Uber CEO Steps Away Amid Tumult

Image: PHOTO: Travis Kalanick is out as Uber CEO. (photo via Flickr/Adam Tinworth)
Image: PHOTO: Travis Kalanick is out as Uber CEO. (photo via Flickr/Adam Tinworth)
Gabe Zaldivar
by Gabe Zaldivar
Last updated: 3:36 PM ET, Tue June 13, 2017

Uber CEO and co-founder Travis Kalanick announced that he will indeed take an indefinite leave of absence as his company grapples with a year steeped in turmoil.

The New York Times reports the co-founder sent an email to team members but did not specify when he might return, only acknowledging the decision was meant to eventually build a "world class leadership team."

CNBC reports Uber will have at its helm a committee that includes various female executives: "Rachel Holt, manager of North America, Francis Frei, senior vice president of leadership and strategy and Liane Hornsey, chief of human resources."

The decision comes nearly four months after Uber decided to launch its own internal investigation into alleged sexual harassment throughout the company.

The Times explains Kalanick leaves on the same day that former Attorney General Eric H. Holder Jr. released findings of his law firm's investigation into harassment claims and its suggestions on how to proceed.

Among these suggestions was dialing back Kalanick's duties at the company. The firm also thought it best to institute an independent leader and/or oversight committee to continue to monitor management in a transparent and efficient manner.

Liane Hornsey, Uber's chief of human resources, states, via N.Y. Times: "Implementing these recommendations will improve our culture, promote fairness and accountability, and establish processes and systems to ensure the mistakes of the past will not be repeated."

As Kalanick stepped out of the scene he emailed employees. Among the various statements, Kalanick explained he was fully accountable for any tumult that has been experienced these past few months: "The ultimate responsibility, for where we've gotten and how we've gotten here rests on my shoulders. There is, of course, much to be proud of but there is much to improve."

CNBC suggests that paramount among the firm's requests was to institute policies that would drastically change the culture at Uber.

After holding 200 interviews and looking at three million documents, Holder's firm suggested a closer look at management and its practices but also offered simple changes such as "prohibiting consumption of non-prescription controlled substances during core work hours, at work events, or at other work-sponsored events."

Banning alcohol was among 47 recommendations offered that might shift Uber's culture behind the scenes.

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The popular ride-sharing brand recently let 20 of its employees go. However, Kalanick remains its most visible casualty as the company attempts to turn the corner on a horrible year.

The first six months of which have featured a misstep with taxi workers and New York locals during a strike, a swing and a miss with users over its decision to sit on a Donald Trump advisory board and the possibility of an uphill battle for status in Europe.

It remains the most popular ride-hailing app and a go-to for leisure and business travelers alike.

Whether it stays there and welcomes top people in the industry into its fold remains reliant on whether it can indeed learn from its mistakes and push forward.


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