Brief: Uber board considers revised role for embattled CEO Travis Kalanick

Uber co-founder Travis Kalanick in Hyderabad in December 2016. Photo credit: Uber India.

The news:

• Uber’s board of directors reportedly met on Sunday to discuss the findings of an internal probe into alleged harassment and mismanagement at the company.
• The board is considering “sweeping changes to the company’s management practices” in light of the findings, with a possible personnel shake-up that could even affect CEO and co-founder Travis Kalanick.
• Reuters suggests Kalanick might remain in a revised CEO role with narrower responsibilities and subject to stronger oversight, or may be moved to a new position altogether.

Why it matters:

• Amid growing competition from globally and regionally focused ride-hailing companies, Uber has sought to shake off its “frathouse culture” image in recent weeks by hiring an organizational transition specialist and by commissioning two internal investigations.
• A reduction of Kalanick’s authority as CEO, or his removal from the post, would be seen in some quarters as a significant step towards achieving this goal. Back in February he attracted controversy after video footage emerged of him arguing with an Uber driver over pricing. He was criticised in 2013 for sending a memo to Uber employees that flippantly suggested they refrain from sex with their line managers.

Source: Reuters.