Christmas Eve information dump: Former Uber CEO Travis Kalanick, the person behind the ride-hailing firm’s meteoric world rise regardless of its extremely speculative enterprise mannequin that’s by no means turned a revenue, is leaving its board of administrators, Uber stated in an announcement on Tuesday. He’s additionally dumped all of his remaining inventory within the firm.
Kalanick’s resignation from the board will go into impact on Dec. 31, 2019. In an announcement, present CEO Dara Khosrowshahi—who was employed largely to clear up Kalanick’s seemingly never-ending collection of messes and scandals—wrote, “Very few entrepreneurs have built something as profound as Travis Kalanick did with Uber. I’m enormously grateful for Travis’ vision and tenacity while building Uber, and for his expertise as a board member.”
“Everyone at Uber wishes him all the best,” Khosrowshahi added.
Per CNBC, Uber’s newest public filings pegged his stake within the firm was round $2.5 billion, although he’s been dumping inventory since a lockup interval expired in November. Kalanick will flip to “new business and philanthropic endeavors,” in accordance to the Uber assertion.
Kalanick’s severing of his ultimate ties with Uber comes as the corporate he constructed is going through existential threats from regulators, rivals, and the continued incapability of its personal enterprise mannequin to cease burning via billions of funding. The firm’s 2019 preliminary public providing was the worst-performing in U.S. inventory market historical past, whereas shares have continued to slide downwards.
Under Kalanick’s tenure, Uber endured quite a few scandals, together with labor disputes with the fleets of poorly-paid contractors that energy Uber’s core taxi and supply companies, systemic mishandling of reviews of sexual harassment within the office and assaults on clients, and flagrant disregard for native legal guidelines and rules. Kalanick himself was filmed screaming at a bankrupt Uber driver in early 2017, leading to a substantial amount of embarrassment.
Even after he was compelled out as CEO in June 2017, Kalanick reportedly remained a serious headache for the corporate’s administration and board for months, with widespread notion that he was jockeying for a return to energy. The board finally voted to strip him of most of his remaining management; Kalanick has since turn out to be an funding fund goon and “cloud kitchens” man, and wasn’t even invited to attend the IPO bell ringing earlier this 12 months.