Uber CEO Travis Kalanick resigns as investors revolt

Travis Kalanick has stepped down as CEO of Uber, the ride-hailing company that he helped define with his aggressive strategies in pursuit of growth.

Kalanick founded Uber in 2009, but a series of scandals including allegations of sexual harassment, the use of software to avoid law enforcement officials in cities where Uber is banned, and the tracking of drivers from competitor Lyft eventually led to him announcing an indefinite leave of absence last week.

That’s escalated now, and Kalanick is resigning amidst a revolt from investors demanding a leadership change. According to the New York Times, five of Uber’s major investors requested the CEO’s immediate resignation in a letter delivered to him while he was in Chicago.

After long discussions with investors and consulting with at least one Uber board member, Kalanick agreed to step down, although he will remain on Uber’s board of directors. He will also retain control of the majority of Uber’s voting shares.

 “I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight,” Kalanick said in a statement to the Times.

Kalanick’s parents were recently involved in a boating accident that killed his mother and put his father in hospital, and Uber’s board acknowledged that this was a challenging time for him in a statement to TechCrunch:

“Travis has always put Uber first. This is a bold decision and a sign of his devotion and love for Uber. By stepping away, he’s taking the time to heal from his personal tragedy while giving the company room to fully embrace this new chapter in Uber’s history. We look forward to continuing to serve with him on the board.”

His departure leaves Uber without a CEO, COO, CFO, CMO and other key positions, after multiple top executives left in recent months, including company President Jeff Jones.

Uber also commissioned an external investigation into the complaints of sexual harassment and discrimination, and the results eventually led to the firing of over 20 employees.

The company was recently valued at around US$70 billion, and investors stand to lose billions if that valuation slips. Their demands for Kalanick’s resignation were then an attempt to protect their investment and distance Uber from the troubling revelations.

Source: The New York Times

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