More Troubles in Uber

The problems in Uber are becoming deep especially in a row involving their former chief executive Travis Kalanick. The former chief decided to leave his position at the company and has since maintained a low profile. Just the other day, a new chief executive known as Dara Khosrowshahi was appointed. The new chief was brought to cool off temperatures in the company. However, a source close to the company yesterday said that the struggle for power is still on in the company. The fight is taking place between who owns what stock and who has what voting powers. As a result, the company and one of its major investors known as Goldman Sachs made a move to reduce the voting powers held by the former chief executive. In response, the former chief executive officer took a bold move to reassert his control in the company. At the moment, Mr. Kalanick is said to have outsized power when it comes to voting in the company. He decided to add Ursula Burns and John Thain to the company’s board. While Mr. Burns is the former chief executive of Xerox, Mr. Thain is the former chief executive of New York Stock Exchange and Merrill Lynch.

The former chief executive later said that since the move involves reducing the voting rights of a member, all board members should be present for deliberation. The company later released a statement saying that the move by Mr. Kalanick was a surprise. They said that they were working hard to ensure that there is world-class governance in the company. The latest move is also an explanation of the deep divisions that exist in the company. Earlier in June, the former chief executive stepped down after some investors threatened to leave if he stayed. He, however, retained a board seat. He has been fighting with Benchmark, which is a venture capital firm that wants him gone. The company previously complained that the former chief executive had too much power. As a result, the company moved to court to sue Mr. Kalanick. The case was thrown into arbitration allowing him to save face from issues that would have been disclosed in court. The venture capital firm refused to comment about the current issue when contacted by journalists. These latest divisions only make things complicated for the new chief who has to work with a divided board. The company was recently kicked out of London.