Uber CEO Travis Kalanick has stepped down from the CEO position of Uber under mounting pressure from investors over his leadership.
The investors which include venture capital firm Benchmark, First Round Capital, Lowercase Capital, Menlo Ventures, and Fidelity Investments, together own more than a quarter of Uber’s stock. In total, they have about 40% of Uber’s voting power. The investors demanded Kalanick’s resignation in a letter delivered to him while he was in Chicago.
Mr Kalanick reportedly 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 with another fight.”
Kalanick will continue to hold a position on Uber’s board of directors, according to a statement from the board given to TechCrunch.
Kalanick’s departure has been preceded by those of many other senior figures in the company. Most recently venture capitalist David Bonderman resigned from Uber’s board of directors last Tuesday evening after making a sexist comment at the all-staff meeting where the Holder report’s recommendations were presented.
A Uber Spokesperson 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.”
Uber has raised more than $11 billion in funding and left its most recent raise with a reported $70 billion valuation. Though Silicon Valley investors have shown that they will follow a founder’s direction in even the most turbulent times, recent events proved to threaten Uber’s stability, something they could not accept.