In what can only be termed a shocking development, Uber CEO Travis Kalanick has resigned from his position, giving in to a strong demand from top investors who collectively own more than a quarter of the company. Uber has been embroiled in controversy after controversy over several issues – legal and otherwise – and this ouster is a clear sign that the company wants to move in a different direction, while cleaning up its corporate image at the same time.
The biggest problem right now is that Uber is Travis Kalanick, and vice versa. How can a company that grew to a nearly $70 billion valuation on the culture that Kalanick built progress without the very man who took it to where it is right now?
That seems to be the least of Uber’s problems, however, as investor pressure prevailed. In a letter to Kalanick while he was in Chicago, several key investors outlined why a change in leadership was in order. After consulting with an Uber board member and discussions with several investors, Kalanick decided to tender his resignation as CEO of Uber.
Both sides have issued formal statements, but they’re too formally worded to mean anything other than “we’ll miss you, see you around.” However, Kalanick will remain on the board of the company since he still controls the majority of voting shares. The day-to-day operations will be carried out by a committee of more than 10 executives.
Adding to the problems that Uber has collected over the past several months, they now have a new one: to find a CEO befitting Uber’s aggressive growth reputation. Kalanick could be involved with the selection process, but it’s unlikely that he’ll have the final say.
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Source: NY Times
