Thursday, June 22, 2017
Travis Kalanick has been dumped from scandal-ridden Uber, and it is an act of CEO accountability. Board members and investors determined the rot in the company's culture extended from the top and came from an atmosphere of growth at all costs. It made no difference whether executives made suggestive remarks to women and bent rules as long as the company continued to expand at a breakneck pace. Kalanik still has board defenders but investors are opposed to him returning as a CEO after his leave of absence. He will retain a board seat but that is all. Uber now has to find a path to profitability while it continues to grow worldwide. It also needs to stop bleeding in the US where Lyft is taking market share. It's a hard task for any CEO, especially one who will need to replace executives who have already left the company. There is no guarantee Uber will be successful, but at least there is a chance that turmoil in its ranks will end.