People have moral agency — money does not. Travis Kalanick was never going to survive as Uber CEO after Eric Holder’s report came out. Today he bowed to the inevitable. As always, it is important to remember why he resigned.
It was not because he created such an appalling and hostile company culture. Rather, it was because that culture started to cost shareholders money as outraged consumers peeled away from the brand and started buying lifts from Lyft in ever-increasing numbers.
The Uber founder resigned as CEO, following pressure from investors. Five of Uber’s major investors delivered a letter to the company yesterday headed “Moving Uber Forward” that demanded Kalanick resign. He got the message.
“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 in a statement provided to The New York Times.
Kalanick will remain on Uber’s board of directors, The Times reports.
Last week Kalanick stood aside, taking “indefinite leave” following months of turmoil for the company. The floodgates were opened when former Uber engineer Susan Fowler published a blog post in February “detailing allegations of harassment, discrimination, and retaliation during her employment at Uber, and the ineffectiveness of the company’s then-existing policies and procedures.”
So far, more than 20 staff have been fired following a broader investigation into 200 harassment claims — including Kalanick’s 2IC Emil Michael.
Uber’s board is now looking for a new CEO.