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Businesses Transportation

Uber CEO Travis Kalanick Has Resigned Due To Investor Pressure (recode.net) 59

Travis Kalanick has resigned as chief executive of Uber after pressure from investors, ending eight years of leading the ride-hailing company that has expanded round the globe but became mired in controversies. From a report: Kalanick had become a giant liability to the car-hailing company for a growing number of reasons, from sketchy business practices to troubling lawsuits to a basic management situation that was akin to really toxic goat rodeo. Thus, he had to go, even though some sources said he had the voting power to stay. But big investors also have leverage and a big enough group of them joined to use it. Those investors include Benchmark, Fidelity and Menlo Ventures, all of whom sent Kalanick a joint letter called "Moving Uber Forward" on Tuesday afternoon. Interestingly, Google Ventures was not among the group, even though its parent company Alphabet is now in a major lawsuit with Uber over the alleged theft of self-driving car technology from its Waymo unit.
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Uber CEO Travis Kalanick Has Resigned Due To Investor Pressure

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  • Toxic goat rodeo (Score:4, Insightful)

    by 110010001000 ( 697113 ) on Wednesday June 21, 2017 @09:04AM (#54660563) Homepage Journal
    Not sure what a toxic goat rodeo is. It doesn't sound good.
  • That's OK (Score:5, Funny)

    by Big Hairy Ian ( 1155547 ) on Wednesday June 21, 2017 @09:07AM (#54660593)
    I understand there's still a vacancy at Yahoo
  • Lost users? (Score:4, Interesting)

    by Sporkinum ( 655143 ) on Wednesday June 21, 2017 @09:10AM (#54660615)

    I am guessing they lost a ton of users, or haven't been gaining any. Since the whole operation is a money loser now and in the past, and they were pumping money in contingent on growth, the investors forced the situation.
    I loved Uber the few times I used it, but deleted my account and quit using it several months ago due to reports of harassment, and the way they treated their drivers. Latest thing was apparently their no-tip thing was that they paid fairly and tipping was built into the cost. Now they offer tipping in the app because they were shorting the drivers and the no-tipping thing was bullshit.

    • by TWX ( 665546 )

      The whole point of current-Uber was to build the company to be ready to be a leader for self-driving technology, so that passengers are already used to summoning Uber when they need a ride. Since Uber didn't want to invest a lot of money in their own fleet of human-driven cars, they chose to contract-out so that they don't have to deal with depreciation of capital purchases and amortizing purchases over the duration of the life of the equipment, they just make the contractor do it.

      Unfortunately they're sta

      • Re:Lost users? (Score:4, Insightful)

        by JohnFen ( 1641097 ) on Wednesday June 21, 2017 @10:38AM (#54661325)

        I'm not so sure it was timing as much as Uber has incredibly bad business practices that would sink any company.

      • As self driving cars become mainstream Uber will become irrelevant. Without the cost of driver involved cars will become simple utilities... and utilities have razor thin margins.
        • by TWX ( 665546 )

          Honestly it will depend on what quality the users expect.

          Over the last few years people on this forum as well as others have discussed what the future would look like with self-driving cars, and the discussion of the random-vehicle subscription model has always gotten back around the the state of the vehicle. Typically the concern is that the car will arrive trashed, or soiled, or some other issue similar to what we see on mass-transit or with taxis. It may well be that different customers will willingly

          • If you think about it Uber is a kind of social media company pairing drivers with passengers. There will be no social interest when the cars are self driving- just a mundane and dreary business that would be easily implemented (by anyone) in software.
            • by TWX ( 665546 )

              I don't think about them as a social-media company. I think of them as a company that masquerades as a ride-sharing company in order to avoid passenger livery laws in order to keep costs down while they work on their real service.

              • Yes but the social media aspect/web 2.0 is the shtick they are using to hoodwink investors into buying their shares. Once that's gone they are nothing.
                • by TWX ( 665546 )

                  Perhaps. I suppose it depends on if they've said nearly all things to all investors, or if there are some investors with a lot more involvement in what's really going on in the company and what its actual goals are.

                  I remember the dotcom boom, and stupid investors throwing money at anyone with a website URL registered. Hell, Zombo.com was set up as a joke and even they apparently were contacted by investors even though all that site had was a silly flash animation.

  • Indefinite leave of absence.... Just like "we're on a break". We are through, just not ready to admit it yet.
  • I don't get it (Score:3, Insightful)

    by Anonymous Coward on Wednesday June 21, 2017 @09:11AM (#54660625)

    Travis hasn't done ANYTHING that we haven't seen in Robocop. What's the big fuss about? That he got caught? I'm tired of this fucking hypocrisy, it is still the same company with the same business plan - pretending they aren't running a taxi business to avoid taxes, and screwing drivers - why isn't THIS a problem?

    Fuck off already.

  • Proof that if you're enough of an asshole as CEO someone will eventually notice.
  • Yeah, leading it straight into the ground.

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