Ride-sharing company Uber's board has rallied behind chief executive Travis Kalanick and promised that it would revamp the company's corporate culture and reform its business practices.
In a conference call with reporters on March 21, board member Arianna Huffington said full support has been extended to the company, which is seeking to overhaul its injured reputation following some recent events.
Huffington expressed that a multipronged action plan is underway to rejuvenate the company after allegations clouded its business practices and discussions on internal matters affected its public image. It will also look for a chief operating officer to assist the CEO.
"The board is confident in Travis, and we are proceeding ahead with the search for the COO," Huffington said.
Multipronged Action Plan
Overhauling the human resources department is a matter of high priority and it will be done to enhance relationships with drivers and garner feedback from concerned employees.
A report on workforce diversity will be released in March and an investigation into Uber's workplace culture will be wrapped by the end of April.
The reputation of Uber was hurt by the allegations mounted by a former employee alleging sexual harassment and bungling by the human resources department.
Fierce criticism followed after allegations surfaced that Uber was using software to hoodwink law enforcement agencies.
Kalanick also came under fire for harming the culture of the company after the leak of a video where the CEO was seen in an altercation with a driver. Kalanick later apologized for the incident and assured that leadership assistance will be taken. Uber was also embarrassed by the exodus of senior executives, including Jeff Jones, the company's president.
At the conference call, Huffington was joined by senior executives Liane Hornsey and Rachel Holt. Bill Gurley, Uber board member and venture capitalist, said he would assist the company in the executive search for recruiting a chief operating officer.
Michigan Puts Curbs On Ride-Sharing Companies
Meanwhile, Michigan has tightened rules for ride-sharing companies like Uber in a bid to ensure a level playing field between ride-sharing and ride-hailing businesses and the cab industry.
Under a new law, Michigan will regulate Uber and Lyft the same way limousines and taxicabs are regulated.
The new law, effective March 21, mandates that all ride-sharing companies should conduct criminal background checks on drivers and old vehicles must be inspected by a licensed mechanic.
Eligible drivers should be at least 19 years old, have no record of sexual offenses, and should not be listed on the National Sex Offender public website. They must not have any record of committing a major driving violation.
The Michigan Licensing and Regulatory Affairs insists that ride-sharing companies must register with it and pay an annual fee, which ranges from $100 to $30,000.
"We are thrilled the Michigan legislature has established statewide ride-sharing regulations that will allow Uber to continue providing the flexible income opportunities and safe, reliable transportation options Michiganders have grown used to," Uber public affairs associate Charity Jackson said.
