Its CEO might be gone, but Uber still seems stuck on the wrong route.
Travis Kalanick’s sudden resignation Tuesday was caused by mounting fears from investors that the Uber co-founder might hurt the company’s valuation when it eventually goes public, according to Vanity Fair.
Many industry watchers felt that investors asked for a regime change to eliminate the male-dominated workplace and cutthroat business ethos for which Uber, under Kalanick’s leadership, had become known.
Vanity Fair reports, however, that investors told Kalanick to quit because they were worried the future price of Uber’s IPO would diminish the longer he stuck around. The company had been embroiled in numerous scandals with the ex-CEO at the helm, but investors hope those will go away when a new leader takes over.
Nick Bilton says that Uber investors just want to move past the scandals so the company’s enormous valuation will remain before their IPO: “For now, they’re focusing on hiring a C.E.O. who can help settle the rocking ship and then take Uber public so that they can add another comma to their personal net worths. Technology is a cruel industry, and Uber plays the game perhaps more than any company.”
This article was featured in the InsideHook newsletter. Sign up now.