Uber’s new Chief Executive, Dara Khosrowshahi, has the digital savvy and decisive style that could lift the ride-hailing company out of its troubles.
Prior to being appointed to the top job at Uber, Khosrowshahi was CEO of travel booking site Expedia, a position he had held since 2005. Thus he is no stranger to a digital industry that carries over to life offline, and more specifically, one that moves customers from point A to point B. Based on his achievements at Expedia, supporters believe Khosrowshahi can steer Uber in the right direction. “He’s a global travel executive – he understands competitive dynamics, geopolitical challenges, and the operating challenges of running a sprawling global travel company,” said Brad Gerstner, founder of Altimeter Capital, an investor in both Uber and Expedia.
Earlier in his career Khosrowshahi was an analyst with investment firm Allen & Company. Media mogul Barry Diller was a client, and Khosrowshahi eventually went to work for him at IAC/InterActive Corp. In 2001, Diller acquired Expedia. Four years later, Khosrowshahi became the company’s chief executive. The site was highly successful under his leadership, acquiring several of its competitors in 2015. Shares in Expedia have risen 35% over the past year, despite competition from Priceline and Airbnb.
The changing of the guard comes at a turbulent time for Uber. In June Khosrowshahi’s predecessor Travis Kalanick, a co-founder, was made to step down amidst a series of scandals. The company has been without a leader since. One of Khosrowshahi’s first challenges will be to overhaul the corporate culture. He is also faced with having to grow the business at a time when self-driving is poised to take off in the not-to-distant future. Uber will need to find a relevant place for itself in a changing transportation sector.
Khosrowshahi’s appointment concludes a difficult executive search process. He emerged as the leading candidate from a field of three finalists over a weekend of board meetings, the New York Times reports. One finalist, former General Electric CEO Jeffrey R. Immelt, withdrew due to a lack of support. Some board members felt he did not have the software experience they consider important for the role. Reportedly Uber’s board of directors and executive team were leaning towards Meg Whitman, the CEO of Hewlett Packard, but were unable to agree on terms.
