The embattled founder of the ride-hailing app stepped down in the face of pressure from investors after a tumultuous six months of scandals and stumbles
Uber co-founder Travis Kalanick has resigned from his position as chief executive of the $68bn ride-hailing app following a tumultuous six months of scandal.
Kalanick stepped down in the face of pressure from five of Ubers largest investors, according to the New York Times. Kalanick will, however, stay on the companys board.
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 to the New York Times.
The resignation comes just one week after Kalanick began an indefinite leave of absence amid efforts to bring about wholesale change of Ubers corporate culture. Though Uber had long had a reputation for defying rules and regulations, the company faced a new kind of crisis in February when a former employee published a blog post describing a workplace rife with gender discrimination and sexual harassment.
Uber enlisted former US attorney general Eric Holder to conduct an investigation into the companys workplace culture, the results of which were released last Tuesday. Among a sweeping list of recommendations for reform, the report called for reviewing and reducing Kalanicks role in the company.
During Kalanicks absence, the company was to be led by a committee of executives.
According to the New York Times, the leave was not enough for the group of investors, who own more than a quarter of Ubers stock and account for about 40% of voting share. The investors – Benchmark, First Round Capital, Lowercase Capital, Menlo Ventures, and Fidelity Investments – demanded Kalanicks immediate resignation in a letter delivered to him earlier on Tuesday.
Uber continues to face challenges on multiple fronts. The embattled company is currently squaring off against Google parent company Alphabet in an intellectual property lawsuit that could pose an existential threat to Ubers future. Uber is also under federal investigation for its use of a program designed to deceive law enforcement in cities where its service was barred.