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Abu Dhabi, UAESaturday 23 June 2018

New Uber chief sees IPO in one to three years

Plans include rebuilding Uber’s culture and growing market share

Dara Khosrowshahi, the new chief executive of Uber described himself as a "fighter". Andrew Gombert / EPA
Dara Khosrowshahi, the new chief executive of Uber described himself as a "fighter". Andrew Gombert / EPA

Uber Technologies' new chief executive Dara Khosrowshahi told employees the ride-services company would change its culture and may go public in 18 to 36 months.

Mr Khosrowshahi, who led travel-booking site Expedia for 12 years, made the remarks as he introduced himself to Uber’s workforce on Wednesday during an all-staff meeting at its San Francisco headquarters.

His plans include rebuilding Uber’s culture and growing market share as well as possibly conducting an initial public offering in 18 to 36 months, according to people who attended the meeting. It is common for venture capital-backed companies to signal an IPO at a vague time in the future.

“This company has to change,” Mr Khosrowshahi told employees, according to the Twitter feed of Uber’s communications team. “What got us here is not what’s going to get us to the next level.”

Mr Khosrowshahi said Uber needed to stabilise itself but also take what he called “big shots”.

The appointment of Mr Khosrowshahi, who described himself as “a fighter”, comes as Uber is trying to recover from a series of crises that culminated in the ousting of former chief executive Travis Kalanick in June. It is also a key step toward filling a gaping hole in its top management that at the moment has no chief financial officer, head of engineering or general counsel.

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In his first meeting with Uber employees, Mr Khosrowshahi emphasised recruiting new talent - particularly a chief financial officer - as well as a chairman to help him run the board, according to tweets from Uber.

Mr Kalanick, who attended Wednesday’s staff meeting, welcomed his replacement.

“Casting a vote for the next chief executive of Uber was a big moment for me and I couldn’t be happier to pass the torch to such an inspiring leader,” Mr Kalanick said.

Mr Khosrowshahi inherits a dysfunctional board that has been divided by a lawsuit filed by investor Benchmark Capital against Mr Kalanick. The lawsuit, which seeks to force him off the board and rescind his ability to fill two board seats, has caused shareholder infighting and complicated the CEO search.

The Delaware judge Sam Glasscock on Wednesday brought that dispute closer to a resolution when he stayed the lawsuit and moved it to arbitration, which moves the legal fight out of the public eye and hands a victory to Mr Kalanick.

“I think what we have here is a political battle that belongs in the boardroom and not the courtroom,” said Donald Wolfe, an attorney for Mr Kalanick.

Judge Glasscock stopped short of dismissing the lawsuit, as Kalanick had requested, because of concerns about the impact the dispute might have on other Uber shareholders who may also want to take legal action.

The board had already selected Mr Khosrowshahi as Uber’s next chief executive in a vote last Sunday. But the firm and its board did not speak publicly on the decision until Tuesday evening, as contract negotiations were ongoing.