After a string of scandals and embarrassments, Uber's embattled CEO Travis Kalanick was forced to resign. The assumption is that he was pushed out for bad behavior. The truth is more prosaic. The other problems compounded the basic one: He lost a lot of money. Uber lost $2.8 billion on $6.5 billion of revenue in 2016.
Many years ago, Fred Wilson, one of the top venture capitalists in the world, famous for his role in companies such as Twitter and Zynga, put it succinctly: "VCs have control when things don't work. Entrepreneurs have control when they do." That's common sense in most of the business world. But as the Uber debacle shows, legal provisions such as board seats or shareholder voting rights matter much less than actual performancein Silicon Valley too.
The prevailing mythos of Silicon Valley says that it is visionary founder-CEOs -- think Bill Gates, Steve Jobs, Mark Zuckerberg -- who create great companies and need to be insulated to work their magic. Venture capitalists and money men, the thinking goes, would otherwise get legal control of the company, oust the great founders and lead companies to their doom. Founders should be allowed to retain legal control of the company, something that, in a highly competitive Silicon Valley funding environment, many VCs have agreed to.
And yet, Kalanick, one of those visionary founders, was just ousted from the company despite having a great deal of control. One of Uber's key investors, Benchmark Capital's Bill Gurley, a legendary venture capitalist, seems to have played a crucial role in Kalanick's ouster, even though technically he did not have the authority on the board to fire him.
Kalanick controlled the majority of seats on Uber's board, as well as a majority of voting rights for shareholders. However, that ended up not meaning much: Uber, which is losing money by the bucketful, arguably a necessary move to build a network effect which will reap profits later, needs investors. Having the majority voting rights in a company that gets shunned by investors because you're reckless is not worth a lot.
Steve Jobs never had formal legal control at Apple. He was ousted from the company in the 1980s because the visionary products he shepherded -- the Apple Lisa desktop computer and then the Mac -- were commercial failures. When he returned to the company in 1998, he put out a string of highly successful products -- first the iMac, then the iPod, and of course the iPhone -- that brought the company back from the brink and then ensured strong profitable growth; his leadership was never subsequently questioned.
Facebook has had various growing pains as a fledgling social network, but its user numbers and revenue never stopped growing. If the company had a MySpace-like trajectory, it is unlikely that Zuckerberg's formal legal control of the company's board and shareholder voting rights would have protected him from investor pressure to make radical changes, up to stepping down. Many have fretted about the corporate governance implications of Snapchat going public by releasing only non-voting stock to the public; but if the company ends up cratering CEO Evan Spiegel is likely to be outgoing. Similarly Rupert Murdoch was able to survive phone-tapping scandals in the U.K. and the problems at Fox in large part because of the robust results he continued to generate for News Corp.
Some companies can lose money but still do well because they're growing, capturing markets and building strategic advantage. Uber is not only losing money -- and it's burning through cash at an enormous rate -- but clearly it is also going through a crisis, with executive turnover, a stalled self-driving car project, myriad lawsuits and other problems.
Meanwhile, Microsoft is one of the most profitable companies on Earth, but it is growing tepidly and is getting outplayed by competitors in its most strategic markets. Its co-founder and CEO Steve Ballmer was not brutally defenestrated, but he was certainly nagged to pass on the reins by board members and investors until he felt he had to go. It seems obvious that if Microsoft under Ballmer had beaten Google in search, Apple in mobile and Amazon in cloud, he would be CEO of Microsoft today, and would be globally lauded as a turnaround artist.
As an Uber watcher (and mostly satisfied customer) Kalanick's ouster feels bittersweet. Uber's aggressive, macho culture caused problems; but it also seems clear that without it Uber would never have managed to become the behemoth it is today, one which has changed transportation forever, and that culture came from Kalanick. His ouster is another reminder that meteoric growth and arresting vision is never enough. A CEO who is making a healthy profit for his firm has a secure position; but, even in Silicon Valley, a company that needs investors to stay afloat will sacrifice a founder if needed, whatever the company's by-laws.
The Washington Post
Sat Jun 24 2017
![Uber's boss didn't resign for bad behavior Uber's boss didn't resign for bad behavior](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2017-02/71486083582_TravisKalanick.jpg)
He lost a lot of money. Uber lost $2.8 billion on $6.5 billion of revenue in 2016.
AWANI Borneo [16/07/2024] – SUKMA 2024 | Sentiasa berwaspada | Pintu sempadan
AWANI Borneo Selasa, 16 Julai 2024 bersama Fauzi Zin.
- SUKMA 2024 : Nasib acara takraw wanita diketahui Khamis ini.
- Ribut petir diramal di Sabah, Bomba saran penduduk berhati-hati.
- Urusan imigresen di sempadan, Malaysia-Brunei adakan rundingan.
- SUKMA 2024 : Nasib acara takraw wanita diketahui Khamis ini.
- Ribut petir diramal di Sabah, Bomba saran penduduk berhati-hati.
- Urusan imigresen di sempadan, Malaysia-Brunei adakan rundingan.
![Hukuman penjara bapa lakukan serangan seksual ke atas 3 anak perempuan dikurangkan Hukuman penjara bapa lakukan serangan seksual ke atas 3 anak perempuan dikurangkan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-04/51714453013_courtgavelmahkam.jpg)
Hukuman penjara bapa lakukan serangan seksual ke atas 3 anak perempuan dikurangkan
Dalam penghakimannya, Che Mohd Ruzima berkata perayu gagal membuktikan bahawa Mahkamah Sesyen terkhilaf dalam memutuskan kes itu.
Malaysia-Brunei adakan rundingan mudahkan urusan Imigresen
Malaysia dan Brunei akan mengadakan rundingan bagi memudahkan proses keluar masuk rakyat kedua-dua negara.
![Pan-gon mahu kekal hubungan baik dengan Malaysia Pan-gon mahu kekal hubungan baik dengan Malaysia](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81721124936_KimPanGon.jpg)
Pan-gon mahu kekal hubungan baik dengan Malaysia
Bekas ketua jurulatih Harimau Malaya Kim Pan-gon mahu mengekalkan hubungan baik dengan skuad itu biarpun tidak lagi bersama.
Kos pampasan tanah fasa 1B proses Projek LPB Sabah RM1.2 bilion - Alexander
Anggaran kos pengambilan balik tanah bagi keseluruhan Fasa 1B proses pengambilan tanah dan penilaian pampasan tanah bagi Projek Lebuh Raya Pan Borneo Sabah (LPB Sabah) berjumlah RM1.2 bilion.
Sentiasa berhati-hati, ribut petir diramal berlaku di Sabah
Orang ramai khususnya yang tinggal di kawasan berisiko di Sabah disaran agar bersiap siaga terutama dari segi perubahan cuaca yang tidak menentu yang seterusnya akan mengakibatkan bencana banjir dan pokok tumbang.
Nasib acara sepak takraw wanita diketahui Khamis ini
Nasib acara sepak takraw wanita berpasukan dalam Sukan Malaysia (SUKMA) edisi ke-21 di Sarawak akan ditentukan dalam Mesyuarat Jawatankuasa SUKMA Peringkat Kebangsaan pada Khamis ini.
JPBM Sabah serah jentera khas buat pasukan sukarela
Jabatan Bomba dan Penyelamat Malaysia (JBPM) negeri Sabah sedang dalam perancangan untuk menyerahkan jentera khas, iaitu Volunter Fire Rescue Tender (VFRT) untuk Pasukan Bomba Sukarela (PBS) di Sabah.
Sarawak akan pertahan pingat sukan Muay Thai edisi lalu
Skuad Sarawak akan berusaha mempertahankan masing-masing dua emas, perak dan gangsa dalam kejohanan SUKMA yang dimenangi dalam edisi lalu.
![Usaha pujuk Pan-gon tidak berhasil - Yusoff Mahadi Usaha pujuk Pan-gon tidak berhasil - Yusoff Mahadi](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/81721124841_TBFAM.jpg)
Usaha pujuk Pan-gon tidak berhasil - Yusoff Mahadi
FAM pernah berusaha memujuk Kim Pan-gon untuk terus mengemudi skuad Harimau Malaya hingga kontraknya tamat secara rasmi pada akhir tahun depan.
!['Bill Gates kenal Dolly Chaiwala, Dolly Chaiwala tak kenal Bill Gates' - Netizen 'Bill Gates kenal Dolly Chaiwala, Dolly Chaiwala tak kenal Bill Gates' - Netizen](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-03/71709789971_TBBillgatesjpg.jpg)
'Bill Gates kenal Dolly Chaiwala, Dolly Chaiwala tak kenal Bill Gates' - Netizen
Gates dipercayai singgah menikmati teh susu Dolly sewaktu hadir ke majlis praperkahwinan anak orang terkaya Asia yang diadakan selama tiga hari di India.
![AI akan ubah kehidupan manusia dalam masa lima tahun, kata Bill Gates AI akan ubah kehidupan manusia dalam masa lima tahun, kata Bill Gates](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-06/51686895515_billgates.jpg)
AI akan ubah kehidupan manusia dalam masa lima tahun, kata Bill Gates
Bill Gates percaya sejarah menunjukkan setiap teknologi baharu hadir ketakutan dan menyusul dengan peluang baharu.
![Twitter mula buang tanda pengesahan biru, Bill Gates dan Kim Kardashian antara 'mangsa' Twitter mula buang tanda pengesahan biru, Bill Gates dan Kim Kardashian antara 'mangsa'](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-03/51680060544_TwitterVerifiedlo.jpg)
Twitter mula buang tanda pengesahan biru, Bill Gates dan Kim Kardashian antara 'mangsa'
Twitter pada Khamis mula membuang tanda pengesahan daripada beribu-ribu akaun, termasuk akaun tokoh terkenal.
![Gates syor cipta benih ajaib tangani isu perubahan iklim Gates syor cipta benih ajaib tangani isu perubahan iklim](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2020-04/51585717121_BillGates.jpg)
Gates syor cipta benih ajaib tangani isu perubahan iklim
Apa yang diperlukan katanya, adalah inovasi dalam teknologi pertanian yang boleh membantu memulihkan krisis tersebut.
![MBKM, agensi berkaitan perlu lebih giat majukan industri penerbitan buku - PM MBKM, agensi berkaitan perlu lebih giat majukan industri penerbitan buku - PM](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2022-06/61654351119_PerdanaMenteri.jpg)
MBKM, agensi berkaitan perlu lebih giat majukan industri penerbitan buku - PM
Perdana Menteri Datuk Seri Ismail Sabri Yaakob mahu budaya membaca dalam kalangan rakyat di negara ini dipupuk secara berterusan.
![Amaran Bill Gates tentang wabak, serangan cacar jadi kenyataan Amaran Bill Gates tentang wabak, serangan cacar jadi kenyataan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2016-01/61454037181_ChinaPolitic.jpg)
Amaran Bill Gates tentang wabak, serangan cacar jadi kenyataan
Gates menyarankan pemerintah melabur puluhan bilion dolar untuk R&D yang didakwa bakal menelan kos yang tinggi.
![Berita antarabangsa pilihan sepanjang hari ini Berita antarabangsa pilihan sepanjang hari ini](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2022-03/61648036783_TBBERITAx.jpg)
Berita antarabangsa pilihan sepanjang hari ini
Antara pelbagai berita luar negara yang disiarkan di Astro AWANI, berikut adalah antara yang paling menjadi tumpuan sepanjang Isnin, 9 Mei 2022.
![COVID-19: Bill Gates nafi suntikan vaksin boleh jejak manusia COVID-19: Bill Gates nafi suntikan vaksin boleh jejak manusia](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-01/81611808844_BillGates.jpg)
COVID-19: Bill Gates nafi suntikan vaksin boleh jejak manusia
Gates sentiasa menafikannya tetapi penafian yang dilakukan itu belum cukup untuk memadamkan teori tersebut.
![COVID-19: Pandemik terburuk, lebih dahsyat mungkin melanda dunia - Bill Gates COVID-19: Pandemik terburuk, lebih dahsyat mungkin melanda dunia - Bill Gates](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-01/71611735008_BillGates.jpg)
COVID-19: Pandemik terburuk, lebih dahsyat mungkin melanda dunia - Bill Gates
Gates beri amaran kemungkinan terdapat varian "lebih mudah tersebar dan lebih berbahaya" berbanding varian Delta dan Omicron."
![Bebas karbon: Negara kaya perlu main peranan - Bill Gates Bebas karbon: Negara kaya perlu main peranan - Bill Gates](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2022-01/51642657156_billgates.jpg)
Bebas karbon: Negara kaya perlu main peranan - Bill Gates
Negara-negara kaya perlu memainkan peranan masing-masing dalam menjayakan penghasilan produk teknologi hijau di peringkat global.