Former Uber CEO Kalanick severs ties with ride-hailing giant

Andrew Cummings
December 24, 2019

"Very few entrepreneurs have built something as profound as Travis Kalanick did with Uber", said Dara Khosrowshahi, Uber's CEO.

The former CEO announced Tuesday that he will step down from the board of the ride-sharing company he co-founded in 2009 next week, according to the Associated Press. "At the close of the decade, and with the company now public, it seems like the right moment for me to focus on my current business and philanthropic pursuits", Kalanick said in statement obtained by the AP.

Analysts at Wedbush on Tuesday welcomed the news of Kalanick's departure, saying his remaining on the board would have been a distraction.

According to the daily financial newspaper, if Kalanick should continue to sell off at that rate, he would be completely divested of his Uber shares in a matter of days. Kalanick recently sold more than USD$2.5 billion worth of shares in the company, more than 90 per cent of his holdings. After his latest sale, Kalanick still owns more than 8.2 million shares worth about $250 million, or less than 10 percent of his original stake. The Los Angeles-based start-up buys up land and establishes kitchens for use by delivery-only restaurants, which operate via apps including Uber Eats.

Uber went public on the New York Stock Exchange in May, but Kalanick didn't join other executives on Wall Street.

When Kalanick resigned in the summer of 2017, the company had been through a bruising six months during which employees accused the former CEO of fostering a toxic work culture that encouraged sexual harassment and bullying.

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