Uber founder Travis Kalanick resigns as CEO

by Dramelin 5:30 AM 0 comments

But on Twitter, Mr.
Gurley of Benchmark, one of the earliest supporters of Mr.
Kalanick at Uber, said of the executive, "There will be many pages in the history books devoted to @travisk — very few entrepreneurs have had such a lasting impact on the world.
Kalanick`s resignation opens questions of who may take over Uber, especially since the company has been so molded in his image.
Kalanick will probably remain a presence there since he still retains control of a majority of Uber`s voting shares.
Taking a start-up chief executive to task so publicly is relatively unusual in Silicon Valley, where investors often praise entrepreneurs and their aggressiveness, especially if their companies are growing fast.
It is only when those start-ups are in a precarious position or are declining that shareholders move to protect their investment.
In the case of Uber — one of the most highly valued private companies in the world — investors could lose billions of dollars if the company were to be marked down in valuation.
Uber, which has raised more than $14 billion from investors since its founding in 2009, has a wide base of shareholders apart from the ones who signed the letter.
Uber`s investors also include TPG Capital, the Public Investment Fund of Saudi Arabia, mutual fund giants like BlackRock and wealthy clients of firms like Morgan Stanley and Goldman Sachs.
In the letter, in addition to Mr.
Kalanick`s immediate resignation, the five shareholders asked for improved oversight of the company`s board by filling two of three empty board seats with "truly independent directors.
" They also demanded that Mr.
Kalanick support a board-led search committee for a new chief executive and that Uber immediately hire an experienced chief financial officer.
Kalanick is stepping down as Uber works to improve its relationships with some of its constituencies.
Earlier Tuesday, the company emailed its drivers, who work as contractors, to let them know they would soon be allowed to take tips, which drivers had not been able to accept previously.
The tipping change was among several new initiatives announced for drivers.
"Over the next 180 days we are committed to making driving with Uber better than ever," the company said.
"We know there`s a long road ahead, but we won`t stop until we get there.