UBER PICKS EXPEDIA BOSS KHOSROWSHAHI AS ITS NEXT CHIEF EXECUTIVE
SANFRANCISCO: Uber Technologies Inc chose Dara Khosrowshahi, the chief executive of travel company Expedia Inc, as its CEO on Sunday, according to two people with knowledge of the matter, handing him the challenge of leading the rideservices company out of a nearly year-long crisis.
Khosrowshahi, 48, would take on the daunting task of mending Uber’s image, repairing frayed relations among investors, rebuilding employee morale and creating a profitable business after seven years of losses.
In Khosrowshahi, Uber’s board has picked an executive with a track record of driving growth while also delivering profits—precisely what the unprofitable Uber needs to satisfy investors. He has also proven capable of making Expedia the leader in another industry full of change and competition—online travel.
But he would also have to contend with the legacy of Travis Kalanick, Uber’s pugnacious co-founder, who was ousted as CEO in June after shareholders representing about 40% of the company’s voting power signed a letter asking him to step down amid growing concern over his behaviour and the behaviour of senior managers under him.
The Uber board of directors has been meeting daily and deliberated on its pick for CEO throughout the weekend. A spokeswoman said on Sunday that the board had voted but was declining to disclose its choice publicly until after informing employees.
An Uber spokesman and an Expedia spokeswoman declined to comment. Khosrowshahi did not immediately respond to requests for comment through email and on Twitter.
Khosrowshahi ran Expedia for 12 years. Under his leadership, Expedia more than doubled its annual revenue since 2012 to $8.8 billion in 2016.
At Uber, he would bring an end to a company culture built on founder control. Kalanick enjoyed sweeping authority on the board and nearly complete autonomy in running the company, a governance style that helped to create a workplace that had few checks and balances. The company, which was valued at $68 billion at its most recent investment last year, recently saw some mutual funds writing down the value of their investments by 15%.