Uber co-founder Travis Kalanick is apparently in a hurry to unload his share in the ride-hailing company. He sold another USD 166 million worth of stock between December 11 and 13. With this, the total worth of stock unloaded by him this month has reached up to USD 350 million. This has brought his proceedings to more than USD 2.1 billion ever since Uber’s lockup period ended on November 6. The 43-year old Uber co-founder’s remaining stake in the company is down to a fifth of an estimated USD 3 billion. This is down by 75 percent from what it was before the lockup. The shares have been sold in various transactions at prices ranging from USD 27.87 to USD 28.54.
Kalanick is selling his shares at a time when Uber is facing multipronged challenges. Last month, regulators in the United Kingdom stripped Uber of its license leaving 45,000 cabdrivers associated with it in Limbo. This is the second time since 2017 when Uber’s license has been revoked. However, the move has been challenged by Uber in a court. It can lose an annual revenue of approximately USD 480 million if the court upholds the decision of regulators. The move comes even as the ride-hailing company is struggling to make some profit after 3,000 cases of sexual assault were reported last year. On top of that, California has approved a law to provide social protections to temporary and contract employees. It will have negative implications on the company as it will have to provide minimum wage compensation to drivers and this will drive up costs.
Kalanick is not an isolated case when it comes to selling shares. Co-founder Garrett Camp has also reduced his stake, though on a much lesser scale when compared to Kalanick. Camp has unloaded over USD 30 million of his shares ever since the lockup period expired. These developments have increased the concern of Uber’s investors which is facing a cash burn problem. The company’s stock is also down 31.46 percent year-to-date.