Uber Founder and CEO Travis Kalanick resigned under investors pressure

Founder and CEO of Uber Travis Kalanick resigned from the company under investor’s pressure. Last week Travis said that he would take an indefinite leave of absence, but the other shareholders’ revolt made it difficult for him to stay at the Company.

Travis Kalanick CEO of Uber has resigned under investors pressure

On Tuesday, five of the Major investors demanded that the CEO resign immediately. The investors included one of Uber’s biggest shareholders, the venture capital firm Benchmark, which has one of its partners, Bill Gurley, on Uber’s board.

The people with the knowledge of the situation said that the chief executive received the letter from the investors demanding that he step down as CEO while he was in Chicago.

The letter was later obtained by the New York times. In the letter titled, “Moving Uber Forward”, the investors wrote to Mr. Kalanick that he must immediately leave and that the company needs a change in leadership. The 40-year-old CEO consulted with the Uber Board Members. The discussion lasted very long, with Mr. Kalanick’s final decision that he would step down, but will reportedly stay on Uber’s board and still controls a majority of voting shares.

“I love Uber more than anything in the world, and in this difficult moment in my personal life, I have accepted the investor’s request to step aside so that Uber can go back to building rather than be distracted by another fight.”, he said in a statement to the Times.

“ Travis has always put Uber first”, said the Uber’s board in a statement and that this decision is the sign of his devotion and love for Uber. They also said that his stepping down as chief executive would give company “the room to fully embrace this new chapter in Uber’s history”, and also, this would give him time to heal from his personal tragedy. “We look forward to continuing to serve with him on the board”.

Early this month Eric Alexander, the president of business for Uber Asia Pacific, was fired over his mishandling of the rape victim’s medical records, and Emil Michael, senior vice-president for business, departed amid pressure from the board of directors.

Over 20 other employees were also fired over incidents of harassment, retaliation, discrimination, and bullying, dozens more were disciplined and 57 complaints remain under investigation by Holder’s law firm, Perkins Coie.

Other executives who have left Uber this year include President Jeff Jones, senior vice-president of engineering Amit Singhal, head of policy and communications Rachel Whetstone, vice-president of Maps Brian McClendon, vice-president of product and growth Ed Baker and head of finance Gautam Gupta.

 

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