Uber CEO Travis Kalanick announced that he is quitting Donald Trump's economic advisory council, a day before the body is supposed to convene. The move has been triggered by the new administration's blanket immigration and refugee ban imposed on seven Muslim countries.
According to Kalanick, he does not want the public to interpret his association with Trump and the council as an endorsement of the administration's policies.
Kalanick vs. Trump Policy
In a letter circulated within Uber, the Uber CEO explained the move in detail.
"Earlier today I spoke briefly with the president about the immigration executive order and its issues for our community," Kalanick wrote. "I also let him know that I would not be able to participate on his economic council. Joining the group was not meant to be an endorsement of the president or his agenda but unfortunately it has been misinterpreted to be exactly that."
Kalanick has previously criticized the immigration ban, labeling it as unjust. He also set up a legal defense fund to help affected employees and their families.
Those moves, however, have failed to impress some sectors.
Pressure On Uber
Uber, for example, has been attacked for not joining the one-hour taxi strike that was staged in New York in response to Trump's executive order. Shortly thereafter, the campaign #DeleteUber surfaced at Twitter with proponents saying it was meant to protest Kalanick's involvement in Trump's business council.
The backlash was quite strong so that the Lyft ride-hailing app saw an uptick in download rates, trouncing Uber for the first time last Jan. 29. As members of the ride-hailing public delete Uber, its closest competitor has been catapulted from the 39th spot to the seventh position in the Apple App Store.
Elon Musk And Trump
Kalanick's decision could probably stem the bleeding considering his swift action. The case may not be the same for other tech CEOs sticking with Trump and his business council.
Elon Musk is an excellent example. He has maintained that it would be better to sit on the council to help influence policymaking. In a recent Twitter post, he has trumpeted that he is seeking council consensus to present Trump amendments to the executive order.
Please read immigration order. Lmk specific amendments. Will seek advisory council consensus & present to President. https://t.co/qLpbsP4lEk
— Elon Musk (@elonmusk) January 29, 2017
Well, Tesla seems to be bearing the brunt of that decision. There are already whispers that the recent reservation cancellations for the Tesla Model 3 EV were driven by Musk's Trump affiliation.
Tesla has to refund the $1,000 deposit for the Model 3 reservation for canceled orders. It is not yet clear how this will impact production and profitability since they don't seem as widespread. But if the cancellations snowball, Tesla could kiss the year-long preorder backlog for its cars goodbye.
