Travis Kalanick who founded Uber has resignedTravis Kalanick, who founded Uber in 2009, resigned on Tuesday as the company chief executive officer, after a shareholder revolt made it untenable for him to stay on at the company, The New York Times has reported.
Mr. Kanalick had helped build the ride-hailing service into a transportation colossus. Every month about 40 million people take an Uber ride. With over 1.5 million drivers around the world and more than 9000 staff, more people receive a paycheck from Uber than any other company in the world, except perhaps Walmart and McDonald’s.
The New York Times said Mr. Kalanick’s exit came “under pressure after hours of drama involving Uber’s investors, according to two people with knowledge of the situation, who asked to remain anonymous because the details are confidential”.
Mr. Kalanick went on leave a few days ago even as the company battled several scandals and workplace ethical issues. But his resignation comes as a surprise.
“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 a statement reported by the New York Times.
Reuters said “Kalanick, 40, has faced increased scrutiny in recent weeks following an investigation into the culture and workplace practices at a company he helped start in 2009 and is now the world’s most highly valued startup.
“But it was a chorus of demands for changes at the top from some of Uber’s biggest investors that ultimately 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, as well as investors First Round Capital, Lowercase Capital, Menlo Ventures and Fidelity Investments, all pressed Kalanick to quit.
“They delivered a letter to Kalanick while he was in Chicago, the New York Times reported, citing people with knowledge of the situation. The newspaper, which was first to report Kalanick’s resignation, said he would remain on Uber’s board. (nyti.ms/2soTB79)
“Kalanick’s decision “was a surprise to everyone”, a second Uber spokesman said.
“Kalanick’s departure comes after a lengthy investigation led by former U.S. Attorney General Eric Holder.
“Uber hired Holder to look into its culture and workplace practices after a female former employee publicly accused the company of what she described as brazen sexual harassment.
“Privately held Uber has been valued at $68 billion, shattering the norms for Silicon Valley startups, and the company embodied many of Kalanick’s aggressive and pugnacious personality traits.
“Following the release of recommendations stemming from the Holder investigation, which called for increased controls and oversight at the company, Kalanick said last week he would take a leave of absence for an undetermined period.
“He said he needed space to grieve the death of his mother, who died recently in a boating accident in which his father was also seriously injured, and to work on his leadership skills”.