Travis Kalanick resigned from his role as Uber’s CEO Wednesday morning, June 21 after months of controversies and pressure from the company’s investors.
Travis Kalanick resigned from his role as Uber’s CEO Wednesday morning, June 21 after months of controversies and pressure from the company’s investors.
The Associated Press reports Uber’s board confirmed the move while saying its former CEO will take time off after his mother was killed in a boating accident and to give the company room to embrace „this new chapter.“ It has not been made clear who will replace the 40-year-old man who helped start the ride-hailing company in 2009.
In a statement obtained by the New York Times, Kalanick said that he realized the company needed a change at the top and that he will remain on its board of directors.
„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, “ he said in the statement.
Wednesday’s move comes after months of controversies under Kalanick including sexual harassment in the workplace, trade secret theft allegations, a federal investigation and even a video of the former CEO berating an Uber driver.
The Justice Department remains investigating the ride-hailing company’s alleged use of phony software designed to get around carrying passengers without permission, A. P. reports.
„When you’re at war with customers, employees, service suppliers, you can’t build up a business model and Kalanick was at war with everyone, “ Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen, told A. P.
„There is no business model in being at war.“
One of the key factors is the 40-year-old CEO’s resignation was when a former engineer penned a personal essay about the sexual harassment she faced at the company. Susan Fowler posted the essay in February, in which she said her manager propositioned her on her first day with the engineering team.
„When I reported the situation, I was told by both HR and upper management that even though this was clearly sexual harassment and he was propositioning me, it was this man’s first offense, and that they wouldn’t feel comfortable giving him anything other than a warning and a stern talking-to, “ she said.
„Upper management told me that he „was a high performer“ (i.e. had stellar performance reviews from his superiors) and they wouldn’t feel comfortable punishing him for what was probably just an innocent mistake on his part.“
A top Uber executive, Amit Singhal, also left the company after he failed to disclose that the reason he left Google was because of sexual harassment allegations.
An Uber investigation resulted in the firing of 20 people, and former Attorney General Eric Holder said the male-dominated company didn’t have basic policies to protect against harassment.
Kalanick was forced resigned from President Donald Trump’s business advisory council after the company received flak after a widespread rider boycott. In addition, Waymo, Google’s self-driving car project, sued Uber while claiming betrayal and espionage.
After taking an Uber ride in February on Super Bowl Sunday, Kalanick was recorded verbally berating one of his drivers who was complaining about falling fares.
„You know what? Some people don’t like to take responsibility for their own s***. They blame everything in their life on somebody else, “ he yelled at the driver before he slammed the door as he and the two women flanking him exited the vehicle. „Good luck.“
A. P. reports that several top-level managers and employees have left the company in the past year, which includes the president and chief financial officer. Industry insiders have claimed the only way to take a step forward from world’s largest ride-hailing provider to a sustainable company was for Kalanick to step aside.
