Brief: Uber CEO Travis Kalanick resigns

Uber CEO Travis Kalanick. Photo credit: TechCrunch.

The news:

• Embattled Uber CEO Travis Kalanick has resigned from his post, The New York Times reports.
• Kalanick reportedly handed in his resignation notice a matter of hours after five of the company’s major investors – including VC firm Benchmark – wrote to him demanding that he step aside.
• In a letter titled “Moving Uber Forward,” the investors stated that the company needed a change in leadership and requested Kalanick’s immediate departure. Kalanick will apparently remain on Uber’s board of directors.

Why it matters:

• Uber has had a tumultuous few months. The ride-hailing company has attracted negative headlines over a variety of issues, including allegations of sexual harassment and misconduct, as well as repeated complaints that it has mistreated or underpaid its drivers.
• Kalanick went on leave earlier this month to deal with a family bereavement and to reflect on Uber’s work culture troubles

What other reports say:

• Facebook’s COO Sheryl Sandberg will be approached to replace Kalanick, though it looks like she might say no. Disney COO Tom Skaggs and former Yahoo CEO Marissa Meyer are the other candidates.
• Kalanick’s ouster from Uber was “largely motivated by shareholders’ concerns that Kalanick wouldn’t be able to hire a CEO-caliber’ executive as chief operating officer who would stabilize the company and keep Kalanick in check,” reports The Information (paywall). He’s known as a micromanager involved in every aspect of the company. Even though he was on a leave of absence, he was still in constant contact with executives and even interviewed candidates for management positions.
• Kalanick could’ve learned a great deal from Didi Chuxing president Jean Liu. “Her dealmaking acumen and collaborative approach to competition is also the antithesis of former Uber CEO Travis Kalanick’s aggressive, take-no-prisoners style of business,” writes Quartz.
• The change in leadership at Uber could be a boon for its various regional rivals, like Ola and Grab, at least in the short run. “The change at the top could force Uber to cut its aggressive spending aimed at gaining market share,” analysts tell LiveMint.