‘At war’ with all, Uber leader surrenders
CEO steps down amid tussles, series of costly missteps
DETROIT — Travis Kalanick’s combative personality created the culture that let Uber grow from startup to behemoth in just eight years. But the ridehailing company had trouble growing up, leading to his downfall.
Kalanick, 40, stepped down as CEO late Tuesday, saying in a statement that his departure would help Uber return to growth “rather than be distracted by another fight.”
This time the fight was with investors and his board, with several big players pushing for him to move aside. It was one fight too many after years of tussles with just about every business partner Uber touched.
“When you're at war with customers, employees, Under Travis Kalanick, Uber earned a reputation for ruthless tactics that outraged many. service suppliers, you can’t build up a business model, and Kalanick was at war with everyone,” said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the Uni- versity of Duisburg-Essen. “There is no business model in being at war.”
Uber’s board confirmed Kalanick's resignation Wednesday, saying in a statement that Kalanick is taking time to heal from the death of his mother in a boating accident “while giving the company room to fully embrace this new chapter in Uber’s history.” He will remain on the Uber Technologies Inc. board.
It was unclear who would replace Kalanick.
Uber made a series of costly missteps under Kalanick that damaged its reputation, including revelations of sexual harassment in its offices, allegations of trade-secrets theft and a federal investigation into efforts to mislead local government regulators.
Investors have talked about selling stock in Uber to the public, a move that would imply a transition to an established business. The company was valued at near $70 billion the last time it sought capital.
On Tuesday, the company embarked on a 180day program to change its image by allowing riders to give drivers tips through the Uber app, something Kalanick had resisted. Drivers have said that Kalanick didn’t value their labor.
But under Kalanick, the company developed a reputation for ruthless tactics that have occasionally out- raged government regulators, drivers, riders and employees.
The Justice Department is investigating Uber’s past usage of phony software designed to thwart local regulators who wanted to check on whether Uber was carrying passengers without permission.
In February, former Uber engineer Susan Fowler posted a personal essay about her time at Uber, writing that she was propositioned by her manager on her first day with an engineering team. She reported the manager to human resources but was told he would get a lecture and no further punishment because he was a “high performer,” she wrote.
Outside investigations led to the firing of 20 people. Former Attorney General Eric Holder conducted one of the probes, finding that the male-dominated Uber didn’t have basic policies to protect workers from harassment.