Uber's fractured eight-member board voted to hire Khosrowshahi late Sunday, capping three days of meetings and the withdrawal of once-top candidate Jeffery Immelt, former CEO and still chairman of General Electric, two people briefed on the decision said.
There's still a bumpy road ahead at Uber.
According to the Wall Street Journal, Uber is cooperating with the US Department of Justice on a preliminary investigation into whether the ride-sharing company violated the Foreign Corrupt Practices Act. While the privately held Uber is not required to disclose such information, its ongoing litigation with Alphabet Inc.'s (GOOGL) (GOOGL) self-driving vehicle unit, Waymo, revealed that it handed out $250 million worth of Uber stock to lure engineer and executive Anthony Levandowski from the Google parent company. Kalanick called the suit "a fabrication".
The embattled startup suffered losses of $645 million in the quarter ending June 30th. It is looking to bring in additional capital from investors including SoftBank, a move that should buy time before an initial public offering.
Although Kalanick's support of President Donald Trump was not specifically cited as a reason for his ouster, Uber's activist Board of Directors, led by Benchmark Partners, appears to have found a new CEO that dislikes President Donald Trump.
While acquisitions may not make as much sense for Uber, observers said they expect that he might pursue more worldwide partnerships, similar to those Uber forged in China and Russian Federation, in which it took a stake in local companies, while ceding them the ride-hailing market in their country.
"The American dream is, you come here, you believe in democracy, you believe in the Constitution, you work hard, and you can make it. It requires real candor and real honesty".
Khosrowshahi may not have been offered the new job, if not for Uber's bickering board. "I love Expedia. I was fully intending to stay here". "I view daily, short-term stock volatility as really about sentiment", he said. He said to have held on to the CEO's chair despite Uber's image crumbling like a house of cards on his watch only on account of being the company's biggest shareholder.
Khosrowshahi, 48, has been CEO of Expedia for 12 years.