Travis Kalanick has resigned his post as CEO of Uber following investor pressure, according to a report from the New York Times.
This came after five of the company’s investors sent Uber a letter saying that he must resign from the company he founded in 2009. Benchmark Capital, First Round Capital, Lowercase Capital, Menlo Ventures, and Fidelity Investments signed onto the letter, according to the report.
The news shortly follows Kalanick’s announcement he would be taking a leave of absence, based partially on recommendations from a report on the company’s culture. However, that wasn’t enough for the investors signed to the letter. According to the NYT report, those investors control roughly 40 percent of Uber’s voting rights.
It’s a reversal of fortune for Kalanick. Earlier this year, it seemed he had the support of his company’s board of directors, but that has apparently run out.
June 5th: The AI Audit in NYC
Join us next week in NYC to engage with top executive leaders, delving into strategies for auditing AI models to ensure fairness, optimal performance, and ethical compliance across diverse organizations. Secure your attendance for this exclusive invite-only event.
Uber has been caught up in a series of controversies over the past several weeks, including an investigation into sexual harassment that was kicked off after a former employee publicly detailed a number of incidents during her time at the company. In addition, Uber is facing scrutiny for a program that was designed to help its drivers evade law enforcement, its acquisition of a passenger’s medical records with intent to discredit her after she reported being raped by a driver, and a variety of other scandals.
On a personal front, Kalanick’s mother recently died in a boating accident that also injured his father.
The news throws Uber’s search for a COO into question. The company had been searching for an executive to advise Kalanick amidst its scandals, but it’s not clear who will permanently take over the chief executive spot in his absence.
