The Uber CEO resignation comes after a lot of controversies engulfing the organization. Travis Kalanick was one of the founders of the company back in 2009. He helped the company to reach its current level of success, making it a global brand across continents.
Pressure Behind Uber CEO Resignation
Media reports point to the pressure which led to Uber CEO resignation. There were five major investors behind the demand for the CEO to step down from his role. The investors sent a letter to Travis Kalanick “Moving Uber Forward.” The letter demanded him to immediately leave the post as the company required a change in the leadership. The investors also wanted him to go instead of just taking an indefinite leave. They stated that they had invested millions of dollars into the company.
The company’s recent valuation values it at $70 billion.
Furthermore, Travis Kalanick did consult with one of the Uber’s board members. It took some lengthy discussions of investors with the CEO to persuade him to part ways. However, Travis Kalanick will remain as one of the board members.
Travis Kalanick’s Reaction on the Resignation
Travis Kalanick said that he loves the company more than anything else. Furthermore, he stated that he was facing a difficult moment in his personal life and would accept the request made by the investors. Lastly, Travis Kalanick wants the company to grow instead of distracted by fights.
Carefree Work Culture
Uber never did anything to tackle the issues of workplace harassment. A female Uber Engineer who had left the company shared the difficulties she faced during her time at the company. This one revelation led to several other female employees coming out with their problems.
Legal Battle with Waymo
Similarly, the company is embroiled in a legal battle with Waymo. The company is fighting a case over intellectual property rights. Waymo is a self-driving car business operated by Google. The company had to fire earlier Anthony Levandowski one of the engineers. The engineer, an ex-Googler allegedly stole trade secrets from Google.
Use of Greyball Tool
The company is also under investigation for the use of Greyball tool software. The software was used by the firm to deceive regulators who were trying to shut down its service. The tool helped the company enter the new markets where it could not legally operate. The software was a fake version of its application to avoid law enforcement agencies from clamping down on its original mobile application.
Apple’s Serious Problems with Uber’s Management
Uber’s engineers had devised a way to identify and tag iPhones secretly. The identification would keep on working even after the iPhone users have deleted the application from their smartphones. This fraud maneuver directly violates the privacy guidelines set by Apple. If Apple had decided to drop off the Uber app from its App Store, the company could have lost millions of customers.
Travis Kalanick had always believed in achieving his business goals by any means necessary. He took risks like disregarding the rules and regulations of countries, ignoring transport safety regulations, exploiting legal loopholes, and taking unfair business advantage wherever possible.