Kalanick steps aside as Uber begins overhaul
Uber Technologies Inc. CEO Travis Kalanick told employees on Tuesday he will take time away from the company he helped to found, one of a series of measures the ride-hailing company is taking to claw its way out from under a mountain of controversies.
Kalanick’s move comes after a months-long investigation led former US Attorney General Eric Holder, who was hired by Uber 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.
Uber on Tuesday released the recommendations from that report, which include reducing Kalanick’s sweeping authority and instituting more controls over spending, human resources and the behaviour of managers.
Kalanick, 40, said he needed the time away to grieve for his recently deceased mother and to work on his leadership skills, according to a staff email seen by Reuters. He did not say how long he would be away.
“If we are going to work on Uber 2.0, I also need to work on Travis 2.0 to become the leader that this company needs and that you deserve,” Kalanick wrote in his email. “During this interim period, the leadership team, my directs, will be running the company.” According to a person familiar with the matter, Kalanick may return to the company whenever he likes.
The company on Tuesday shared with its staff 47 recommendations for management and policy changes that were unanimously adopted by the board on Sunday. Kalanick was not at the meeting, said a person present at the meeting.
The meeting was marred by private equity executive David Bonderman making a sexist remark about women talking too much. He later resigned from the board of directors, calling his comment “careless, inappropriate, and inexcusable”.
The recommendations from Holder’s firm, Covington and Burling, include adding an independent director to the board and considering an independent chair; mandated manager training; and a bigger and more independent audit committee to oversee spending and management. Other recommendations prohibit romances between bosses and their subordinates and create clearer guidelines on the use of drugs and alcohol.