Kalanick took an indefinite leave of absence last week after his mother died - and after a scathing report decried a toxic culture at the company that permits sexual harassment and other bad behavior. The investors reportedly said it wasn't enough for him to take a temporary leave of absence and that he needed to go.
"I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight," Kalanick said in a statement to the New York Times.
Two weeks ago, Uber fired more than 20 employees after an investigation uncovered a toxic work environment.
Kalanick will remain on the board of directors, the New York Times reported. He helped found the ride-sharing service app in 2009.