Former Expedia CEO Dara Khosrowshahi has been appointed as Uber’s new chief executive, following a unanimous vote by its board, the company confirms.
Dara Khosrowshahi will meet with staff for the first time on August 30, a statement from Uber said.
His appointment ends months of speculation about who would take the top job at the troubled company.
Dara Khosrowshahi replaces co-founder Travis Kalanick, who resigned in June following investor pressure after months of turmoil.
He came to America when he was 9-year-old, after his family fled Iran on the eve of the Iranian Revolution.
Image source LinkedIn
In 2005, Dara Khosrowshahi became chief executive of the online travel site Expedia, which operates in more than 60 countries.
In an email to staff posted on its website on August 29, the company said it was confident Dara Khosrowshahi was “the best person to lead Uber into the future.”
The announcement was widely anticipated, as Dara Khosrowshahi had already told news outlets he planned to leave Expedia for Uber.
He told Bloomberg News he was aware of the challenges, but was interested in working at a company that is “redefining the transportation industry”.
“Are there difficulties? Are there complexities? Are there challenges? Absolutely, but that’s also what makes it fun.”
“I am not in this to coast. I’m in it to get my hands dirty and build a team and do something that people will look back on with tonnes of satisfaction,” he said.
Dara Khosrowshahi earned about $2.5 million in total compensation at Expedia last year.
His pay has fluctuated wildly because of stock options. In 2015, he earned more than $94 million in total compensation, primarily due to stock awards.
Dara Khosrowshahi will face a number of challenges in his new role, as he seeks to improve both the bottom line and the company’s tarnished image.
Uber said on August 29 that it is cooperating with a US probe into possible bribery law violations.
Travis Kalanick left the firm in June after clashes with regulators in many countries, a trade secrets lawsuit and controversies about harassment.
Five major Uber investors demanded Travis Kalanick’s immediate resignation as chief executive, the New York Times reported.
Travis Kalanick reportedly said: “I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight.”
Uber‘s board said in a statement: “Travis has always put Uber first. This is a bold decision and a sign of his devotion and love for Uber.
“By stepping away, he’s taking the time to heal from his personal tragedy while giving the company room to fully embrace this new chapter in Uber’s history. We look forward to continuing to serve with him on the board.”
Dan Primack, business editor of the Axios news service, was one of the first to report the investor demands for Travis Kalanick to go.
The editor said a group of investors, but particularly Bill Gurley of venture capitalist company Benchmark, had put pressure on Travis Kalanick to resign.
“It’s important to note: Travis controlled the board in terms of votes, so really, it was a vey big uphill climb for [Bill] Gurley and the other investors to get this done,” Dan Primack said.
Uber’s future prospects were now “pretty bright”, Dan Primack added.
Uber has been searching for a chief operating officer, but now can seek out Fortune 500 chief executives to take over the top spot, he said.
The ride-hailing company has had a series of recent controversies, including the departure of other high-level executives.
Eric Alexander, the former head of Uber’s Asia-Pacific business, left after a report that he had obtained the medical records of a woman who was raped by an Uber driver in 2014.
Eric Alexander reportedly shared them with Travis Kalanick, senior vice-president Emil Michael and others.
Eric Alexander was fired earlier this month, and Emil Michael later left Uber.
Board member David Bonderman made a sexist remark at a meeting about workplace practice recommendations last week and then resigned as a director.
In February, the company said it was investigating “abhorrent” harassment claims made by former Uber engineer Susan Fowler.
This month Uber said it had fired more than 20 staff and had taken action against others following a review of more than 200 HR complaints that included harassment and bullying.
There has also been a lawsuit from Google’s parent company, Alphabet, over alleged theft of trade secrets related to driverless cars.
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