Travis Kalanick To Resign From Uber Later This Month After Dumping Billions In Stock

Dec 24, 2019
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Uber's co-founder and former chief executive officer Mr. Travis Kalanick has been busy unloading the company's stock. Ever since Uber's post-IPO stock lockup expired last month, the executive has dumped more than 90% of his holdings in the company. Now, Mr. Kalanick's journey with Uber has come to an end, as the company has formally announced that he is exiting its board of directors. Take a look below for more details.

Travis Kalanick Departs From Uber After Tumultuous Role As Company's Former Chief Executive

In a press release, Uber Technologies (NYSE:UBER) has confirmed today that its former chief executive Travis Kalanick will part ways with the company by resigning from its board of directors on the 31st of this month. Mr. Kalanick served as Uber's top boss until 2017 when he was forced to step down due to investor pressure. The move came at a time when sexual harassment allegations started to surface at Uber, and investigations in the company's work culture led to 20 employees being let go.

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After stepping down as C.E.O., Mr. Kalanick continued to serve on Uber's board of directors. He also focused his efforts on a new venture dealing with providing kitchen space to restaurants at the same time. His continuous offloading of Uber (NYSE:UBER) stock over the past couple of weeks is thought of as him freeing up capital to fund this new venture.

Travis Kalanick's new venture is called CloudKitchens.

Mr. Kalanick's first entrepreneurial venture was a peer-to-peer file exchange service called Scur. The service was forced to file for bankruptcy in 2000 after being sued by content creators and owners. According to the press release issued by Uber, the soon-to-be-former board member will focus on his new business and philanthropic ventures following his departure. Uber has not been performing well on the stock market as the company faces regulatory scrutiny in multiple countries.

It's appealing a blanket ban in London, facing another ban in using car-hire companies to provide users with rides in Germany and undergoing investigations in New Jersey for alleged tax evasion. At the time of writing, Uber (NYSE:UBER) is trading at $30.61/share, up by 0.94% over yesterday's closing. The stock hit its 52-week low closing price of $25.99 in November, and the company won a small victory in New York Supreme Court yesterday when Judge Lyle Frank struck down a rule limiting the time Uber drivers could spend driving on street without carrying any passengers.

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