Uber founder resigns as CEO

He will remain on the Uber Technologies Inc. board. Under Kalanick's leadership, Uber has come under fire for sexual harassment, building a tool to flout regulators and its handling of a rape victim's medical records.

Mr Kalanick had already been on indefinite leave amid criticism of his management style and following the death of his mother in a boating accident. In the missive, obtained by the New York Times, the investors demanded Kalanick leave immediately, and suggested the company needed a change in leadership.

"As you all know, I love Uber more than anything in the world, but at this hard moment in my personal life, I have accepted a group of investors' request to step aside, so that Uber can go back to building rather than be distracted with another fight".

As Uber's public face, Kalanick has embodied the start-up's success. Kalanick resigned Tuesday night under pressure from Uber's board and investors after a series of scandals. For now, 14 people who reported to Kalanick are running Uber.

Despite all the troubles, Uber's business is growing with revenue reaching $3.4 billion in the first quarter of this year.

Kalanick faced increased scrutiny for a culture of sexism and rule-breaking at the company he helped start in 2009. The company is now valued at $69 billion. See PA story INDUSTRY Uber.

Camp, who now acts as a chairman at Uber, said that the company has formed a new executive leadership team, and that he believes the company can increase its impact "once we have additional leadership and training in place, and evolve our culture to be more inclusive and respectful". Former Attorney General Eric Holder conducted one of the probes, finding that the male-dominated Uber didn't have the most basic policies to protect workers from harassment.

A key step toward Kalanick's downfall came in February, when former Uber engineer Susan Fowler posted a personal essay about the year she spent at Uber, writing that she was propositioned by her manager on her first day with an engineering team. Among a sweeping list of recommendations for reform, the report called for reviewing and reducing Kalanick's role in the company.

In March, board member Arianna Huffington expressed confidence that Kalanick would evolve into a better leader. Uber had said they were working on fixing these problems, and recently, they introduced new initiatives such as allowing passengers to tip.

Even though Kalanick is no longer CEO, he will likely continue to have a strong influence on the startup he cofounded.

  • Zachary Reyes