The Uber co-founder and former chief executive Travis Kalanick is cashing in more than half a billion dollars of his stake in the ride share app, months after the company went public.
After the end of the so-called “lockup period”, a 180-day restriction on inside and early investor sales, came to an end on Wednesday, Kalanick sold more than 20m shares, according to a financial filing submitted to the US Securities and Exchange Commission on Friday.
Dara Khosrowshahi, the chief executive of Uber, has attempted to limit the damage after calling the murder of the journalist Jamal Khashoggi “a mistake” similar to a fatal accident that occurred during tests of his company’s self-driving car.
Khashoggi, a Saudi national resident in the US, and a severe critic of the Saudi regime who wrote for the Washington Post, was murdered in Istanbul last year after visiting the Saudi Arabian consulate there. His body was dismembered and disposed of.
Los Angeles international airport (LAX) has apologized for “unacceptable” wait times after a new policy banning Uber and Lyft from picking up passengers at the curb led to major traffic jams and delays.
The new system at the country’s second-busiest airport requires travelers to take a shuttle to a separate area to meet their rideshare drivers, and a bumpy rollout on Tuesday resulted in gridlock and overcrowded shuttles, as well as some passengers waiting more than an hour for their rides.
Uber’s shares fell on a humiliating first day of trading in May and have closed above the $45 price of the initial public offering (IPO) on only two days since. The ride-hailing firm reported a $5.2bn loss for the three months to the end of June. Its biggest quarterly loss was weighed down by IPO expenses, but investors worry it might never make money.
When Daniel Arrega, 19, heads to work at a mall in Innisfil, he has few options for his commute. Walking along the highway would take nearly three hours. A taxi is faster but expensive.
So he takes the town’s public transit: Uber.
“It’s great for young people, especially if you don’t have a licence,” he said after arriving at the branch of Tommy Hilfiger where he works.
Uber’s hopes of a surge in the price of its shares have fallen flat, as investors gave the taxi-hailing app’s eagerly anticipated stock market float a frosty reception by sending the shares below their launch price.