By Todd Horwitz

Former Uber CEO Severs all Ties

Former Uber CEO Travis Kalanick will step down from the board, effective Dec. 31, and a spokesperson said Tuesday he has sold all of his stock in the ride-hailing company he co-founded 10 years ago. It’s unclear how much Kalanick’s total stake is worth, but the latest public filings show it’s about $2.5 billion.

In a statement Tuesday, Uber said Kalanick, 43, is leaving to “focus on his new business and philanthropic endeavors.” Kalanick is launching latest venture, CloudKitchens, which rents out space to restaurateurs for delivery-based businesses. Uber did not say who will fill Kalanick’s board seat. An Uber spokesperson said the ride-hailing company has “strong director candidates to put forward at the appropriate time.”

Later, a spokesperson for Kalanick confirmed to CNBC that he has sold his entire stake in Uber. By exiting the board and dumping his stake, Kalanick has severed his last ties from the company he co-founded. Kalanick was ousted as CEO in 2017 over concerns he had fostered an unhealthy workplace environment but remained on the board. He was at the New York Stock Exchange during the company’s IPO in May, though he was not on the dais with company executives.

Uber’s future has also been clouded by the rapid growth of competitors like DoorDash in the food delivery space, which has overtaken Uber’s Eats operation and leads the U.S. market. In its main ride-hailing business, governments around the globe are gradually layering on new rules and fees, catching up for what regulators view as years of lax oversight.

Despite efforts by the company to speed up a turn to profitability, some early investors in the company have grown weary. “There’s very little at the company to be excited about,” said Bradley Tusk, CEO of Tusk Holdings who got Uber shares when he helped the company break into the New York City market early in its history. He said he recently sold all his Uber stock.

Todd “Bubba” Horwitz