Uber Co-Founder Travis Kalanick Resigns Under Pressure As CEO

Nichole Vega
June 22, 2017

Passengers who use the ride-hailing app Uber will now have the option to tip their driver. Uber's board releases Holder's recommendations, which include removing some of Kalanick's responsibilities and replacing Uber's chairman and founder, Garrett Camp, with an independent chairman. "Literally all of us feel like we are just hanging in there, hoping that the new management will continue to keep India as a top priority for Uber, just like the previous top-level management did", said another senior Uber official.

To help Uber grow fast, Kalanick seemed to pick fights just about everywhere.

Kalanick is staying on the board of directors. "There is no business model in being at war". Riders embraced the app-based ride-hailing system as an affordable, easy-to-use alternative to taxis, and still do today.

Uber's board confirmed Kalanick's resignation early Wednesday, saying in a statement that Kalanick is taking time to heal from the death of his mother in a boating accident "while giving the company room to fully embrace this new chapter in Uber's history". The COO role is one of many executive positions that remain unfilled, leaving questions about who will run Uber in Mr. Kalanick's absence. In addition to building Facebook's advertising business, she has also become a leading voice on what companies need to do to boost diversity and improve their culture.

"Appointing a woman would certainly send a strong signal given the recent troubles, and that would be one of the easiest ways to cement a broad cultural shift away from the frat mentality that often characterized Travis Kalanick's tenure", Dawson said.

February 19: A former Uber engineer, Susan Fowler, discloses sexual harassment and sexism claims in a blog post about her year at Uber.

As for what lies ahead, investors have talked about taking Uber public on the stock market.

The surprise leadership shakeup marks a major turning point for Uber as the $70 billion company works to reform its aggressive culture and lay the foundation for an eventual IPO. Starting with their most important internal asset, drivers, Uber will be rolling out a change to its smartphone apps that allows riders to tip drivers.

San Francisco-based Uber Technologies Inc had for years opposed adding a tipping feature to its app despite drivers' arguments the extra money would help compensate for decreasing wages. That's significant, as Paris is where Kalanick is said to have come up with the idea for Uber. The U.S. Justice Department is investigating Uber's past usage of phony software created to thwart local government regulators who wanted to check on whether Uber was carrying passengers without permission.

"People are seeing how much loyalty they can get from their employees when they treat them as human beings", she told Bloomberg Television's Caroline Hyde.

A more extensive report from the law firm of former U.S. Attorney General Eric Holder chastised Uber's leadership and recommended changes that Uber's board adopted. Uber also is reducing the time riders have to cancel a ride to avoid being slapped with a $5 fee from five minutes to two minutes after summoning a driver. There have been lawsuits, allegations of sexual harassment and a profanity-laced outburst by its CEO that was caught on video.

The company has already lost Kalanick's right-hand man, Senior Vice President of Business Emil Michael, following a number of gaffes including his suggestion that the company target a journalist who had been investigating the company. Instead, stakeholders decided running a company in limbo - with a CEO on an indefinite leave of absence and a handful of executives heading the company - wasn't tenable.

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