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Travis Kalanick at an event in New Delhi on December 16. Uber began searching for a second-in-command to help the embattled chief executive. Image Credit: AFP

NEW YORK: Uber CEO and co-founder Travis Kalanick has told The New York Times that he has resigned.

Kalanick has resigned as chief executive officer of Uber Technologies Inc. after a shareholder revolt, the paper reported citing unidentified people familiar with the matter.

Five of Uber's major investors, including Benchmark Capital, demanded he resign on Tuesday, the newspaper said.

Kalanick will remain on the board, it said.

While Kalanick founded Uber in 2009, he has come under pressure after a series of controversies.

Complaints

Kalanick and his confidant and head of business, Emil Michael, were involved in at least two incidents — the mishandling of an Indian rape victim’s medical records and a visit to a Seoul karaoke bar that reportedly prompted a human resources complaint — came up in the course of a probe commissioned by the company, Bloomberg reported.

The investigation by Covington & Burling LLP,  the law firm of former US Attorney General Eric Holder, and a separate examination of HR matters by Perkins Coie LLP were provoked by allegations of sexual harassment and discrimination from former employee Susan Fowler in February.

The scope soon expanded to include over 200 HR claims and resulted in the firings of more than 20 employees.

Eric Alexander, who oversaw business in Asia, departed amid reports of the India rape controversy earlier this month.

In addition to responding to a cavalcade of scandals, Kalanick has had to grapple with the accidental death of his mother, whose funeral was Friday.

Hard-charging style

While building the world's biggest ride-hailing service over the past eight years, Uber developed a reputation for cutthroat tactics that have occasionally outraged government regulators, drivers, riders and its employees.

The company's hard-charging style also has caused legal headaches. The US Justice Department is investigating Uber's past usage of phony software designed to thwart regulators.

Uber also is fighting allegations that it's relying on a key piece of technology stolen from Google spin-off Waymo to build self-driving cars.

Drivers aren't the only people Uber is trying to treat better.

After an internal investigation uncovered sexual harassment, bullying and other boorish behavior, Uber fired more than 20 employees and pledged to create a more harmonious culture.

A more extensive report from the law firm of former US Attorney General Eric Holder chastised Uber's leadership and recommended changes that Uber's board adopted.

Uber also said Kalanick was taking an indefinite leave amid criticism of his management style and following the death of his mother in a boating accident.

As part of its penance, Uber emailed a letter to riders in New York City last week apologizing for its missteps.

Uber also has wrangled with drivers in the courts over its insistence on classifying them as contractors instead of employees to avoid paying benefits and overtime. The company so far has prevailed.