Uber News: Why Kalanick Resigned From Board Of Directors

Uber co-founder Travis Kalanick, who recently sold off more than $2.5 billion in company stock, has resigned from Uber’s board of directors effective Dec. 31.

“Uber has been a part of my life for the past 10 years. At the close of the decade, and with the company now public, it seems like the right moment for me to focus on my current business and philanthropic pursuits,” Kalanick said in a prepared statement.

“I’m proud of all that Uber has achieved, and I will continue to cheer for its future from the sidelines. I want to thank the board, Dara [Khosrowshahi] and the entire Uber team for everything they have done to further the Uber mission.”

No replacement immediately was named.

Khosrowshahi, who replaced Kalanick as CEO in June 2017, said he was grateful for Kalanick’s vision and tenacity.

Kalanick’s tenure as CEO was roiled by scandals, including something called “Project Greyball,” an effort to deceive authorities in areas where Uber operations had been restricted or banned, and charges of sexual harassment.

Kalanick, 43, sold off 90% of his Uber (UBER) shares at the end of the lockup period and was expected to be completely divested within days. The company’s initial public offering in May saw share prices of $45, pushing the company’s value to $82 billion to make it the world’s most valuable startup. Since then, however, share prices have fallen to the $30 range, and as low as $25, reducing the market cap to $52 billion. Shares were up 1.18% in late-morning trading.

Kalanick’s new startup is CloudKitchens, which rents out “ghost kitchens” for delivery-only restaurants run by chefs and others who don’t want to lay out the capital to open a full-fledged eatery. Kalanick has been buying up properties in the U.S., India, China, the U.K. and elsewhere near heavily populated areas for the venture. The concept grew out of the UberEats food delivery service.

He also started a venture capital fund, 10100 Fund, which he described as home to his “passions, investments, ideas and big bets.” The fund will oversee Kalanick’s for-profit investments as well as his nonprofit work, focused on job creation with investment in “real estate, ecommerce, and emerging innovation in China and India,” along with education and the future of cities.