Daily Management Review

Analysts Welcome Kalanick’s Exit From Uber


12/29/2019


Kalanick to focus on his “ghost kitchen” business which has already gathered around “$400 million” from investors.



Source: flickr.com; (CC BY-ND 2.0)
Source: flickr.com; (CC BY-ND 2.0)
Travis Kalanick is the co-founder of Uber, who is known for his aggressive approach. Reports have been circulating about his resignation from the company as he seeks to enter into a “new venture”. He has also sold all his shares of the ride-service provider and has turned towards food delivery service by creating “ghost kitchens”.
 
In 2009, Kalanick co-founded Uber and in 2017 following a series of setbacks experienced by the company, he had stepped down from the C.E.O’s post. Kalanick’s departure will sync with the departing year. According to a spokesperson, Kalanick’s nearly “$3 billion” Uber shares have been sold, while Axios had earlier informed about the “sale of final shares”.
 
Kalanick played a major role not only in turning Uber into the “largest ride-services company” in the world but he also revolutionised the global concept of transport industry. Praising the “vision and tenacity” of Kalanick, the current C.E.O of Uber, Dara Khosrowshahi said:
“Very few entrepreneurs have built something as profound as Travis Kalanick did with Uber”.
 
However, Kalanick’s brash stance was thought to be the reason behind Uber’s scandals which turned the investors against him ultimately pushing him out. As per one of Kalanick’s statement, now that Uber has become a public company, he wanted to concentrate on “his current business and philanthropic pursuits”.
 
His “ghost kitchen” plan aims to create “large industrial kitchens and lease space to restaurants”, while these kitchen would make food for delivery purpose whereby eliminating the cost of “wait staff” and real estate. The said company is called “ CloudKitchens” which has so far gathered around “$400 million in investor funding by Saudi Arabia’s Public Investment Fund” while Kalanick himself has also made investment of “several hundred million” for the same.
 
Analysts welcomed Kalanick’s exit from Uber as they consider his presence in the board as a “distraction”. In a note, analysts from Wedbush, Ygal Arounian and Daniel stated:
“Many investors will be glad to see this dark chapter in the rear view mirror”.
 
 
 
 
References:
reuters.com







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