'Why would I jump into that mess': How a reluctant Dara Khosrowshahi got recruited as Uber CEO

Uber CEO Dara Khosrowshahi has revealed he had initially refused to apply for his current role but Spotify co-founder Daniel Ek persuaded him while they were hanging out back in 2017. In a recent podcast, Khosrowshahi shared how he was comfortable and happy as the Expedia CEO and wasn't really looking for a change when an Uber recruitment executive got in touch with him. This was in the middle of a crisis when one of Uber's investors, Benchmark Capital, sued Uber co-founder and then-CEO Travis Kalanick accusing him of fraud, breach of fiduciary duty and misconduct.

Uber also faced allegations of toxic work culture and sexual harassment at workplace, apart from controversies around boardroom conflicts and power struggles. Like everybody else, Khosrowshahi was following the developments and little did he know he'd be the person who'd eventually come in and fix things.  

Also Read: Amazon Prime members can now get cheaper Uber rides: Here’s how to avail the offer
 
"I was reading about news just like everyone else. It was all over the place. It was crazy, everything going on, what led to it, you know, the battle between Travis and Benchmark [Benchmark Capital] and all that stuff. It was fascinating as an observer. I never ever imagined that I would then play a part. A headhunter called me about this role. I'm like no way like: No thank you, goodbye," Khosrowshahi said in a new episode of the podcast 'Acquired'.

He shared that he was perfectly fine as the CEO of Expedia and had great relations with Chairman Barry Diller, but an informal meeting with Swedish entrepreneur Daniel Ek during the annual Sun Valley Conference, hosted by investment banking firm Allen & Company, in Idaho would be the precursor to him becoming Uber's next CEO. In fact, as Khosrowshahi would find out, it was Ek who had referred him to the recruitment executive at Uber.

"I love working for Barry [Diller], I was good. And then I was at the Sun Valley Conference having drinks with Daniel Ek. And he's like Dora did you get the call from a headhunter about the Uber job? I think you'd be perfect for the job," Khosrowshahi recollected the Spotify co-founder asking him.

Khosrowshahi also shared that he was not interested but the Spotify co-founder convinced him to apply for the role.  

"I'm like dude why would I ever do that, like I'm happy. Why would I ever jump into that mess. And he [Daniel Ek] looks at me with those like piercing Scandinavian eyes. He's like 'Dara since when is life about having fun? It's about having impact. This is important. You can do this'. And I'd had a couple of drinks, and the alcohol was flowing and we were having fun, and my wife says 'yeah, you can do this!' I'm like 'Yeah, I could do this!'"

"So, the next day, I called the head-hunter back. And, I said let's talk. The next step was for me to meet a board member and we had dinner. He was very charming and he kind of started the recruitment. It was pretty cool," Khosrowshahi shared.

Once things were finalised, Khosrowshahi told the Uber board that they would have to keep the recruitment talks a secret.

Also Read: Trouble for Rapido, Uber! Supreme Court stays Delhi HC order allowing bike taxis to ply

"I told them. I said, upfront, listen 'I have a job and it's a great job. So, I just want you to know like the nanosecond my name shows up in the news, I'm out of here'. But I had to be realistic that it could show up in the news. It's amazing that it didn't," he said.

But before he could join Uber, he had the difficult task of informing Expedia Chairman Barry Diller, who is also the founder of the Fox Broadcasting Company.

"I called up Barry because I couldn't put Barry in a situation or myself in a situation. I'd worked with him 13 years, and even before as a banker. He and I have an incredible relation. I owe like so much to him. I couldn't take the risk of his seeing it [Khosrowshahi joining Uber as CEO] in the press and the consequences of that, loss of trust," he said.

"So, I called him up. I said Barry, headhunter called me about Uber. I'm going to talk to them. And he's like 'you're effing crazy' and hung up on me. I say like 'oh my God, I'm gonna get fired'. And nothing, dead silence. I called him the next day. He said 'speaking as the chairman of Expedia it would be a real mistake, but speaking as a friend I understand why you're interested. I would be too. How can I help?' And, that's the definition of who he is!" Khosrowshahi fondly reminisced.

Diller even gave feedback to Khosrowshahi on a presentation he was preparing to show the Uber board. "There was a point in time when I had to make a presentation to the Uber board. This was like my big presentation, and I heard that the other candidates were coming in to present as well. So, this was a big day. And, I told him [Diller] - I think it was a Saturday or Sunday - that I'm coming in and making a presentation. He was like show me the presentation. It was a Power Point, so I showed him. And he actually helped me with the Power Point. He is like 'this is good, this is good, you have to add this page'. It shows you the kind of person he is. He put friendship in that case over his own business interest," Khosrowshahi said.  

After Khosrowshahi became the Uber CEO in August 2017, he has steered the company through the challenges it faced related to corporate culture, legal battles, regulatory compliance, and public perception.