Uber Investors Force CEO Travis Kalanick to Quit Post
- Author: Carolyn Briggs Jun 21, 2017,
Jun 21, 2017, 20:44
Uber's embattled CEO Travis Kalanick has resigned from the ride-sharing company in the face of intense pressure from some of its investors.
Kalanick had already made a decision to take an indefinite leave of absence from the company, but now he's leaving for good. Kalanick was sent a letter with the demand to step down.
Kalanick said in a statement to The New York Times yesterday that he has accepted a request from investors to step aside. That's significant, as Paris is where Kalanick is said to have come up with the idea for Uber.
Benchmark was an early investor in Uber. A spokesperson for Uber could not immediately be reached for comment. The company was valued at near $70 billion the last time it sought capital.
In a memo, Kalanick told employees about his decision.
Uber hired Holder to look into its culture and workplace practices after a female former employee publicly accused the company of what she described as brazen sexual harassment.
On Tuesday, the company embarked on a 180-day program to change its image by allowing riders to give drivers tips through the Uber app, something Kalanick had resisted. The U.S. Justice Department is investigating Uber's past usage of phoney software created to thwart local government regulators who wanted to check on whether Uber was carrying passengers without permission.
The firm has been searching for a chief operating officer, but now can seek out Fortune 500 chief executives to take over the top spot, he said.
Mr Kalanick, who helped found the company in 2009, is reported to have quit following shareholder unrest over his leadership.
Following the letter's delivery, Kalanick consulted with a board member on the matter.
There has also been a lawsuit from Google's parent company, Alphabet, over alleged theft of trade secrets related to driverless cars. He finally agreed to step down after long discussions with a number of the investors. "I must fundamentally change as a leader and grow up", he says.
She repeated that position on Friday in an interview with Reuters by saying Kalanick's leave of absence was exclusively his decision.