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Uber boss Travis Kalanick resigns amid shareholder concern over the company’s ‘toxic culture’

UBER chief executive Travis Kalanick has resigned, after the ride-sharing giant was hit with a sexual harassment scandal.

Uber boss Travis Kalanick has resigned. Picture: Money Sharma
Uber boss Travis Kalanick has resigned. Picture: Money Sharma

UBER boss Travis Kalanick has resigned as chief executive amid shareholder concern over the company’s “toxic culture”.

Mr Kalanic stepped down in response to pressure from shareholders, but will remain on the board of the firm, according to reports.

His resignation comes after a review of practices at the firm, which exposed scandals including complaints of sexual harassment and bullying.

The 13-page report criticised how the company’s “hustlin’” culture had encouraged “poor behaviour”, with illicit drugs and alcohol were being used at work events, and a lack of clear policies to combat inappropriate behaviour.

In February, former Uber engineer Susan Fowler wrote on a blog that she had been propositioned by her boss in a series of messages on her first day of work, and that superiors had ignored her complaints.

According to The New York Times, the investors sent Mr Kalanick a document titled “Moving Uber Forward”, calling for an immediate change in leadership.

“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 with another fight,” Mr Kalanick said in a statement to the Times .

Last week, Mr Kalanic said in an email to staff that he was taking an indefinite leave of absence, conceding he needed to improve his leadership skills.

“Recent events have brought home for me that people are more important than work, and that I need to take some time off of the day-to-day to grieve my mother, whom I buried on Friday, to reflect, to work on myself, and to focus on building out a world-class leadership team,” Mr Kalanick said in the memo.

The company, which is valued at close to $US70 billion, recently fired 20 employees for harassment and hired former Apple marketing executive Bozoma Saint John to help salvage its image.

Earlier this month, a staff email from Mr Kalanick was leaked to the press, in which he set out Uber’s “sexual rules of engagement” for work-related trips.

Known as the “Miami letter”, it discussed the penalties for taking drugs and the existence of a $200 “puke charge”, while somewhat crudely outlining the important of sexual consent”

“Do not have sex with another employee UNLESS a) you have asked that person for that privilege and they have responded with an emphatic ‘YES! I will have sex with you’ AND b) the two (or more) of you do not work in the same chain of command. Yes, that means that Travis will be celibate on this trip. #CEOLife #FML.”

Mr Kalanick was also exposed on a dashcam video earlier this year, which showed him verbally abusing an Uber driver who had complained about making less money from the platform.

“I’m bankrupt because of you,” the driver says in the video published by Bloomberg.

“Bulls**t,” Mr Kalanick yells repeatedly before slamming the car door behind him.

He was criticised in 2014 after telling GQ that he referred to Uber as “Boob-er” because it helped him attract women.

An Uber spokesman declined to comment on Mr Kalanick’s resignation when contacted by news.com.au.

Uber CEO Caught on Video Berating Company Driver

dana.mccauley@news.com.au

Originally published as Uber boss Travis Kalanick resigns amid shareholder concern over the company’s ‘toxic culture’

Original URL: https://www.couriermail.com.au/business/companies/uber-boss-travis-kalanick-resigns-amid-shareholder-concern-over-the-companys-toxic-culture/news-story/1910a303a1e087acee6cdec794ea3f37