Is Uber's New CEO Already Doomed?

by Edgar Hayes August 31, 2017, 5:26
Is Uber's New CEO Already Doomed?

Uber's new CEO told company employees Wednesday that the ride-hailing company must change, and what got it to this point won't get it to the next level.

The Land Transportation Franchising and Regulatory Board (LTFRB) stopped Uber's operations in mid-August, after it accused the company of flouting an order to stop accepting new driver applications.

This should also mark the end of the big mess that the Uber board got reduced to following the ouster of founder and ex-CEO Travis Kalanick.

Yahoo reporter JP Mangalindan, who obtained some leaked audio of an Uber all-hands meeting in July when Kalanick resigned, still apparently has a leaking source inside the company from whom he was getting the blow-by-blow of this morning's meeting.

Khosrowshahi, 48, is an Iranian immigrant who came to the United States with his parents in 1978 during the Iranian Revolution. He became Expedia chief executive in 2005, four years after IAC acquired the company.

If there is one thing that's true about Uber most of all: It could really benefit from no more hair-on-fire drama for quite a while.

"The board and the executive leadership team are confident that Dara is the best person to lead Uber into the future", Uber's eight-member board wrote in an email to employees sent late Tuesday that was also made public. Add your questions for Dara here, and stay tuned for a calendar invite with more details.

Khosrowshahi will meet with small groups of employees and spend time with drivers in the coming weeks, the company said.

Please join us in welcoming Dara on what promises to be an exciting ride!

The US government earlier this year was reported to have launched an investigation into Uber for the use of secret software that enabled the company to operate in areas where it was banned or restricted.

"I've been here at Expedia for so long that I've forgotten what life is outside of this place".

Uber has also been investing in autonomous driving technology, and provoked a lawsuit from the former Google auto unit now called Waymo that accused Uber of stealing trade secrets.

Although rumours suggested HP chief executive Meg Whitman or Jeff Immelt, the former CEO of General Electric, could take up the demanding role, Immelt announced he wouldn't be joining the taxi firm in a tweet on Sunday. "I think he's a phenomenal leader; Uber is ridiculously interesting".

Uber has also faced an executive exodus this year.

The Uber board has been in turmoil, with one major investor in the company, Benchmark Capital, suing Kalanick and accusing him of sabotaging the search for his replacement.

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