Uber’s CEO Leaves, but Its Battles Won’t Go Away WSJ
Uber co-founder and CEO Travus Kalanick has resigned, after invetstors pressured him to step down following six months of scandal and setbacks.
Uber for years has faced opposition in the U.S. and abroad from taxi companies, regulators and -increasingly-its own disgruntld drivers.
Still, Uber’s aggressiveness around the world has often been viewed as interlinked with Mr.Kalanick’s own pesonality, and the change of leadership could offer a fresh start with some of the authorities with which Uber has tangled.
In Asia, Uber faces a cluthch of fast-growing, homegrown startups that are capitalizing on factors such as local knowledge and better realationshios with regulators in the battle for ride-hailing turf. Singapore-based startup GrabTaxi Holdings Pte. and Indonesia’s Go-Jek, a motorcycle-hailing app, are both providing fierce competition in Southeast Asia.
CEO’s Resignation Is the Least of Uber’s Problems in Asia WSJ
Chased out of China by local rival, ride-hailing giant face more of the same in India and Southeast Asia.
Travis Kalanick’s ouster as chief executive of Uber Technology Inc. dealt a potential blow to its efforts in Asia, where the ride-hailing company is locked in a multibillion-dollar battle with local rivals.
Uber retreated from China last year, selling its business there following a costly battle with homegrown rival Didi ChuXing Technology Co. Afterward, Uber said it was sharpening its focus on India and Southeast Asia. But investors and analysts say the San Francisco company’s worries at home may add momentum to fast-growing startups capitalizing on a home-filed advantage, local knowledge and good relationship with regulators.
In the two largest markets here, India and Indonesia, Uber is under serious attack by Ola and Grab, respectively.
Southeast Asia, home to more than 600 million people, is another key battleground.
Indonesia’s Go-Jeck, a fast-growing motocycle-hailing startup backed by KKR, Warburg Oincus LLC and other, launched its app in 2015 has expanded to provide food and package delivery, on-demand beauty and cleaning serivices and more.
Gear Change: Travis Kalanic step down as chief executive of Uber The Economist
Mr Kalanic failed to manage the fallout from a series of high-profile blunders and scandals. On June 20th he resigned as chief executive officer of the firm he co-founded in 2009.
Uber is facing several crises, including senior executive departures, a lawsuit over alleged intellectual-property theft, claims about sexual harassment and a federal probe into its use of potentially illegal software to track regulators.
Uber will not change overnight.
Mr Kalanick’s departure should be enough to placate some alienated customers. Regulators may treat Uber kindly,too. Abroad, its scandals have barely registered.
The next chief executive will need to decide whether to chase growth and endure continued steep loss, or cut back on international expansion in order to make more money.