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Uber chief to take leave from company Uber chief to take leave from company
(about 3 hours later)
Uber boss Travis Kalanick plans to take time away from the company, and could return in a diminished role.Uber boss Travis Kalanick plans to take time away from the company, and could return in a diminished role.
The move comes after a review of management and practices at the firm, which is facing a number of scandals. It comes after a review of management and practices at the firm, which is facing a number of scandals including complaints of sexual harassment.
The review was sparked by a former employee's claims the company ignored her complaints about sexual harassment. Uber's board on Sunday voted in favour of the recommendations from the review.
Uber's board on Sunday voted in favour of the recommendations from the review. Another board member resigned Wednesday after a sexist remark. But two days later, board member David Bonderman made a sexist remark at a meeting about the recommendations and has now stepped down.
Some of Mr Kalanick's responsibilities could be shifted to other executives.
In the email to staff, Mr Kalanick said the decision to take leave, which also comes after the sudden death of his mother in a boating accident, is part of an effort to create "Uber 2.0".In the email to staff, Mr Kalanick said the decision to take leave, which also comes after the sudden death of his mother in a boating accident, is part of an effort to create "Uber 2.0".
"For Uber 2.0 to succeed there is nothing more important than dedicating my time to building out the leadership team," Mr Kalanick wrote. "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.""For Uber 2.0 to succeed there is nothing more important than dedicating my time to building out the leadership team," Mr Kalanick wrote. "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."
Mr Kalanick's email did not say how long he would be away from the firm.Mr Kalanick's email did not say how long he would be away from the firm.
Analysis: Dave Lee, BBC North America Technology ReporterAnalysis: Dave Lee, BBC North America Technology Reporter
When that blog post by ex-employee Susan Fowler dropped on a quiet Sunday afternoon, I doubt anybody at the company thought it would lead to this. I certainly didn't.When that blog post by ex-employee Susan Fowler dropped on a quiet Sunday afternoon, I doubt anybody at the company thought it would lead to this. I certainly didn't.
That moment marked the beginning of the crisis at Silicon Valley's most talked about start-up.That moment marked the beginning of the crisis at Silicon Valley's most talked about start-up.
In the middle of it all, Travis Kalanick, a man who, rightly or wrongly, now symbolises what people feel is the very worst of tech "bro" culture. A man flush with money and an unrelenting ambition that slowed for no-one. Until now.In the middle of it all, Travis Kalanick, a man who, rightly or wrongly, now symbolises what people feel is the very worst of tech "bro" culture. A man flush with money and an unrelenting ambition that slowed for no-one. Until now.
Uber's problems were enough, most argued, for Mr Kalanick to make this decision. But coupled with the tragic death of his mother, the 40-year-old is quite understandably not in a position to give the company the attention it so desperately needs.Uber's problems were enough, most argued, for Mr Kalanick to make this decision. But coupled with the tragic death of his mother, the 40-year-old is quite understandably not in a position to give the company the attention it so desperately needs.
Since I started reporting this story I've been told how this problem is not limited to Uber. It's across the tech industry far and wide. With that in mind, it will perhaps be encouraging to the rank-and-file at every tech firm that this fiasco began with one act: a woman brave enough to speak out.Since I started reporting this story I've been told how this problem is not limited to Uber. It's across the tech industry far and wide. With that in mind, it will perhaps be encouraging to the rank-and-file at every tech firm that this fiasco began with one act: a woman brave enough to speak out.
Audio from a Tuesday meeting with employees to address sexism and other issues, leaked to a Yahoo News reporter, underscored how pervasive some of the problems appear to be.Audio from a Tuesday meeting with employees to address sexism and other issues, leaked to a Yahoo News reporter, underscored how pervasive some of the problems appear to be.
Board member Arianna Huffington is heard saying the effect of having one woman on the board is that it's likely to attract more women to the board.Board member Arianna Huffington is heard saying the effect of having one woman on the board is that it's likely to attract more women to the board.
In response, Mr Bonderman reportedly responds that "it's much more likely to be more talking".In response, Mr Bonderman reportedly responds that "it's much more likely to be more talking".
Mr Bonderman later emailed staff to apologise, and then said he was stepping down from the board effective Wednesday morning. Mr Bonderman, who is a founding partner of private equity giant TPG Capital, later emailed staff to apologise, and then said he was stepping down from the board effective Wednesday morning.
He said he did not want his comments to create a distraction for Uber as the company "works to build a culture of which we can be proud". He said he did not want his comments - which he said were "careless, inappropriate, and inexcusable" - to create a distraction for Uber as the company "works to build a culture of which we can be proud".
Aggressive cultureAggressive culture
Uber, a ride hailing company based in San Francisco, has been rocked by a series of controversies in recent months, including an investigation of its business practices and a lawsuit from Google's parent company, Alphabet, over alleged theft of trade secrets related to driverless cars.Uber, a ride hailing company based in San Francisco, has been rocked by a series of controversies in recent months, including an investigation of its business practices and a lawsuit from Google's parent company, Alphabet, over alleged theft of trade secrets related to driverless cars.
It also encountered pushback when it changed its policies around collecting user data.It also encountered pushback when it changed its policies around collecting user data.
Its corporate culture has been criticised for being aggressive, and this was inflamed earlier this year when Mr Kalanick was caught on video berating an Uber driver who voiced concerns about fares.Its corporate culture has been criticised for being aggressive, and this was inflamed earlier this year when Mr Kalanick was caught on video berating an Uber driver who voiced concerns about fares.
He said in response to the video: "I must fundamentally change as a leader and grow up."He said in response to the video: "I must fundamentally change as a leader and grow up."
His leave follows the departure of other high-ranked executives.His leave follows the departure of other high-ranked executives.
Uber last week also said it had fired more than 20 staff and taken actions against others following a separate review of more than 200 human resources complaints that included harassment and bullying.Uber last week also said it had fired more than 20 staff and taken actions against others following a separate review of more than 200 human resources complaints that included harassment and bullying.
The recommendations released on Tuesday stem from a broader review conducted by the law firm Covington & Burling. It also emerged that the president of its Asia Pacific business, Eric Alexander, had obtained the medical records of a woman who had been raped by an Uber driver in 2014 and, according to technology and media news website Recode, shared them with Mr Kalanick, senior vice president Emil Michael and others.
Mr Alexander was fired earlier this month. Mr Michael left Uber on Monday.
'Promoting accountability''Promoting accountability'
The recommendations released on Tuesday stem from a broader review conducted by the law firm Covington & Burling.
The proposed changes include starting performance reviews for senior leaders, reviewing the firm's pay practices, beefing up its human resources department and installing an independent board chair.The proposed changes include starting performance reviews for senior leaders, reviewing the firm's pay practices, beefing up its human resources department and installing an independent board chair.
"Implementing these recommendations will improve our culture, promote fairness and accountability, and establish processes and systems to ensure the mistakes of the past will not be repeated," said Liane Hornsey, the firm's chief human resources officer."Implementing these recommendations will improve our culture, promote fairness and accountability, and establish processes and systems to ensure the mistakes of the past will not be repeated," said Liane Hornsey, the firm's chief human resources officer.
"While change does not happen overnight, we're committed to rebuilding trust with our employees, riders and drivers," she added."While change does not happen overnight, we're committed to rebuilding trust with our employees, riders and drivers," she added.
Uber has revolutionized the taxi industry since Mr Kalanick launched the ride hailing app less than 10 years ago.Uber has revolutionized the taxi industry since Mr Kalanick launched the ride hailing app less than 10 years ago.
Privately held, investors reportedly valued it last year at nearly $70bn.Privately held, investors reportedly valued it last year at nearly $70bn.
But the firm has clashed with authorities, drivers and others as it expanded to more than 600 cities and a workforce of more than 12,000.But the firm has clashed with authorities, drivers and others as it expanded to more than 600 cities and a workforce of more than 12,000.
The scandals have taken a toll on the company's reputation and business, according to reports.The scandals have taken a toll on the company's reputation and business, according to reports.
A Monday survey of US adults by Morning Consult Brand Intelligence found 40% of respondents had a favourable impression of the firm, down from 49% just a week earlier.A Monday survey of US adults by Morning Consult Brand Intelligence found 40% of respondents had a favourable impression of the firm, down from 49% just a week earlier.
Impact on business?Impact on business?
TXN Solutions, which tracks consumer spending, also says Uber has lost market share since January, when consumers began a campaign against the company for not taking stronger stance against US President Donald Trump, particularly his Muslim ban.TXN Solutions, which tracks consumer spending, also says Uber has lost market share since January, when consumers began a campaign against the company for not taking stronger stance against US President Donald Trump, particularly his Muslim ban.
Mitch Kapor and Freada Kapor Klein, investors in the company who had pushed for change earlier this year, called the recommendations "thoughtful and extensive" and suggested the company was taking the issues seriously.Mitch Kapor and Freada Kapor Klein, investors in the company who had pushed for change earlier this year, called the recommendations "thoughtful and extensive" and suggested the company was taking the issues seriously.
"Our stated hope all along was that Uber could leapfrog other companies to be a real leader in diversity and inclusion," they said."Our stated hope all along was that Uber could leapfrog other companies to be a real leader in diversity and inclusion," they said.
"At this point we believe that the company deserves some room to put the plan into effect and show us what can be done.""At this point we believe that the company deserves some room to put the plan into effect and show us what can be done."
But Susan Fowler, the former Uber engineer whose blog prompted the controversy, sounded a more sceptical note.But Susan Fowler, the former Uber engineer whose blog prompted the controversy, sounded a more sceptical note.
"Ha! Yeah, they'll never apologize. I've gotten nothing but aggressive hostility from them. It's all optics," she wrote on Twitter."Ha! Yeah, they'll never apologize. I've gotten nothing but aggressive hostility from them. It's all optics," she wrote on Twitter.
"Remember that this is not about diversity and inclusion, it's about laws being broken. Harassment, discrimination, retaliation are illegal.""Remember that this is not about diversity and inclusion, it's about laws being broken. Harassment, discrimination, retaliation are illegal."