Uber CEO Travis Kalanick Resigns. Kind Of

Ivan Schwartz
June 26, 2017

Travis Kalanick, chief executive at the ride-hailing tech giant Uber, has announced he will be stepping down from his current position following months of crisis at the company.

On Tuesday, the founder and CEO of successful tech and transportation company Uber officially resigned from his position, a decision which came in response to calls for his resignation from numerous company's investors. The investors demanded Kalanick's resignation in a letter delivered to him while he was in Chicago.

The letter was titled, "Moving Uber Forward" and discussed the need for new leadership formally.

Four months after one woman's complaint of sexual harassment at Uber, CEO Travis Kalanick is forced to resign. He will remain on the board of directors and still has control of a majority of Uber's voting shares.

In a statement, Kalanick said his resignation would help Uber go back to building "rather than be distracted with another fight", an apparent reference to efforts on the board to remove him.

Uber has faced ongoing scrutiny over allegations of workplace harassment, a criminal probe into its attempts to evade regulators, a lawsuit over trade secret theft brought by Waymo (its competitor in the self-driving auto industry), and a lawsuit brought by a woman who alleges her medical files were improperly shared by Kalanick and other executives. He will remain on the board of directors. People love the product itself, and they see companies like Uber as the future.

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Earlier in February 2017, a former engineer released a detailed complaint concerning sexual harassment within the company. Uber insiders may also be considered, including board member Arianna Huffington.

What followed was a mountain of scandals, including a criminal investigation into Uber's use of technology to evade regulators in certain cities and a trade secrets lawsuit filed by Alphabet's self-driving division, Waymo.

But outside experts said the CEO had to go.

An Uber spokesperson confirmed to TechCrunch that Kalanick has actually stepped down.

Michael Ramsey, an analyst with the technology consulting firm Gartner, suggested this may not be the best time for Kalanick to leave.

"If the board just plays it safe, they may win the battle (a few good press cycles), but they'll lose the war (a truly great, innovative company)", Tusk says.

Other reports by GizPress

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