US

Uber CEO Resigns After Shareholders Revolt

Uber CEO and co-founder Travis Kalanick resigned Tuesday after the ride-sharing giant’s shareholders lost confidence in his ability to move the company forward.

Kalanick stepped down after a group of five major investors sent him a letter, obtained by The New York Times, early Tuesday demanding his immediate resignation.

The letter, entitled “Moving Uber Forward,” was delivered to Kalanick in Chicago and demanded an immediate change in leadership. Kalanick agreed to turn over the reins after lengthy discussions with investors but he will remain on the firm’s board of directors.

“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.

Kalanick’s resignation closely follows the June 13 presentation of former Attorney General Eric Holder’s report on Uber’s workplace culture. Holder’s investigation was prompted by allegations of workplace sexual harassment that resulted in the firing of 20 employees.

In addition to the allegations of a hostile work environment, the company, currently valued at nearly $70 billion, is facing an intellectual property lawsuit from Waymo, a self driving car company operating under Google’s parent company.

The group of shareholders, which together account for roughly 40 percent of the firm’s voting power, also demanded the addition two “truly independent directors” to fill two vacant board seats and the immediate hire of an experienced chief financial officer.

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