Shareholder Revolt Pushes Uber Founder and CEO Travis Kalanick Out

(SL) – Well that went bad quick.

The Daily Mail reports, Uber founder and CEO Travis Kalanick has resigned from the ride-sharing company.

The 40-year-old entrepreneur announced he was stepping down as the firm he founded in 2009 deals with a sexual harassment scandal.

According to the New York Times, a shareholder revolt made it untenable for him to stay on at the company.

The newspaper reported that earlier on Tuesday, five of Uber’s major investors, including Bill Gurley from capital firm Benchmark, demanded that the chief executive resign immediately.

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They then obtained a letter in which Kalanick announced his resignation, titled: ‘Moving Uber Forward.’

‘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,’ it read.

It went on: ‘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 could be. Thank you for everything.’

Kalanick’s resignation comes after he took a leave of absence earlier this month in the wake of a report being released into sexual assault claims made against the ride-sharing company.

Last week a woman raped by an Uber driver in India filed a lawsuit accusing the on-demand ride service of invading her privacy and defaming her character.

The woman, a Texas resident identified in litigation as ‘Jane Doe,’ had settled an earlier lawsuit with Uber stemming from the 2014 sexual assault.

The new case filed in San Francisco federal court comes after Uber’s firing of Eric Alexander, an executive who read and discussed medical information about the rape victim.

Alexander was named as a defendant in the litigation, along with Kalanick and former senior vice president Emil Michael, according to a copy of the court filing posted online by Wigdor law group representing the woman.

Reportedly, there were also incidents of homophobia and racism, all of which they said took place inside the environment fostered by Kalanick and his circle of trusted top executives.

Uber is valued at 70 Billion dollars.

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