Kalanick’s ride as Uber CEO ends
SAN FRANCISCO: Uber Technologies Inc chief executive Travis Kalanick, cofounder of one of the most influential technology companies of its generation, resigned on Tuesday under pressure from investors after a string of setbacks.
Kalanick’s departure caps a tumultuous period for the world’s largest ride-services company that has revolutionised the taxi industry and challenged transport regulations worldwide.
The 40-year-old’s pugnacious style largely defined Uber’s approach and helped it become a transport colossus valued at US$68 billion (RM291.7 billion), the largest private firm backed by venture capitalists in the world.
But that brashness has also been blamed for scandals this year, from the unearthing of a culture of bullying and discrimination at Uber to a US Department of Justice federal investigation and a high-stakes lawsuit filed by Alphabet Inc that threatens Uber’s self-driving car ambitions.
“I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors’ request to step aside so that Uber can go back to building rather than be distracted with another fight,” Kalanick said in an email to employees that was provided to Reuters.
Kalanick’s departure widens an already gaping hole at the top of Uber which has no chief operating officer, chief financial officer or general counsel at the moment. For now, 14 people who reported to Kalanick are running Uber.
Kalanick faced increased scrutiny for a culture of sexism and rule-breaking at the company he helped start in 2009. After a video showing Kalanick berating an Uber driver who had complained about falling wages was released in February, the CEO made a public apology and promised to seek “leadership help”.
Ultimately, it was some of Uber’s main investors who forced Kalanick out, according to a source familiar with the matter.
Venture capital firm Benchmark, whose partner Bill Gurley is one of Uber’s largest shareholders and sits on its board, plus investors First Round Capital, Lowercase Capital, Menlo Ventures and Fidelity Investments, all pressed Kalanick to quit.
A source close to Menlo Ventures, which led one of Uber’s early financing rounds, told Reuters that the firm helped write a letter calling for Kalanick to step down.
The investors delivered the letter to Kalanick while he was in Chicago, The New York Times reported, citing people with knowledge of the situation.
Kalanick’s decision “was a surprise to everyone”, a second Uber spokesman said.
In a statement provided to Reuters, the Uber board of directors called Kalanick’s resignation “a bold decision” that “gives the company room to fully embrace this new chapter in Uber’s history”.
Kalanick will remain on the board. – Reuters