Leadership Scandal Recovery: What Uber Changed First

Uber's recovery from its 2017 leadership scandal worked in three dated steps: an outside investigation that produced 47 recommendations the board adopted, a CEO change after investors demanded it, and a 2018 policy that ended forced arbitration for individual sexual assault and harassment claims. The report alone did not stop the pressure, because the CEO resigned eight days after it was released.

By Ronn Torossian. Last updated: October 28, 2026. Every date and figure below is attributed to a named news report. Corrections are welcome.

What started the Uber leadership crisis in 2017?

The Uber leadership crisis started when Susan Fowler, a former Uber engineer, published a blog post in February 2017 describing sexual harassment and a human resources department that stonewalled her, according to News On 6. Reuters, as published by Fortune, reported that Uber then hired the law firm Covington and Burling, led by former U.S. Attorney General Eric Holder, to review its culture and workplace practices.

A second incident compounded public scrutiny that same month. A video released in February showed Chief Executive Travis Kalanick berating an Uber driver who had complained about falling wages, after which Kalanick apologized publicly and said he would seek leadership help, per the same Reuters report.

How did Uber respond before the CEO left?

Uber responded before its chief executive left by publishing the investigation findings and voting to adopt all 47 recommendations. The Drive reported that the Holder report contained 47 recommendations, the first titled "Review and Reallocate the Responsibilities of Travis Kalanick," and that the Uber board voted unanimously to adopt all of them.

The recommendations extended beyond individual executives. Agence France-Presse, as published by Phys.org, reported that the report urged Uber to reformulate its written cultural values, consider an independent board chair and create an ethics and culture committee. Kalanick announced a leave of absence the same week, per Global News.

What did the leadership change signal?

The Uber leadership change signaled that outside investors, not company management, controlled the final outcome. Reuters reported that five large investors, including Benchmark, demanded in a letter that Kalanick resign immediately, leading Kalanick to step down as chief executive on June 21, 2017.

The board chose Dara Khosrowshahi, the chief executive of Expedia, as the replacement. Agence France-Presse, as published by The Jakarta Post, reported the selection on August 28, 2017, and noted that Benchmark had sued Kalanick earlier that month.

Which policy change showed the new leadership meant it?

The policy change that proved new leadership commitments was ending forced arbitration for individual assault and harassment claims. On May 15, 2018, chief legal officer Tony West announced that Uber would no longer require riders, drivers or employees to arbitrate individual claims of sexual assault or harassment, according to USA Today, and CBS News reported that settlements would no longer require confidentiality agreements.

The change answered a direct public challenge. Fowler had asked Khosrowshahi on Twitter in March 2018 to end forced arbitration, per Refinery29, and West wrote that giving survivors control of how they pursue claims was important, as quoted by USA Today.

The policy shift also had clear operational boundaries. The Financial Times, as summarized by the Business and Human Rights Resource Centre, reported that it applied only to individual claims, not class actions, and only in the United States. Microsoft had ended forced arbitration for harassment claims five months earlier, in December 2017.

What can other companies take from the Uber case?

Other companies can draw four practical operational lessons from the Uber recovery timeline.

• Publish the outside review's recommendations and say the board adopted them, as Uber did within days of the report.
• Expect the review to raise the question of who leads, because the CEO's role was the first recommendation.
• Change one policy that costs the company something, as Uber did with arbitration, instead of only announcing values.
• State the limits of each change in the same announcement, because critics will find them, as they did with class actions.

For more cases with the same structure, see the reputation management case studies, the PR crisis examples page and the crisis communications case study library. The corporate apology guide covers what a strong apology contains, and the managing negative press guide covers the first 24 hours. The wider discipline is in the reputation management pillar.

Frequently asked questions

What was in the Holder report on Uber?

The Holder report contained 47 recommendations, according to The Drive. They included reducing the chief executive's responsibilities, reformulating written cultural values, considering an independent board chair and creating an ethics and culture committee.

Why did Travis Kalanick resign from Uber?

Travis Kalanick resigned on June 21, 2017, after five large investors, including Benchmark, demanded in a letter that he step down, according to Reuters as published by Fortune.

Who replaced Kalanick as Uber's chief executive?

Dara Khosrowshahi, then chief executive of Expedia, replaced Travis Kalanick as Uber chief executive in late August 2017, according to Agence France-Presse and the Associated Press.

Did Uber end forced arbitration for all claims?

Uber did not end forced arbitration for all legal disputes. The May 2018 policy change covered only individual sexual assault and harassment claims in the United States and excluded class actions, according to the Financial Times as summarized by the Business and Human Rights Resource Centre.