More problems in “UBER” land and investors are fed up

If things couldn’t get any worse for Uber … after all the ruckus of finding out Uber was supporting Trump, the company is under fire yet again. Word has it the company is in hot water with two of its main investors – Freada Kapor Klein and Mitch Kapor, who are upset the company hired insiders to investigate its alleged “toxic” and “destructive” corporate culture following charges of sexism.

Uber CEO and sexual harassment allegations
Uber CEO Travis Kalanick

In an open letter to the Uber Board and investors published on Medium, the investors touched on the allegations of sexism, sexual harassment and bad management by Susan Fowler. Some of the highlights of the letter:

  • Uber has been here many times before, responding to public exposure of bad behavior by holding an all-hands meeting,, apologizing and vowing to change, only to quickly return to aggressive business as usual.
  • Investors in high growth, finally successful companies rarely, if ever, call out inexcusable behavior from founders or C-suite executives.

Their view? Both of these patterns must change.

What the Kapors had to say

“We are speaking up now because we are disappointed and frustrated; we feel we have hit a dead end in trying to influence the company quietly from the inside. If we believed it was too late for Uber to change, we would not be writing this, but as investors, it is now up to us to call out the inherent conflicts of interest in their current path.”

The Kapors don’t think Eric Holder’s firm, nor Ariana Huffington, who is on the board, can come up with an accurate analysis of the current culture, or recommend steps for fixing the issue.

While they truly want to see the company succeed, they are adamant in their sentiment that success is more than making money. Their charge? Uber must respond accordingly to get this right, as former, current, prospective employees, and the entire world will be watching.

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