SAN FRANCISCO— Uber is curbing the power of former CEO Travis Kalanick and taking on Japan’s SoftBank Group as a major new investor as the ride-hailing service tries to recover from internal strife and a myriad of legal headaches. For now, the job of Kalanick’s…
SAN FRANCISCO (AP) — Uber is curbing the power of former CEO Travis Kalanick and taking on Japan’s SoftBank Group as a major new investor as the ride-hailing service tries to recover from internal strife and a myriad of legal headaches.
The changes adopted unanimously Tuesday by Uber’s 11-member board strip Kalanick and other early investors of the extra voting power they were originally granted to control the privately held company’s direction, according to two people briefing on the board vote. The people asked not to be identified because the board’s decisions are considered confidential.
Kalanick, who stepped down as Uber’s CEO in June under pressure from irate investors, was among the directors who approved putting everyone on equal footing. He agreed to the provision weakening his power partly to block another proposal that would have prevented him from ever returning as Uber’s CEO, according to one of the people.
For now, the job of Kalanick’s successor — Dara Khosrowshahi — appears safe. In another vote, the board agreed to pursue an initial public offering of Uber’s stock by the end of 2019. Before an IPO, two-thirds of the board would have to approve a switch in CEOs, a provision designed to prevent Khosrowshahi’s ouster, according to one of the people.
