Uber CEO Kalanick resigns under pressure

Uber's embattled chief executive Travis Kalanick has
resigned, yielding to pressure from investors seeking to
clean up a toxic corporate culture at the fast-growing
ridesharing group.
Kalanick had announced an indefinite leave of absence
a week earlier following the release of a report on
Uber's workplace troubles by former US attorney
general Eric Holder.
His departure announced late Tuesday caps a rocky
period for the global ridesharing giant, which has been
roiled by reports of a cutthroat workplace culture,
harassment, discrimination and questionable business
tactics to thwart rivals.
"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.
The Uber board of directors welcomed the "bold
decision," say it marked a "sign of his devotion and
love for Uber."
Kalanick, who has been the driving force behind
Uber's massive global expansion and whose brash style
had made him a liability, will remain on the board
with a large voting stake in the company, whose $68
billion valuation makes it the world's largest venture-
backed startup.
The pioneering company has been facing pressure to
rein in a no-holds-barred management style led by
Kalanick and to reform its workplace culture.
Investors had been growing impatient with Kalanick
despite a pledge to implement reforms.
In a letter, titled "Moving Uber Forward," key investors
told Kalanick that he must immediately leave as part of
a necessary change in leadership, The New York Times
reported.
- 'Lasting impact' -
Following Kalanick's announcement, early Uber
investor Bill Gurley of Benchmark Capital offered
praise for the departing CEO.
"There will be many pages in the history books
devoted to @travisk - very few entrepreneurs have had
such a lasting impact on the world," Gurley tweeted.
Jan Dawson of Jackdaw Research said in a blog post
that Kalanick's resignation "leaves an enormous
vacuum at the top of the company," but that "this is all
for the best long term, even if it's messy in the short
term.
Uber has not only disrupted the local transport
industry in dozens of countries. It's also been investing
in autonomous driving technology, and has provoked a
lawsuit from the former Google car unit now called
Waymo that accused Uber of stealing trade secrets.
Last week, Kalanick said one of the reasons for taking
a leave of absence was his mother's recent death.
Kalanick's fiery character helped Uber's expansion in
the face of opposition from regulators and established
taxi operators, but it also got him into trouble.
As Uber faced a series of embarrassing disclosures, he
was captured on a dahscam berating and cursing at a
driver who had complained about earnings, in a video
that went viral.
His resignation comes a day after the company
emailed its US drivers to say it would allow passengers
to tip them, starting in three cities and rolling out
across the country by the end of July. Kalanick had
reportedly been opposed to tipping.
- Questionable practices -
Before Kalanick's departure, Uber had been shaking up
its ranks.
The San Francisco-based firm parted ways with its
number two executive, Emil Michael, who had
reportedly been linked to a number of questionable
practices at Uber, including a visit to a South Korean
escort-karaoke bar and an attempt to dig up
embarrassing information on journalists.
Previously, Uber said it had fired 20 people after
examining 215 claims of discrimination, harassment,
unprofessional behavior and bullying.
Uber this month released a 13-page document calling
for major reforms at the company based on a probe led
by Holder, who investigated allegations of misconduct
and ethical lapses.
The report, recommendations of which were adopted
by the board, said Uber "should reformulate its written
cultural values" to "reflect more inclusive and positive
behaviors."
The reforms should focus on "tone at the top, trust,
transformation and accountability," the report added.
It said Uber should also consider installing an
independent board chair, "to serve as an independent
check on Uber's management" and to show it is taking
reforms seriously.
The Holder report called for "an ethics and culture
committee" to oversee Uber's efforts to maintain
ethical business practices.