'It would be a distraction' if he remained on Uber's board.
The news that Uber Inc. co-founder and former Chief Executive Travis Kalanick is leaving the company’s board effective Dec. 31 is a positive for the company, freeing its current management to strike their own path forward, Wedbush analyst Dan Ives said Tuesday.
“Given the pace of his insider sales and other initiatives he has on the horizon, it makes sense for Uber and Kalanick to go their separate ways at this time as it would be a distraction in our opinion if he remained in the Board room going forward,” Ives wrote. “Many investors will be glad to see this dark chapter in the rear view mirror as the overhang from the lockup has been a lingering cloud over the Uber name over the past few months.
“While we remain positive Uber needs to execute flawlessly over the next 3-4 quarters and regain much-needed Street credibility,” the analyst wrote. “With ripping the band-aid off and Travis leaving stage left on the Board, we believe now it’s about CEO Dara Khosrowshahi & Co. taking Uber in the right direction for 2020 and beyond after a rough road so far.”
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