Uber co-founder now more interested in “ghost kitchens”

on Dec 26, 2019
Updated: Mar 11, 2020
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  • Uber co-founder announces resignation to focus on personal business of "Ghost Kitchens".
  • Co-founder, Travis Kalanick, to sell his $3 billion stake in the ride-hailing company.
  • Uber has lost around 30% in the stock market since its initial public offering.
  • Kalanick's Cloud Kitchens business has received $400 million investment from Saudi Arabia's Public Investment Fund.

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Uber,
the popular ride services company, has revolutionized the transport industry
but is now failing to keep the interest of its co-founder, Travis Kalanick.
According to sources, Kalanick has now completely severed ties with the
company, given in his resignation to the Board of Directors, and is in the
process of selling all his stake.

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His
new business interest is “ghost kitchens” as he aims to venture into
the food delivery business. The results of Kalanick’s new project are yet to be
seen and it will only be revealed in time whether the venture will be as ground
breaking as Uber.

Kalanick Was Forced To
Step Down As CEO In 2017

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As
a founding member of Uber in 2009, Kalanick had close to full control of the
company. However, after some performance hindrances, he was forced to step down
as Chief Executive in 2017. The next five days are Kalanick’s last few on the
BOD of the company, as he will be completely removed by the end of the year.

Reported
by a spokeswoman, the billionaire has disposed of his $3 billion stake in the
company, finalizing his separation from the transport giant. However, she did
not clarify what Kalanick planned to do with the cash he has gotten from the
sale.

The
move is surprising and Uber’s future may be affected as it was the exceptional
vision of co-founder Kalanick that led Uber to groundbreaking success in the
transport industry, not only in the US but worldwide. However, there are other
views regarding this as Uber
is already a loss-making company
with shares that have deteriorated by 30%
since its IPO.

Uber’s
current CEO Dara Khosrowshahi was all praise for the company’s ex-CEO and
co-founder, Travis Kalanick, stating that very few entrepreneurs had ever
created anything as successful and revolutionary as Uber.

Although
Kalanick’s ingenious entrepreneurial drive was never to blame, his harshness
and brashness did create quite the scandal. This alienated him from
shareholders and resulted in him being asked to step down as the company’s
leader.

The
former CEO was alleged to turn a blind eye to or foster a very toxic and
harmful work culture in Uber. There were reports of sexual harassment and
bullying, although Kalanick did say that he had no tolerance for such behavior
and was determined to fire anyone who indulged in such activities.

Kalanick Says It Is Time
For Him To Focus On His Personal Business

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Kalanick has made it clear that since Uber is now public it is now time for him to focus more on his personal business, Cloud Kitchens. The startup focuses on building large industrial kitchens and providing space to restaurants for food delivery service. Hence, eliminating the need for wait staff and a diner system.

Reportedly,
Kalanick has invested several hundred million in the business and Saudi
Arabia’s Public Investment Fund has also provided $400 million driven from
investors.

Uber’s shares have
not been affected by the news of Kalanick’s resignation and closed at $30.44 on
Tuesday. However, what
the future holds for both Uber
and Cloud Kitchens in 2020 is yet to be
seen.

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