What to Know From Uber's Big Day

CEO Travis Kalanick is taking a leave of absence, and more
By Evann Gastaldo,  Newser Staff
Posted Jun 13, 2017 12:58 PM CDT
Updated Jun 13, 2017 3:29 PM CDT

(Newser) – Uber CEO Travis Kalanick is taking an indefinite leave of absence amid controversy at the ride-sharing company and the ensuing Eric Holder investigation, he announced Tuesday in a company-wide email. Also out Tuesday were the "sweeping" recommendations from that investigation, per the Washington Post. What you need to know, including speculation on who could take Kalanick's place, in our rundown.

  • "For Uber 2.0 to succeed there is nothing more important than dedicating my time to building out the leadership team," said Kalanick, whose return date was not mentioned and who may ultimately see a reduction in his duties and his influence on the company's board, per the Washington Post. "But if we are going to work on Uber 2.0, I also need to work on Travis 2.0 to become the leader that this company needs and that you deserve."

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  • Also out Tuesday were details on the recommendations from Holder's investigation, which was prompted by allegations of sexual harassment and other misconduct at Uber. The Post notes that one of those recommendations is to "[weaken] the grip of Kalanick and his allies on Uber’s board by adding new members and appointing an independent chair."
  • TechCrunch and NPR have more on the recommendations, which the board agreed to adopt in full Sunday. Other recommendations include mandatory leadership training for senior managers, more diversity on the staff, a better process for handling employee complaints, stricter guidelines on employee sexual relationships, and improved employee benefits.
  • You can see all of the recommendations in detail in this 13-page letter.
  • If you don't want to read the whole thing, Fortune runs down 10 things to know from the report.
  • Uber's senior VP for business plus 20 other employees are out after the report, and a new member of the board, Nestle executive Wan Ling Martello, has already been announced. As for who could take Kalanick's place, NBC News takes a look at what to expect.
  • Lyft has been increasing in popularity and now has a hold on 25% of the US ride-sharing market, and Marketwatch takes a look at the opening Uber's scandal may have created for Lyft.
  • Meanwhile, the Los Angeles Times takes a look at how Uber shareholders might respond to the controversy.
(Read more Uber stories.)

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