Uber CEO Travis Kalanick resigns after pressure from investors

Five major Uber investors called for Kalanick's resignation after months of blunders.

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[matthewslyman]

Travis has always put Uber first.

Which ironically, is a big part of the problem. To put Uber first in the long term, would have required prioritising integrity to basic principles like honesty, fair competition, and legal compliance; and duty-of care toward drivers and customers. Can Uber — a company created from the ground up without Google's aversion to outright evil — be fundamentally reformed at this point? Or will the changes be cosmetic?

 

[DanNeely]

Well, that's one down; however many thousands of employees Uber has to go.

 

[RobTheRenderer]

The question is simple: does Uber continue to flaunt the law when it suits them, to buy off government (e.g. Texas) to get their way, to treat their employees^h^h^h^h^h^h^h^h^h independent contractor drivers with scorn, or do they actually pretend to be responsible?

 

[enilc]

Time for the grown-ups to take over? Maybe they can turn the ship away from the rocks before it's too late.

 

[Nutrimentia]

It's like a real life season of Silicon Valley.

 

[Dr_Lex]

The BBC news website has published a run down of recent Uber scandals to commemorate TK's resignation -
http://www.bbc.co.uk/news/technology-40352868

 

[Sarty]

The question is simple: does Uber continue to flaunt the law when it suits them, to buy off government (e.g. Texas) to get their way, to treat their employees^h^h^h^h^h^h^h^h^h independent contractor drivers with scorn, or do they actually pretend to be responsible?

The turd is relinquishing day-to-day control of operations, but I find it almost impossible to envision a wholesale change in corporate culture so long as he holds a controlling interest.

 

[Pusher of Buttons]

Kind of feel bad for the guy....has to leave the company he created with nothing but a few billion dollars and sulk back to one of his mansions. Doesn't seem right to gloat while I get the privilege to come to work today while he's stuck sitting at home getting chlamydia from a bus full of "former employees".

 

[joh06937]

It's fairly unusual for a tech startup's CEO to be ousted by the board—doubly so for Uber, which from a shareholder's perspective has been massively successful with a valuation of around $70 billion.

On the one hand, I really want it to be the case that the board actually wants to be a part of a decent company, damn the profits.

On the other hand, this is probably driven by the scare of losing profits due to all of the recent issues Uber has had...

 

[charles222]

For what it's worth I'm an Uber driver. (Hiss and boo all you like )

Yesterday and the day before we all got emails detailing ways they're planning to change the Uber-driver relationship; tips and Uber making insurance for when we drive for them are two big ones, along with more pay in general and some other odds and ends.

 

[0bliv!on]

Not too surprising the recent negative publicity the company has been receiving, and he's certainly the most prominent public figure and so makes for the most useful PR sacrifice.

 

[solomonrex]

It's like a real life season of Silicon Valley.

It seems that large swaths of America have become self-parodying, which probably isn't a good sign.

 

[shread]

If Kalanick controls a majority of the voting shares, how do minority holders force him out? Please educate me.

 

[Justin Credible]

Kalanick will remain on Uber's board of directors, and he still controls a majority of the company's voting shares; he'll still be a key player in future decisions, including the hiring of a new CEO.

My golden parachute! DON'T forget about my golden parachute i'm going to get for leaving the CEO role!!!

 

[pkirvan]

Travis has always put Uber first.

Which ironically, is a big part of the problem. To put Uber first in the long term, would have required prioritising integrity to basic principles like honesty, fair competition, and legal compliance; and duty-of care toward drivers and customers. Can Uber — a company created from the ground up without Google's aversion to outright evil — be fundamentally reformed at this point? Or will the changes be cosmetic?

It seems pretty clear that the culture is a toxic hellstew. Those kinds of places don’t usually get better. I agree with you that Uber was evil from the start, unlike Google, but the Google of today has definitely made peace with evil as evidenced by investing a billion dollars in Uber which then used the money to pay for stolen Google secrets. Evil and self-destructive. That’s Google today.

 

[Digital Dud]

As if Uber isn't representative of the same culture at countless tech startups in the valley.

 

[Snarky Robot]

I guarantee that these large investors absolutely do not want "truly independent" directors. They want them independent of Kalanick, certainly, but not independent of their own interests. Which isn't necessarily bad, of course, but the idea they want "independent" directors is silly. They want directors looking out for them. Of course, I expect major investors have a large incentive to fix the disease rotting Uber out, so their directors will want to push for people who can move the company back to a more normal slightly sordid money-driven corporation rather than the dudebro's first capitalist-libertarian nightmare that it became.

Truthfully though, even stepping away can give the perception of altruism while really being a purely selfish move. If the stock and value recovers from the current scandals, it only helps Kalanick.

Who knows, maybe they'll take a look at the way they pay their workers and say "you know, this whole tipping scheme is just a way to wash our hands of responsibility" and backtrack. One hopes.

 

[kisunssi]

You're never going to be able to hire a CEO with the same drive...

He's probably planning an app for that; hire a cheaper, gig-economy CEO with drive - for less cash...

 

[DoomHamster]

Kalanick will remain on Uber's board of directors, and he still controls a majority of the company's voting shares; he'll still be a key player in future decisions, including the hiring of a new CEO.

So he's moved from the position of Obvious Giant Douchebag Driving the Company to that of Shadowy Less Obvious Douchebag Pulling Levers Behind the Curtain.

Nice.

P.S. Things aren't any better behind the curtain.

 

[Bender0x7D1]

It's fairly unusual for a tech startup's CEO to be ousted by the board—doubly so for Uber, which from a shareholder's perspective has been massively successful with a valuation of around $70 billion.

On the one hand, I really want it to be the case that the board actually wants to be a part of a decent company, damn the profits.

On the other hand, this is probably driven by the scare of losing profits due to all of the recent issues Uber has had...

Damn the profits? Uber doesn't have any profits.

 

[KurtisMayfield]

For what it's worth I'm an Uber driver. (Hiss and boo all you like )

Yesterday and the day before we all got emails detailing ways they're planning to change the Uber-driver relationship; tips and Uber making insurance for when we drive for them are two big ones, along with more pay in general and some other odds and ends.

First of all I thank you for your service on the front line of the gig economy.

How do they do all those things and make a profit??

 

[jhodge]

For what it's worth I'm an Uber driver. (Hiss and boo all you like )

Yesterday and the day before we all got emails detailing ways they're planning to change the Uber-driver relationship; tips and Uber making insurance for when we drive for them are two big ones, along with more pay in general and some other odds and ends.

No hissing and booing, but I am curious for your perspective on introducing tipping in the app.

As a customer, the no-tipping policy was a major attraction, because I don't like feeling pressured to leave a tip. And I will feel pressured; I expect that tipping will quickly become the norm, and to not leave a tip will come to be seen as unacceptable, just as it is in a restaurant.

So, when I use Uber, I'll tip, but I'll use Uber a lot less.

EDIT: fixing my broken sentences

 

[Statistical]

It's fairly unusual for a tech startup's CEO to be ousted by the board—doubly so for Uber, which from a shareholder's perspective has been massively successful with a valuation of around $70 billion.

On the one hand, I really want it to be the case that the board actually wants to be a part of a decent company, damn the profits.

On the other hand, this is probably driven by the scare of losing profits due to all of the recent issues Uber has had...

Damn the profits? Uber doesn't have any profits.

Exactly. I mean a 'decent' company? The only reason was Uber has any valuation is because it found a quasi legal way to engage in mass exploitation of its employees (I mean independent contractors with all the characteristics of employees but aren't employees).

Even with that mass exploitation they are still losing money hand over fist because rates are highly subsidized. To both become profitable and treat their workforce humanely would require raising rates at least 50% and assumming zero dropoff in users at the new higher rates.

Nobody is on the board of Uber because they are looking for an ethical profitable company. They are just mad at Kalanick because he didn't turn a profit despite being unethical.

 

[waasoo]

The world would never have an Uber if not for the dick that Travis Kalanick. The unfortunate reality of humanity has been the fact that morally repugnant people have built things we cherish later. Pyramids to railroads. Now I am not saying Uber is the 10the wonder of the world but I am talking about their role in destroying the taxi monopoly in most major countries. It could not have been broken by following rules and being conservative. The rest of the transgressions come with the territory.
I think Lee was talking about his experiences in Austin with Uber rivals and that will be story in every market if Uber doesn't change though they have Kalanick to thank for their marketshare.

 

[khoadley]

I think from an investor and business perspective this is a colossal mistake. Infantile behavior aside-Kalanick built this company into a juggernaut from absolutely nothing. You're never going to be able to hire a CEO with the same drive and passion as the original founder. I think these shareholders will end up regretting this coup.

Drive and passion are no recommendations when you're passionate in believing the rules don't apply to you whilst driving off a legal cliff.

Uber's valuation isn't based on their current business, but on a gamble that Uber are the future of transportation. For that gamble to pay off, Uber has to make it into the future, and not bleed to death from a thousand lawsuits and regulatory battles. Right now you'd have to question whether Kalanick is capable of avoiding such fights.

 

[Statistical]

If Kalanick controls a majority of the voting shares, how do minority holders force him out? Please educate me.

The CEO works at the pleasure of the board. There isn't a general shareholder vote on CEO and other executive issues. So Kalanick has only a single vote on the board (although through influence can probably count on more than that).

It is unlikely the investors in question truly forced him out (i.e. had votes in favor of termination among a majority of the board) but rather had enough votes to make Kalanick life difficult enough that he agreed to step down for the best interest of the company*.


* 'Best interests of the company' is a nice way of saying the valuation of the share I own.

 

[iguanarama]

A shame, in terms of raw success, that such moralistic and HR issues happened to go hand-in-hand with some extraordinary growth, supply-demand creation, and cutting through of worldwide regulatory issues.

Who knows if a 'different' Kalanick could have successfully held the reins of all those horses.

 

[Cognac]

Well, that's one down; however many thousands of employees Uber has to go.

Nah, Uber only has a couple of employees. The rest are all independent contractors...

 

[iguanarama]

I think from an investor and business perspective this is a colossal mistake. Infantile behavior aside-Kalanick built this company into a juggernaut from absolutely nothing. You're never going to be able to hire a CEO with the same drive and passion as the original founder. I think these shareholders will end up regretting this coup.

Kalanick did build the company into a juggernaut from absolutely nothing. He also made some colossal mistakes along the way.

 

[DoomHamster]

The world would never have an Uber if not for the dick that Travis Kalanick. The unfortunate reality of humanity has been the fact that morally repugnant people have built things we cherish later. Pyramids to railroads. Now I am not saying Uber is the 10the wonder of the world but I am talking about their role in destroying the taxi monopoly in most major countries. It could not have been broken by following rules and being conservative. The rest of the transgressions come with the territory.
I think Lee was talking about his experiences in Austin with Uber rivals and that will be story in every market if Uber doesn't change though they have Kalanick to thank for their marketshare.

I agree with the reality of your statement but not with the sentiment. I often wonder, given the billions of humans to have lived on this planet, what are the odds that we have lost our greatest minds to poverty, enslavement, common downtroddenness (that is totally a word now) and, therefore, have missed out on the greatest innovations, advancements, and works of art our species is capable of.

How much farther along would we be if our culture was geared toward cooperation and lifting each other up rather than madly scrambling selfishly to the top upon the broken backs of our fellow humans.

I hope some future generation has the opportunity to find out.

 

[Sarty]

A shame, in terms of raw success, that such moralistic and HR issues happened to go hand-in-hand with some extraordinary growth, supply-demand creation, and cutting through of worldwide regulatory issues.

Who knows if a 'different' Kalanick could have successfully held the reins of all those horses.

It's not clear to me just how much of Uber's success (and they certainly are pervasive, if not currently profitable) was through Kalanick's personal qualities, and how much was being in the right place at the right time.

"What if taxis... but with smartphones" was implemented well, but it's not exactly an earth-shattering and mind-blowing concept on par with general relativity or the transistor.

 

[DarthSlack]

I think from an investor and business perspective this is a colossal mistake. Infantile behavior aside-Kalanick built this company into a juggernaut from absolutely nothing. You're never going to be able to hire a CEO with the same drive and passion as the original founder. I think these shareholders will end up regretting this coup.

Kalanick did build the company into a juggernaut from absolutely nothing. He also made some colossal mistakes along the way.

And it is actually quite common for the leadership capable of starting a company from nothing to be forced out when it is time for the company to get out of the startup phase and mentality. The kind of skills that are useful in building something from nothing are frequently counterproductive when taking something to something larger.

 

[TheGreenMonkey]

For what it's worth I'm an Uber driver. (Hiss and boo all you like )

Yesterday and the day before we all got emails detailing ways they're planning to change the Uber-driver relationship; tips and Uber making insurance for when we drive for them are two big ones, along with more pay in general and some other odds and ends.

How do you like it? Driving for Uber that is. I tend to ask all of the drivers I hire (taxi or otherwise) and I am genuinely curious. Most drivers like it immensely although I talked to one that was unhappy about some changes they made a couple of years ago, but was still okay with it. They all enjoy the flexibility though.

 

[pkirvan]

For what it's worth I'm an Uber driver. (Hiss and boo all you like )

Yesterday and the day before we all got emails detailing ways they're planning to change the Uber-driver relationship; tips and Uber making insurance for when we drive for them are two big ones, along with more pay in general and some other odds and ends.

No hissing and booing, but I am curious for your perspective on introducing tipping in the app.

As a customer, the no-tipping policy was a major attraction, because I don't like feeling pressured to leave a tip. And I will feel pressured; I expect that tipping will quickly become the norm, and to not leave a tip will come to be seen as unacceptable, just as it is in a restaurant.

So, when I use Uber, I'll tip, but I'll use Uber a lot less.

EDIT: fixing my broken sentences

Agreed. Employees should be paid a fair living wage. It shouldn’t be up to customers’ whims.

 

[Jurrasic]

For what it's worth I'm an Uber driver. (Hiss and boo all you like )

Yesterday and the day before we all got emails detailing ways they're planning to change the Uber-driver relationship; tips and Uber making insurance for when we drive for them are two big ones, along with more pay in general and some other odds and ends.

No hissing and booing, but I am curious for your perspective on introducing tipping in the app.

As a customer, the no-tipping policy was a major attraction, because I don't like feeling pressured to leave a tip. And I will feel pressured; I expect that tipping will quickly become the norm, and to not leave a tip will come to be seen as unacceptable, just as it is in a restaurant.

So, when I use Uber, I'll tip, but I'll use Uber a lot less.

EDIT: fixing my broken sentences

Agreed. Employees should be paid a fair living wage. It shouldn’t be up to customers’ whims.

The only way that Uber is going to retain it's clients who hate tipping (I am one, pay your fucking employees, dont expect me to!) is if the tip option built into the app is completely optional and anonymous so that the driver does not know if someone they drove tipped them or not.

Personally, I will be going with another service if it's anything otherwise.

 

[arcite]

He only has a net worth of $6 billion, I hope he manages.

 

[waasoo]

The world would never have an Uber if not for the dick that Travis Kalanick. The unfortunate reality of humanity has been the fact that morally repugnant people have built things we cherish later. Pyramids to railroads. Now I am not saying Uber is the 10the wonder of the world but I am talking about their role in destroying the taxi monopoly in most major countries. It could not have been broken by following rules and being conservative. The rest of the transgressions come with the territory.
I think Lee was talking about his experiences in Austin with Uber rivals and that will be story in every market if Uber doesn't change though they have Kalanick to thank for their marketshare.

I agree with the reality of your statement but not with the sentiment. I often wonder, given the billions of humans to have lived on this planet, what are the odds that we have lost our greatest minds to poverty, enslavement, common downtroddenness (that is totally a word now) and, therefore, have missed out on the greatest innovations, advancements, and works of art our species is capable of.

How much farther along would we be if our culture was geared toward cooperation and lifting each other up rather than madly scrambling selfishly to the top upon the broken backs of our fellow humans.

I hope some future generation has the opportunity to find out.

My sentiment is just that, a sentiment I cannot get myself to ever be a hundredth of the douchebag that Travis Kalanick represents. I haven't decided if I should feel sad because it is a limitation or happy it is a virtue because those are the people I see climbing higher everyday. I sure wish the world was more like you imagine and maybe it will get there while I am alive