While on leave, Kalanick asked Uber’s security team to examine an employee’s email to see if that person was leaking information related to a damaging story.
See Bloomberg report.
Kalanick lobbied for preferred successor; Board suspected a secret side deal
Bloomberg reported that Kalanick lobbied to pick his own successor, former GE CEO Jeffrey Immelt. The Uber board rejected this proposal, suspecting that Immelt had promised Kalanick to serve only briefly, facilitating Kalanick’s return.
Kalanick reneged on his agreement to release his board seat and two others he controlled
As part of his resignation, Kalanick had agreed to surrender his seat on Uber’s board as well as two other seats he controlled. But Bloomberg reported that he reneged on this agreement as he unilaterally appointed two board members.
Huffington accused of self-dealing
Bloomberg reported that Uber board member Arianna Huffington was accused of self-dealing. For one, she sought to have Uber provide driver hubs with “nap pods” from her new wellness company. Furthermore, Huffington’s new company received $50,000 in consulting fees from Uber, though Uber staff objected to those payments and the funds were ultimately returned.
Kalanick didn’t abide by leave
When pressed to take leave in response to mounting scandals, then-CEO Travis Kalanick was seen not to comply with the leave. Board member Arianna Huffington was seen as his proxy. Bloomberg reported that Uber’s finance team was spreading the word that Kalanick was still in charge. Among Kalanick’s activities while on leave was searching employee emails to investigate leaks.
Bloomberg reported that Kalanick’s handpicked executive team objected to his meddling while on leave and sent a letter asking him to stop. Business Insider added that a sixteen-person senior management team sent a letter to Uber’s Board, complaining that Kalanick was interfering with their work and asking the Board to intervene.
Kalanick resigned
In June 2017, Kalanick resigned from his position as Uber CEO.
Bloomberg reports that Kalanick’s resignation was to be presented as a graceful departure. Mike Isaac’s Super Pumped (p. 363) reports that Kalanick and investors had agreed to tell the press — falsely! — that Kalanick decided, on his own, to step down.
But a detailed New York Times article revealed the departure as the ousting it actually was. See also Investors asked Kalanick to resign.
Benchmark’s Bill Gurley worried that his investment in Uber could go to zero
Bill Gurley, a partner at Benchmark Capital and an early investor, became increasingly concerned about Uber’s tactics and activities. Bloomberg reports that he worried his firm’s investment in Uber, at that point nominally worth billions of dollars, could go to zero.
Board member Arianna Huffington seen as Kalanick’s proxy
After the Uber board forced Kalanick to take leave, Bloomberg reported that other executives and board members suspected that Uber board member Arianna Huffington was serving as his proxy.
Kalanick re-debated with Uber driver, then (without authority) promised equity in Uber
After being caught on video arguing with Uber driver Fawzi Kamel, Kalanick sought to meet with the driver again to try to make things right. Bloomberg reports that Kalanick had planned to meet with the driver briefly, as little as five minutes, for a simple apology. Instead, the meeting lasted more than an hour, and Kamel and Kalanick reopened their debate about Uber’s pricing policies.
As part of the discussion, Kalanick suggested that he give the driver Uber stock. Uber attorneys rejected the proposal, seeing it as improper that Uber shareholders pay to clean up Kalanick’s personal problem. Kalanick ended up paying Kamel $200,000 of personal funds.