Removal of CEO a perfect change towards stronger Uber
KUCHING: News of Uber co- founder Travis Kalanick resignation from his post as chief executive officer (CEO) on June 21 is a sign of changing times for the game-changing app, with analysts at Frost & Sullivan pegging this to be a chance for the group to regain strength.
On one end, shareholders are enthusiastic that Kalanick has finally stepped down from his leadership role at Uber as it signals a possible end to the current version of Uber that has been embroiled in drama over the past few years.
The drama reel includes several allegations of sexual harassment, sexist human resource practices, the covert use of law- enforcementevading software, illegal obtainment of medical records of a user that was raped by an Uber driver, lawsuits by drivers, intellectualproperty theft suits, and allegations of bullying tactics used to penetrate foreign markets and its local taxi industry.
The numerous issues found in Uber were said to have come from the company’s toxic culture.
In a statement released by market research company Frost and Sullivan, it highlighted that a particular incident cemented public perception of where that culture was coming from.
“The release of a leaked video, showing Kalanick berating an Uber driver who complained to him about pay, directly pointed fingers at the attitude and maturity of the former CEO,” said Frost & Sullivan associate director Animesh Kumar in a statement.
“The video spurred global commentary on the personal character and ethics of Kalanick and as a result forced the hand of Uber investors to request his resignation last week in order to quell the negative publicity.
“There is no denying the fact that Travis Kalanick is an asset and has been a driving force behind the success of Uber.
However at the same time, his personality, the work culture that developed under his leadership as well as the recent controversies has negatively impacted the image of the company.”
Thus, Animesh said Uber needs to change the image among the employees and drivers and has the perfect opportunity to do so.
“By bringing in leaders who are able to create a healthy work culture and are also growth- oriented, Uber would be able to put the controversies in the past and march ahead,” he opined.
Agreing on his point, Kalanick himself expressed the move of his step down as a correct step for the company as he was quoted saying in statement obtained by The New York Times, “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.”
However, not everyone was convinced that the move was a right one as media outlets around the word reported on an alleged 1,000 strong signature petition to reinstate Kalanick being circulated amongst Uber employees.
Addressing this alleged call by Uber employees for Kalanick’s return, Animesh pointed out that Kalanick has not disappeared from Uber itself but has just taken a lesser direct role in its future growth.
“He will still own a major portion of the company and will remain as a board of director.
“Moreover, due to the structure, Kalanick and other co- founders have a high number of ‘super-voting shares’.
“So he has clearly not stepped away from Uber but has just stepped aside.” While some might find comfort in this, some stakeholders are also questioning the point of his resignation if Kalanick will continue to hold power in making decisions for the group.
To this, Animesh argues that Kalanick’s involvement in Uber’s future decisions and directions may not be detrimental at all as he has experienced immense success in penetrating and creating a foothold in hostile markets with high barrier of entries due to opposition from local taxi unions and industry regulators.
In addition, the potential presence of a changed and mature Travis Kalanick in the future could also significantly contribute to the emergence of a stronger Uber2.0 said Animesh.
Looking forward for Uber’s future, Animesh reports that the its first goal will most likely be to assembly a new leadership team to transform Uber into a new and improved Uber 2.0.
“Following an assessment by former US attorney general Eric Holder, Uber’s management and investors felt that there is a need of significant changes and with Kalanick’s resignation, Uber now needs to fill three significant positions in the top management – CEO, chief operating office and chief financial officer.”
The release of a leaked video, showing Kalanick berating an Uber driver who complained to him about pay, directly pointed fingers at the attitude and maturity of the former CEO. Animesh Kumar, Frost & Sullivan associate director