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Uber Co-Founder Kalanick To Leave Uber Completely To Focus On Industrial Kitchens Venture


12/26/2019


Uber Co-Founder Kalanick To Leave Uber Completely To Focus On Industrial Kitchens Venture
The co-founder of Uber, Travis Kalanick, has ultimately decided to quit form the board of the ride hailing company. It was also announced that he would be selling all of his shares in the company. Kalanick will now focus his attention to setting up a new venture that would create “ghost kitchens” for food delivery services.
 
Kalanick co-founded Uber in 2009 and was at one time the only controller of the fats expanding company. He resigned as the chief executive of the company in June 2017 following serious pressure from investors and a number of scandals and business failures.
 
Uber said on Tuesday that Kalanick will relinquish his position in the company’s board of directors by the end of the year.
 
About $3 billion worth of shares in Uber has been sold by Kalanick, his entire stocks of the company, said a spokeswoman of the company on Tuesday and added that the company will file the final regulatory form on Thursday.
 
The sale of final shares was earlier reported by Axios.
 
There were no comments made by the spokeswoman about the use of the proceeds from the sale of share by Kalanick.
 
Uber was transformed from a small startup to largest ride hailing company of the world by Kalanick’s aggressive leadership style. Kalanick helped Uber to revolutionize the global taxi industry and posed new challenges for transportation regulations in many countries of the world.
 
“Very few entrepreneurs have built something as profound as Travis Kalanick did with Uber,” Uber Chief Executive Dara Khosrowshahi said in a statement. Kalanick’s “vision and tenacity” was credited in the statement.
 
However analysts also held the brand attitude of Kalanick for a slew of scandals and complaints related to how he led the company which culminated in a concerted push by the shareholders to oust him.
 
Kalanick wanted to focus on his current business and philanthropic pursuits now that Uber had turned into a public company, the Uber co-founder said in a statement.
 
The current venture that Kalanick is working on is the creation of large industrial kitchens and in leasing such space to restaurants. Such kitchens, known as “ghost kitchens”, would be engaged in preparing meals for food delivery companies minus the costs related to wait staff and for rent or costs of real estate of the places where diners are served.
 
According to Crunchbase, $400 million in investor funding by Saudi Arabia’s Public Investment Fund, has so far already been raised by the company which is known as “CloudKitchens”. Kalanick’s spokeswoman said that he himself has also invested “several hundred million” in the venture. No further details were provided about the money involved in the venture.
 
On the other hand, Uber shares have bit performed well since it went public in May as its share price is currently down by 30 per cent compared to the price at the time of the IPO. Investors have reportedly become skeptical about the business model of the ride hailing company and the potential of the company to make profits soon. 
 
(Source:www.firstpost.com)