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What's going on?
Under pressure from shareholders, Ubers co-founder and CEO, Travis Kalanick, has resigned following months of scandals at the worlds largest startup.
What does this mean?
Uber has faced a plethora of issues in recent months, including numerous reports of sexual harassment and discrimination. A report from the law firm of a former US Attorney General was released last week with prescriptions for change. Following that, Kalanick, who is also dealing with a family tragedy, announced an indefinite leave of absence. It also led to the resignation of Kalanicks right-hand-man.
But that wasnt enough for Ubers board of directors. On Tuesday, a number of Ubers board members, who represent some of its major investors, reportedly requested that Kalanick step aside and allow someone else to lead the new chapter in Ubers history.
Why should I care?
For markets: This should make it easier for Uber to go public. (tweet this)
Like any board, Ubers board is mandated to act in the best interests of the companys shareholders and that likely involves taking the company public (i.e. completing an IPO). Given the plethora of scandals, doing so with Kalanick at the helm could have proved difficult that perception is, quite possibly, the underlying reason for the boards action.
The bigger picture: The skills required to lead an early-stage company are different to those needed for a large company.
Uber built its existence by flying close to the sun. Its aggressive push into new markets, in many instances, challenged existing regulations often laws were changed to suit ride-hailing companies after Uber had already established a foothold, in a sort of ask for forgiveness, not permission approach. Managing a massive, mature company (especially one that may eventually be public) typically requires an approach that is much more sensitive to corporate norms.
Originally posted as part of the Finimize daily email.
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