Travis Kalanick
Mike Blake / Reuters
An internal investigation into Uber's culture recommended that chief executive Travis Kalanick release some of his iron grip on the company, that the ride-hail giant hold its senior leaders accountable, and that create an ethics committee.
The findings were made public Tuesday after Uber announced in February that it would launch an internal investigation, led by former attorney general Eric Holder, into allegations of pervasive sexism and sexual harassment.
A representative for Uber’s board said it unanimously approved all recommendations from the Holder report at a meeting on Sunday — but did not reveal what those recommendations were. The board also discussed whether Uber chief executive Travis Kalanick should take a leave of absence for three months, but did not make any decisions, people familiar with the matter told BuzzFeed News. (Kalanick is also grappling with a family tragedy.)
Uber launched two internal investigations into its workplace culture in February, after former engineer Susan Fowler published a viral blog post alleging sexism and sexual harassment at the company. The first investigation, led by the law firm Perkins Coie, focused on Fowler’s claims. Uber told employees last week that investigators looked into 215 reported claims about issues related to discrimination, sexual harassment, unprofessional behavior, bullying, harassment, retaliation, and physical security. The company said it fired 20 people as a result. The ride-hail giant also brought on Holder and Tammy Albarrán from the law firm Covington & Burling to create a report on its workplace and culture. The firms interviewed current and former employees.
The results of that report come after the company has dealt with months of unrelenting crises. It is facing a leadership void after the departures of more than a dozen executives, including Kalanick’s close confidant Emil Michael, who left the company Monday. It’s unclear whether he was fired or quit.
In addition to its culture crisis, Uber is facing a damning trade secrets lawsuit from self-driving competitor Waymo, part of Google’s parent company. That lawsuit led the company to fire the former head of its self-driving program.
In March, Kalanick was caught on video yelling at an Uber driver during an argument over fares and apologized. “It’s clear this video is a reflection of me—and the criticism we’ve received is a stark reminder that I must fundamentally change as a leader and grow up,” Kalanick wrote in an apology to staff. “This is the first time I’ve been willing to admit that I need leadership help and I intend to get it.” To help, Uber has been searching for a chief operating officer to serve as a No. 2 to Kalanick. That search is still underway.
Leadership has pledged Uber will change. Kalanick told a group of more than 100 female engineers at the company that “I want to root out the injustice. I want to get at the people who are making this place a bad place. And you have my commitment.” Board member Arianna Huffington told reporters during a damage control press call in March the company intends to “make Uber the most admired place to work in.” The company has since implemented a confidential employee hotline, doubled its employee-relations team and put in place a formal system to track employee complaints.
Still, a stream of revelations about the company in recent months have led to questions as to how much Uber can change. Uber investors Mitch and Freada Kapor have since at least 2010 been working to “exert a constructive influence” the Uber’s culture, they wrote in an open letter to the board in February. “We feel we have hit a dead end in trying to influence the company quietly from the inside,” they wrote.
Amid the departures and personnel changes as a result of the internal probes, Uber announced last week that it had hired Harvard Business School professor Frances Frei as senior vice president of leadership and strategy. The company called her "one of the world’s most respected authorities on organizational transformation."
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