Uber CEO Kalanick resigns under investor pressure
- Author: Zachary Reyes Jun 21, 2017,
Jun 21, 2017, 22:24
On Tuesday, Travis Kalanick has resigned as Chief Executive Officer, in the NY Times reported.
"We look forward to continuing to serve with him on the board".
Kalanick's resignation comes after he took an indefinite leave of absence on June 13 following the death of his mother and criticism of his management style. The announcement coincided with the release of a report compiled by former U.S. Attorney General Eric Holder recommending changes to fix the company.
Founded in 2009, Uber transformed nearly overnight from an obscure idea into a technology and transportation giant. Kalanick had planned a leave of absence, but it appears that wasn't enough for top shareholders including Benchmark Capital.
A former Uber employee, Anthony Levandowski, is also accused of stealing trade secrets from Waymo, another previous employer. "Good luck!" In April, The New York Times reported that the company uses psychological tricks on its employees to keep them on the road and generate more money for the company.
That tone was set by Mr. Kalanick, who has aggressively turned the company into the world's dominant ride-hailing service and upended the transportation industry around the globe. Though Silicon Valley investors have shown that they will follow a founder's direction in even the most turbulent times, recent events proved to threaten Uber's stability, something they could not accept. The move is a culmination of Uber's long string of setbacks that included two investigations into allegations of harassment, an exodus of C-Suite level executives and the #deleteuber campaign that reduced consumer trust in the company, among other events. The company has recently lost its Chief Operating Officer, Chief Marketing Officer and Chief Financial Officer. She had added that there were more women who had experienced similar things at the company.
Meanwhile, since Kalanick is a major shareholder in the company, he might keep on wielding quite a significant power from the sidelines.
Kalanick is to stay on as a board member, Uber said.
Mr. Kalanick's resignation opens questions of who may take over Uber, especially since the company has been so molded in his image.