Former CEO Travis Kalanick is about to sell off Uber stock

The co-founder, former CEO of Uber ride-hailing company, Travis Kalanick, has sold this stock continuously and earned more than $ 2.5 billion since the end of the lockup period last month. . Currently, he holds only 10% stake in this company.

According to CNBC’s analysis, with the speed of selling shares from November 6 until now, Kalanick is on track to sell off its stake in Uber in the next few days. Last week, he continued to sell this stock and earned $ 383 million. His remaining stake in this company is only about 250 million USD.

This move is seen as a continuous shock for Uber in the first year as a turbulent capital listed company. This year, many initial public offerings (IPOs) of unprofitable startups failed to achieve the expected results when investors doubted their profitability. Since it went public on May 10 for $ 45, Uber has rarely traded above the IPO price.

Under US securities law, within a limited period of 180 days after a company goes public, its major shareholders are not allowed to sell shares. Early investors of Uber were allowed to sell shares on November 6, and successive sales led the stock to a record low. Currently this stock is trading at around 31 USD / share.

According to some analysts, Kalanick’s move shows he has no confidence in Uber’s current leadership. And this also raises questions about Uber’s role as a board member, according to the Financial Times. Other former Uber executives, like co-founder Garrett Camp, have also sold shares, but not as much as Kalanick.

However, some other analysts think this is a personal move of Kalanick, who lost his position as CEO of Uber in 2017 after a series of scandals. His succession of selling Uber stock may focus on capital for new startup CloudKitchens – specializing in leasing space for food vendors through delivery. In addition to a $ 300 million personal investment in CloudKitchen, Kalanick also raised $ 400 million from Saudi National Investment Fund, which is also a major shareholder of Uber, according to the Wall Street Journal.