CEO Kalanick quits, Uber wants him to 'heal from personal tragedy'

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IANS | 22 Jun, 2017
After facing over 200 complaints from his staff, including serious allegations of sexual harassment, global ride-hailing service Uber's embattled CEO Travis Kalanick has finally stepped down following a strong pressure from investors, media reported on Wednesday.

"I never thought I would be writing this. As you all know, I love Uber more than anything in the world, but at this difficult moment in my personal life, I have accepted a group of investors' request to step aside, so that Uber can go back to building rather than be distracted with another fight," Kalanick said in a media statement.

"I will continue to serve on the board and will be available in any and all ways to help Uber become everything we've dreamed it would be," the Uber co-founder added.

Reacting to Kalanick's decision, the Uber board said: "Travis has always put Uber first. This is a bold decision and a sign of his devotion and love for Uber. By stepping away, he's taking the time to heal from his personal tragedy while giving the company room to fully embrace this new chapter in Uber's history. We look forward to continuing to serve with him on the board."

The problems for Kalanick started earlier this year after a former Uber engineer alleged sexual harassment at the company.

Susan Fowler, a former site reliability engineer, in a lengthy blog post levelled numerous allegations of sexism against her former superiors. Her blog was widely shared online and prompted the company to launch an internal inquiry.

This led to further allegation from other employees, prompting the company to conduct internal investigations.

Last week, Kalanick said he was taking a leave of absence for personal reasons, an announcement that came at a time when the company was dealing with a series of workplace scandals.

Kalanick's decision to step aside came after an internal investigation conducted by former US Attorney General Eric Holder.

Holder said that Uber should "review and reallocate the responsibilities of Travis Kalanick" and search for a chief operating officer who would work closely with the new CEO to improve Uber's corporate culture.

Holder also recommended that COO candidates have backgrounds in diversity and inclusion, saying that would reinforce "actions resulting from recommendations... relating to tone at the top and the need to focus on diversity and inclusion at Uber."

San Francisco-based Uber, the world's largest ride-hailing app, has already fired 20 employees -- including some in senior positions -- after evaluating more than 200 claims of sexual harassment, discrimination, bullying and unprofessional conduct.

Uber has also run into some serious troubles in India in the recent past.

The company was sued last week by a woman who was raped during a Uber ride in New Delhi in 2014 for intrusion of privacy and defamation among other claims after it was revealed that an Uber executive obtained her confidential medical records from the Delhi Police.

Kalanick and former executive Emil Michael were also named in the suit that was filed in California. The lawsuit cites several media reports where Kalanick and other executives doubted the victim's account of rape.

Earlier this year, the company asked Amit Singhal, India-born senior vice-president of engineering division, to leave the company following allegations of sexual harassment.

Last year, an Uber driver was arrested in Kolkata over allegations of sexually assaulting a woman inside the cab.