with its direction of Wag, using a data-driven approach to guide strategy and growth, while also improving the customer experience."
Wag vice-president of product, partnerships, and corporate development Garrett Smallwood will replace Schneider as CEO. In her press release, Schneider praised Smallwood saying: "He is the right leader to advance the company's business priorities
