Uber co-founder Travis Kalanick offloads $550m in shares
Uber’s ousted co-founder and chief executive Travis Kalanick has sold nearly 21 per cent of his stake in the ride-hailing app since restrictions on trading expired last week.
Read more: Uber shares hit record low after IPO lock-up expiry
In a series of transactions, Kalanick sold more than 20m shares worth roughly $547m (£425m), according to a company filing.
Uber’s share price hit a record low on Wednesday last week as shareholders prepared for the end of the so-called lockup period, which prevented early investors from selling shares for six months after the company’s initial public offering (IPO).
Kalanick’s sell-off drove Uber’s share price down as much as two per cent in early trading today. However, the former boss still owns roughly 75.4m shares worth more than $2bn.
Uber has been battling to restore confidence after its disappointing IPO earlier this year, and last week posted a third-quarter loss of more than $1bn.
Analysts and investors have raised concerns about Uber’s ability to stem its hefty losses, but chief executive Dara Khosrowshahi has said he hopes to make the tech giant profitable by 2021.
Kalanick, who co-founded Uber with Garrett Camp in 2009, was forced to step down in 2017 amid a series of scandals and lawsuits. Both executives still serve on the company’s board.
Kalanick has since turned his attention to Cloud Kitchens, a Los Angeles-based food delivery company.
Read more: Uber hopes to turn a profit in 2021 as ride-hailing firm makes heavy third-quarter loss
The startup has secured $400m of funding from Saudi Arabia’s Public Investment Fund, taking its valuation to roughly $5bn, the Wall Street Journal reported last week.
Main image credit: Getty