Uber is one of the fastest-growing firms
Uber might be forced into a down round even if it does raise funds. While not of great consequence for early stage venture capitalist like Menlo Ventures and Benchmark, who in fact pushed Kalanick’s stepping aside, it could possibly upset investors that joined the game late at higher valuations. The investors that could get hurt include Goldman Sachs, Microsoft, New Enterprise Associates, Kleiner Perkins, BlackRock, Morgan Stanley and Citigroup. That would for sure affect the spirits of employees. Another probable explanation exists meanwhile for the board’s forcing of the founding CEO’s resignation. Mind you, what I am about to state is just a hypothesis.
I believe the board saw the necessity for a display of total penitence from an individual who begot what the media has depicted and Holder’s report merely established as an errant, degenerate culture that places meritocracy and growth above human diversity and dignity. The aim as to be expected would be to stop the haemorrhage and hasten the recuperation of Uber’s smitten brand. Do not interpret my stance in the wrong way. I do not perceive Uber as the evil and wicked corporation it has been conceived to be.
And I equally do not reckon it is sensible for any chief executive officer to place his company’s culture into the hands of lawyers, external board directors, and consultants, especially bearing in mind that Camp and Kalanick together control voting rights. Also, the idea of forsaking a firm in disaster in limbo is just as ridiculous. In my opinion, it is either a deliberate move or a huge misstep. Whichever way, I suppose it is really ill-judged.