Expedia CEO Dara Khosrowshahi Plans to Accept Uber's CEO Job

Wednesday, 30 Aug, 2017

He ran a global online travel marketplace that shook up a hidebound industry in the face of regulatory onslaughts.

Khosrowshahi will have to contend with the legacy of his predecessor, Kalanick, Uber's pugnacious co-founder, who was ousted as CEO in June after shareholders representing about 40 percent of the company's voting power signed a letter asking him to step down.

Expedia's CEO Dara Khosrowshahi is set to be named as the new boss of ride-hailing specialist Uber. "Ultimately, both are business models around bringing underutilized assets together with demand, to really optimize supply and demand". The outcome of that case could thwart Uber's autonomous auto ambitions.

Khosrowshahi was third on Uber's list, according to reports. "It wasn't calculated. It was from the heart, and I think I represented the company well".

Khosrowshahi plans to take the offer, Expedia Chairman Barry Diller said on Monday.

Up to Friday's close of $149.26, Expedia's stock had risen about 32 percent this year, compared with a 29.4 percent increase in the Dow Jones Internet Commerce index. "Entrenched interests don't want to give up without a fight. Uber's CEO will not be Meg Whitman".

Khosrowshahi told the Journal that Uber cofounder and former CEO Travis Kalanick will continue to be involved in the company, but he did not clarify in what capacity. Several factions of the board are suing each other.

Another challenge will be working with his predecessor.

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Uber's search for a replacement for Travis Kalanick comes to an end, with Khosrowshahi appointed CEO.

"Khosrowshahi leaving is a major loss for Expedia, which will likely sell off as a result", Cowen & Co analyst Kevin Kopelman wrote in a note. "I'm what you'd call 'professional management, '" Khosrowshahi once said. That resembles descriptions of the often abrasive Kalanick. "For Dara, figuring out that relationship will be important".

A Silicon Valley outsider, Mr Khosrowshahi beat chairman of General Electric Jeff Immelt to the top job.

Khosrowshahi will be tasked with reviving Uber's image after a tumultuous eight months of controversies that plagued the firm and is expected to usher in a new company culture and style of governance. Directors have said they need an independent chair. "They were like hiring a soccer coach for a baseball team". Immelt, however, he ruled himself out of the running, tweeting: "I have decided not to pursue a leadership position at Uber".

Uber reported revenue of $6.5 billion past year and is operating in 674 cities and 83 countries around the world.

By market value, San Francisco-based Uber is triple the size of Expedia Inc., which is headquartered in Bellevue, Washington. Wingz previously had $2.7 million in backing. The firm is also without a chief operating officer, chief financial officer and head of finance. Absolutely, but that's also what makes it fun. Expedia went through a big growth phase just like Uber, and has mastered making money on travel booking transactions, something that's only an aspiration for Uber.

The company's adjusted net loss fell almost 14 percent to $645 million from the same quarter past year, Uber confirmed. The travel platform said at the time it was "investing early" in an array of payment options for its customers.