Uber Founder Resigns Under Pressure As CEO, Published Report Says

Pablo Tucker
June 21, 2017

Uber's founder Travis Kalanick has resigned as the company's CEO.

Last week, Kalanick said one of the reasons for taking a leave of absence was the recent death of his mother.

Kalanick's decision "was a surprise to everyone", a second Uber spokesman said.

They then obtained a letter in which Kalanick announced his resignation, titled: 'Moving Uber Forward'. Kalanick will, however, stay on the company's board.

The investors who have been thoroughly shaken by the number of embroiling controversies that have been brought against Uber in the past few months. He has also said, following a recorded outburst on an Uber driver, that he needed to revaluate his position as CEO and "grow up".

Since then, Uber's board has adopted recommendations following an investigation led by the law firm of former USA attorney general Eric Holder, who was retained to look into Uber's culture and practices.

The CEO of Uber has been given his marching orders from the company's biggest shareholders.

In a memo, Kalanick told employees about his decision.

Earlier this year, Uber was revealed to have a workplace culture that perpetuates sexual harassment and discrimination. The U.S. Justice Department is investigating Uber's past usage of phoney software created to thwart local government regulators who wanted to check on whether Uber was carrying passengers without permission. The company began searching for a chief operating officer. Kalanick will remain on the board.

But its reputation has suffered over the harassment reports, and the company has also faced challenges to its labor and competition practices, as well as a lawsuit from Google's parent company over its self-driving vehicle program. Though the driver was convicted in 2015, Kalanick and other executives became convinced the crime was a set up by a local rival, former employees said.

The investors made their demand for Mr. Kalanick to resign in a letter delivered to the chief executive.

- February 28: A video emerges of Kalanick arguing with an Uber driver. But Uber's ownership and voting structure made it hard to oust him.

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