Uber Founder Travis Kalanick Resigns as C.E.O under investor pressure

Uber is considered one of the leading ride-hailing service. According to the latest news the CEO of Uber stepped down from the post. Mr. Travis Kalanick was the founder member of Uber.

When Uber was first introduced in 2009, he became the CEO. The decision was the result of the “shareholder revolt”. According to the media some of the most important and prominent investors revolted against the CEO.

A spokes person from Uber confirmed to the media that Uber Founder Mr. Kalanick stepped down from the post.

According to the report, “Five of the Ubers most prominent share holders, including Benchmark, wrote a letter titled “Moving Uber Forward,” which recommended that the CEO step aside immediately.”

As a result Uber Founder Kalanick agreed to resign from the post.

While talking to media, Kalanick said, .

“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.”

When asked about further details on the resigning the board told the media that Kalanick will continue to be a part of Uber’s board of directors.

According to the board,

“Travis has always put Uber first. This is a bold decision and a sign of his devotion and love for Uber.  By stepping away, he’s taking the time to heal from his personal tragedy while giving the company room to fully embrace this new chapter in Uber’s history. We look forward to continuing to serve with him on the board.”

After former Attorney General Eric Holder reported  about Uber’s toxic company culture last week, Uber Founder Kalanick decides to take a leave of absence from the company.

Kalanick gave the reason of his resigning in the letter to his employees. He stated,

“I need to take some time off of the day-to-day to grieve my mother, whom I buried on Friday, to reflect, to work on myself, and to focus on building out a world-class leadership team.”

The places of  CEO, COO, CFO, CMO and a host of other critical high-level positions  are empty, following months of seemingly endless executive departures.

The decision came as the result of revolt that was initiated by shareholders because of increasing controversies in Uber.

The controversies such as sexual harassment and discrimination in the company were the most important factor that led to this resignation. When the investigation was carried out on such issues about 20 employees were fired.

This is evident that shareholders were mindful of all these activities and thus wanted to stop the controversy by changing the administration.

At the point Uber needs to be more stable because of tough competition by Careem and other ride-hailing services. Such steps are taken to lead the team to success.