Uber co-founder on course to sell his stake in the company
Travis Kalanick is left with less than 10 per cent of his holdings after selling more than $2.5bn of stock
The co-founder and former CEO of ride-sharing app Uber Travis Kalanick is on the way to sell his entire stake in the company, according to CNBC.
The report claims that Kalanick has sold more than $2.5bn (£1.9bn, €2.2bn) in shares after the Uber stock lock-up period ended on November 6. At that point, the entrepreneur reportedly started to "systematically" sell his shares.
Last week, Kalanick sold another $383m of his stock and is now left with only $285m, which comprises around 10 per cent of his initial holdings. If the pattern holds, Kalanick will be left with no holdings at all in a few days.
The move was commended by some as a vote of no confidence in Uber's current management. It could further raise questions from investors as to whether Kalanick should stay in the company as a Uber board member, the FT reported.
FT claims that the proceeds Kalanick received from selling his part of the stock will serve to fund his new venture, Los Angeles-based City Storage Systems. The start-up is helping restaurants to find real estate to lease worldwide.
The lock-up period lasted 180 days following the company's IPO in May, when Uber managed to raise $8.1bn with Japanese financial conglomerate SoftBank Group investing $1.25bn in the company. Several days after the IPO, Uber stock began to decline rapidly.
The permission to trade Uber shares came as Uber released its third quarter earnings report in which the company unveiled steep losses. Following the publication and the end of the lock-up period, Uber shares reached a record low of $25.58.
FURTHER READING: Uber shares fall on the back of growing losses