Nikesh Arora, CEO of Palo Alto Networks, appears on CNBC’s “Squawk Box” at the WEF Annual Meeting in Davos, Switzerland on Jan. 16th, 2024.
Adam Galici | CNBC
Nikesh Arora, the CEO of Palo Alto Networks, is joining Uber‘s board of directors, the company announced in a regulatory filing Wednesday.
It comes amid a broader executive shakeup this week at the ride-hailing company, which saw head of delivery Pierre-Dimitri Gore-Coty depart after 13 years. Andrew Macdonald, head of mobility, was promoted to president and chief operating officer, Uber’s first since 2019.
“I’m honored to join Uber’s Board at such an exciting time, as the company plays a central role in commercializing autonomous mobility around the world,” Arora said in a statement. “Uber has already fundamentally transformed how people and goods move through cities, and I look forward to contributing to the company’s continued success.”
Arora has been chairman and CEO of Palo Alto since 2018. Prior to that, he was president and chief operating officer of Softbank and also held positions at Google and T-Mobile. Arora has previously served the boards of Softbank, Sprint, Colgate-Palmolive and others, and currently sits on the board of a Swiss luxury-goods holding company.
“Nikesh is one of the technology industry’s great executives: a strategic and disciplined operator, and a fierce competitor,” Uber CEO Dara Khosrowshahi said in a statement. “We’re thrilled to welcome him to the board and look forward to his contributions as we continue to advance our long-term strategy.”
The shakeup comes as Uber faces increased competition, particularly in the robotaxi space.
Tesla is planning its long-awaited robotaxi launch in Austin on June 12. Alphabet-owned Waymo, which partners with Uber in Austin and Atlanta, recently hit 10 million paid driverless rides, with weekly rides jumping 150% in less than a year.
Food delivery competitor DoorDash has been aggressively expanding its reach, acquiring delivery firm Deliveroo and booking platform SevenRooms in the past month.
The management changes, including the elevation of Macdonald, who will oversee delivery, mobility and autonomy, could allow Khosrowshahi to take on a more strategic role.
Khosrowshahi joined Uber in 2017, bringing it public in 2019 and to its first operating profit in 2021. Since then he has expanded the Eats and delivery business, smoothed over regulatory issues, and sold Uber’s in-house AV unit in favor of partnerships with companies like Waymo and the UK’s Wayve.
“I recognize the change might prompt some questions about my future, so I’ll be clear: I have no plans to go anywhere anytime soon — other than fly around the globe trying to keep up with our ever-growing footprint,” Khosrowshahi told employees in an internal memo announcing the COO changes.
For his board service, Arora will receive a $60,000 annual cash retainer and $300,000 of restricted stock units a year, according to the filing.
