Travis Kalanick, Uber CEO, resigned on Tuesday after intense and pressuring calls from the ride-sharing company’s most prominent shareholders. However, the ex-CEO will remain as a board member of the company.
Kalanick’s Resignation Triggered by Scandals
After a thorough review of practices at the firm and the series of scandals that have happened, not to forget the chains of sexual harassment complaints, Kalanick was said to be taking an indefinite leave of absence. Yet on Tuesday, five major investors demanded for his resignation through a letter.
“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 afterwards.
Recent Uber Controversies
With the recent controversies of Uber, it also prompted the exit of other high-level executives. One of them was Eric Alexander (former head of Uber’s Asia-Pacific business), who was fired after he was able to get hold of medical records of a woman who got raped by an Uber driver back in 2014. Emil Michael also left the company after knowing the incident shared by Alexander.
Also, Uber fired 20 staff as it looks into sexual harassment accusations earlier this month. There have been 215 staff complaints, the farthest was dated 2012.
Another issue lurking around is a court case from Google (Alphabet) regarding an ex-engineer stealing vital trade secrets with relation to autonomous car projects of both companies.
Employee Relations Unit Expansion
The ride-sharing company told reporters also that it will improve its employee relations unit so it can better investigate concerns. It also plans to strengthen its management training as a huge chunk of its current managers have inadequate experience as bosses. It even hired Frances Frei of Harvard Business School to train all of its managers.
It is also into encouraging employees to use its existing confidential helpline to report concerns with a system where complaints can be logged and tracked down for status purposes to refrain the case of Susan Fowler from happening again – where managers and human resources officers failed to punish her very own manager who took advantage of her sexually.
Moving Uber Forward
It was in 2009 when Travis Kalanick helped found Uber. But due to several issues, former U.S. Attorney General Eric Holder was asked to look into the workplace practices and culture of Uber after an issue came out about a former female employee being brazenly harassed sexually.
Five major investors called for the resignation of Kalanick via letter entitled as “Moving Uber Forward.” They revealed in the letter that the company is in a dire need to change its leadership.
Kalanick’s exit came after hours of discussions with the investors.
Reports reveal Travis’ devotion to Uber. His agreement to step down in power exposes his commitment, dedication and love for Uber. The recent petition to remove Kalanick from power just shows that the recent scandals are becoming a huge threat to the business and investors felt the need to do something about it. If it did not happen, it can threaten Uber’s stability in the long run.
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