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.
Escort bar visit
European Court of Justice said Uber is a transportation service, may be regulated at national level
The European Court of Justice (the highest court in Europe) held that Uber is a transportation service, which may therefore be regulated by each country in Europe. The ECJ explained:
The service provided by Uber connecting individuals with non-professional drivers is covered by services in the field of transport. Member states can, therefore, regulate the conditions for providing that service.
In contrast, Uber had argued that the company was an information technology service, subject only to Europe-wide regulation and exempt from national law.
Acting US Attorney confirmed a “pending criminal investigation” of Uber
A December 2017 letter confirmed a “pending criminal investigation” against Uber by the US Attorney’s Office of the Northern District of California. This was the first official confirmation of such an investigation.
The letter indicated that the US Attorney’s Office had interviewed ex-Uber security analyst Richard Jacobs. See Jacobs’ allegations.
Early investor resigned due to allegations of sexual misconduct
Shervin Pishevar, one of the earliest investors in Uber, resigned from his investment firm (and hence ended his affiliation with Uber) in the face of allegations of sexual misconduct. He denied the allegations.
In November 2017, Bloomberg reported that five women had accused Pishevar of using his position to make unwanted sexual advances.