Uber has also been searching for a COO for months to help Kalanick.
The shareholders joined forces just a week after Mr Kalanick announced he was taking time out to battle personal problems.
As for what lies ahead, investors have talked about taking Uber public on the stock market. His large stake in the company keeps him on Uber's board of directors - the same board that will search for his and his team's successors.
The letter, which reportedly was sent to Kalanick while he was in Chicago, prompted hours of discussions between he and investors.
"This is a bold decision and a sign of his devotion and love for Uber", the board said. The firm's partner and Uber board member Bill Gurley had high praise for Kalanick. Theoretically the board could vote Kalanick out as CEO, but then his ruling troika could effectively dissolve the board.
Wednesday's announcement came after a shareholder revolt as the company launched a new campaign to change its image amid a number of sexual harassment claims in the workplace, among other concerns. This has included everything from unethical labor practices and sexual harassment to intellectual property theft and political associations that distanced consumers.
February 24 - A second former Uber employee blogs anonymously about "chauvinistic, racist and homophobic" attitudes she says she experienced there.
Kalanick is credited with not only helping to develop an easy-to-use technology that efficiently matches a rider with a driver but also creating a lifestyle brand that make any user feel like a globetrotting executive.
Even some of Kalanick's staunchest allies have found fault with how Uber has been run. It has always been seen as an extension of its caustic founder. "We have failed to build some of the systems that every company needs to scale successfully", Camp wrote.
Holder also recommended that COO candidates have backgrounds in diversity and inclusion, saying that would reinforce "actions resulting from recommendations. relating to tone at the top and the need to focus on diversity and inclusion at Uber". Uber and its investors are eager to right a ship that often navigated into controversial waters. The founder was already on an "indefinite leave of absence" following the death of his mother, the Times reports.style="text-align: center;"