Travis Kalanick continues to shrink his holding in Uber Technologies.
The co-founder and former chief executive officer of the ride-hailing firm sold 6.1 million shares since Thursday for $US171 million ($250 million), according to a regulatory filing.
Kalanick, 43, has unloaded 33 million shares so far this month, collecting $US882 million ($1.3 billion). That represents about a third of the stake he held in the company after Uber’s May initial public offering. The trades came after a 180-day lockup period restricting insider and early investor sales ended on November 6. The lockup period was intended to avoid an avalanche of sales for the newly public company that could have undermined the stock price.
The end of Uber’s lockup comes at a time of growing reluctance on Wall Street to make risky bets on a host of money-losing heavyweight startups that held highly promoted public listings this year.
Uber lost $US1.2 billion in the September-quarter, and is struggling to win investor confidence.
The stock has slumped 40 per cent since the IPO. In its IPO filing, Uber had said about 76 per cent of its shares held by insiders, venture capitalists and other investors faced lockup.
Its largest shareholder is Japanese firm SoftBank, which which took a beating on its investment in office-sharing startup WeWork, and last week reported its first quarterly loss in 14 years, hurt by an $US8.9 billion hit at its giant Vision Fund.
Kalanick is still an Uber director and his remaining 3.8 per cent stake is worth $US1.7 billion. He has a net worth of $US3.4 billion, according to the Bloomberg Billionaires Index.
The entrepreneur, who was ousted as Uber’s CEO in 2017, created a fund called 10100 last year to invest in “big bets.” His latest business is CloudKitchens, which bets on so-called dark kitchens becoming a backbone of the rapidly expanding food-delivery market. The startup got $US400 million of funding from Saudi Arabia’s Public Investment Fund in January, valuing it at $US5 billion, the Wall Street Journal reported November 7. Kalanick has invested $US300 million in this latest venture.
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