Travis Kalanick, the combative and embattled CEO of ride-hailing giant Uber, has resigned under pressure from investors at a pivotal time for the company.
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Uber’s board confirmed the move early Wednesday, saying in a statement that Kalanick is taking time to heal from the death of his mother in a boating accident while giving the company room to fully embrace this new chapter in Uber’s history. He will remain on the Uber Technologies Inc. board.
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The move comes as Uber, the world’s largest ride-hailing company, was having trouble morphing from a free-wheeling startup into a mature company that can stanch losses and post consistent profits. After eight years of phenomenal growth by upending the taxi business, Uber had reached a point where the culture that created the company had become a liability that threatened to kill it.
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In a statement, the 40-year-old co-founder said his resignation would help Uber go back to building rather than be distracted with another fight, an apparent reference to efforts on the board to oust him.
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It was unclear who would replace Kalanick.
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The resignation came after a series of costly missteps under Kalanick that damaged Uber’s reputation, including revelations of sexual harassment in its offices, allegations of trade secrets theft and a federal investigation into efforts to mislead local government regulators.
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Uber lost an expensive battle for supremacy in China against Didi Chuxing and had to be satisfied with taking a stake in Didi as a consolation prize. Uber posted a $708 million first-quarter loss, unable to turn $3.4 billion in revenue into a profit. The loss narrowed from the $991 million it posted in the previous quarter.
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Investors have talked about selling stock in Uber to the public, a move that would imply a transition to an established business. The company was valued at near $70 billion the last time…