Is new CEO Dara Khosrowshahi's taking over signalling changes at Uber?

Posted August 31, 2017

"We are delighted to announce that Uber's board has voted unanimously to appoint Dara Khosrowshahi to be our new CEO", Uber executives said in an email to employees.

Khosrowshahi is known as an experienced top executive, willing to speak his mind and to advocate for women getting equal pay and leadership opportunities. Uber operates in more than 75 countries worldwide.

Khosrowshahi, 48, is an Iranian immigrant who came to the United States with his parents in 1978 during the Iranian Revolution.

After increasing pressure from investors, Uber's CEO Travis Kalanick resigned from the company last June.

Okerstrom has been involved in every integral decision that company has made in recent years, including everything from strategy to the acquisitions of Trivago and HomeAway. And I can look forward to Uber and know that I will make a difference, hopefully for the better.

Good chief executives typically ramp up discipline and accountability in employee ranks upon taking charge at companies, so that will likely be among steps taken by Khosrowshahi at the Uber helm, according to Bajarin.

Today's changing of the guard is a major "reset" for Uber, and as Recode puts it, "While some of the staff were the ones responsible for all the messes - ranging from regulatory missteps to dysfunctional management to toxic workplace behaviors to legal minefields - a great swath of Uber's 16,000 staffers are blameless, and just trying to do their jobs".

The US Justice Department is investigating whether Uber broke American laws against bribing foreign officials to promote business interests, the company confirmed. "At some point, I expect the company to be public, but that's up to the board".

The company is losing hundreds of millions of dollars a quarter.

Gross bookings at the service doubled as the number of trips climbed 150 percent from a year earlier. There are massive controversies around Uber, including sexual harassment and discrimination allegations, a high-profile lawsuit from Google's Waymo (formerly the Google self-driving vehicle project), as well as a federal probe into the secret Greyball tool used by Uber to deceive and evade regulators who were trying to shut down its ride-hailing service. The company acquired HomeAway for $3.9 billion in 2015.

Kalanick has said the lawsuit is a baseless attempt to slander him with false allegations, and that Benchmark's claims are subject to mandatory arbitration.

Chancery Judge Sam Glasscock III is hearing arguments on Wednesday in Georgetown, Delaware, amid increasing animosity between the two sides. On Sunday, Uber's board, which includes Arianna Huffington and, approved Khosrowshahi as the company's next CEO. Lawyers for Kalanick and Benchmark, one of Uber's major investors, met for the first time in court Wednesday to hash out an explosive lawsuit.