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Uber boots out Travis Kalanick from CEO's office. But can he complain?

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Sushant Talwar
Sushant TalwarJun 21, 2017 | 22:13

Uber boots out Travis Kalanick from CEO's office. But can he complain?

Popular ride-hailing service Uber looks set for a bumpy ride in the coming days after co-founder Travis Kalanick resigned from his post as the company's CEO on June 21. Reports suggest Kalanick stepped down after increased pressure from shareholders. However, he will remain on the board of the ride-hailing firm.

Uber has been in the news of late for all the wrong reasons and Kalanick's resignation comes at a time when Uber is looking to turn the page on a difficult period for the company. Just last week, Uber's board had called for a review of practices at the firm that stirred a controversy started by scandals, including complaints of sexual harassment against Uber employees. 

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There was some calm when Kalanick went on a sabbatical last week to mourn the recent death of his mother. However, it turns out it was just the calm before the storm. 

In a statement explaining his decision to step down, Kalanick said, "I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted by another fight."

But according to a report published in The New York Times Kalanick wasn't too keen on stepping down. He only resigned after a shareholder revolt pushed him to a corner making it impossible for him to stay on as the CEO of the company.

In the letter titled “Moving Uber Forward”, the investors asked Kalanick to resign immediately claiming Uber needed a change in leadership. Kalanick, who was in Chicago at the time then consulted with some of the investors and board members as a last resort before finally agreeing to step down. 

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[Photo: Reuters]

But is the move good news for Uber?

Since then the board of directors at Uber has released a statement thanking its outgoing chief for always putting "Uber first". In what seems to be an attempt at shifting the blame, the finely-crafted statement said that his stepping down as the CEO of Uber would give the company “room to fully embrace this new chapter in Uber’s history”.

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So is this Uber's board trying to pin the blame on the outgoing CEO's door? Or will Kalanick's departure really help the company? The answer to that is yes.

Co-founder of Uber, Kalanick, has been behind the ride-hailing service's staggering success and as such his departure will push the company into a difficult phase of transition. Kalanick's efforts in making Uber a game-changer cannot be ignored. He helped the ride-hailing service become a platform that not only provided a convenient and affordable way to travel from one point to the other but also created countless new jobs for drivers worldwide.

But there is no denying that he has also been at the root of much that is wrong with Uber as an organisation. From the accusations of abrasive handling of drivers that drive its business forward, to a culture that promotes casual racism and sexism inside the its tall offices, many believe Kalanick is to be blamed for things going more than out of hand at Uber. And there is enough evidence to support such claims. 

The tale of Travis Kalanick's controversial statements

As early as 2013, the company under its CEO's directions stepped forward to defend a driver accused of assault and instead chose to blame the media for blowing out of proportion claims of assault by a rider. In an email, Kalanick attacked the media for projecting that Uber is "somehow liable for these incidents that aren't even real in the first place". Kalanick also stressed that Uber needs to "make sure these writers don't come away thinking we are responsible even when these things do go bad".

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Kalanick is also blamed for being behind the never-ending allegations of sexism against Uber employees. In an interview, the outgoing CEO of the company which is valued at over $3 billion joked that he likes to call it "boob-er" as it has helped him get laid more times than he can count. 

Many such incidents have defined Kalanick's leadership at Uber. The company has been exposed for having a toxic workplace culture that included sexual harassment and discrimination, and sadly, much of it was down to its outgoing CEO setting a bad precedent for his employees.

Kalanick could not have much complained about being booted from the CEO's office of the company he once helped set-up.

Last updated: June 21, 2017 | 22:13
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