REUTERS/Mike Blake

Travis Kalanick is resigning from Uber's board of directors as he cuts ties to the company he co-founded.

The former CEO's exit will be effective December 31, according to a statement from the company.

Kalanick has been rapidly unloading his stake in Uber stock through the end of the year, selling more than $2.5 billion worth of shares in the last two months alone.

Watch Uber trade live here.

Travis Kalanick is resigning from Uber's board of directors as he cuts numerous ties to the company he co-founded.

The former CEO's exit from the board will be effective December 31, Uber said in a Tuesday morning statement, adding that Kalanick will move on to "focus on his new business and philanthropic endeavors."

"At the close of the decade, and with the company now public, it seems like the right moment for me to focus on my current business and philanthropic pursuits," Kalanick said in the statement. "I'm proud of all that Uber has achieved, and I will continue to cheer for its future from the sidelines."

The announcement comes as Kalanick continues liquidating his position in Uber stock. His latest sale offloaded nearly 2.4 million shares on December 19, bringing his total stake down to about 5.8 million. Kalanick held 22.6 million shares at the start of November before he began rapidly scaling down his holdings.

The former chief executive has since sold more than $2.5 billion worth of Uber shares, starting a selling streak once the company's post-IPO lockup period ended. The November 6 expiration saw a massive sell-off and a record low for Uber's stock price as early investors were able to cash in shares for the first time.

Since being pushed out of the CEO role in 2017, Kalanick has moved on to helm CloudKitchens, a startup that turns commercial space into leasable kitchens for delivery-only restaurants. He spent $300 million to fund the firm, and received an additional $400 million investment from Saudi Arabia's sovereign-wealth fund in January. The kingdom's investment pegs CloudKitchen's value at $5 billion.

Kalanick's exit sets up Uber for a new phase as it looks to boost profits and recover from its disappointing initial public offering, Wedbush analysts Daniel Ives and Ygal Arounian said in a note. The stock is down roughly 33% from its offering price and is among the biggest IPO flops of the year.

"With ripping the band-aid off and Travis leaving stage left on the Board, we believe now it's about Dara & Co. taking Uber in the right direction for 2020 and beyond after a rough road so far," the analysts wrote.

Uber traded at $30.62 per share at 10:00 a.m. ET Tuesday, down about 26% year-to-date.

The firm has 27 "buy" ratings, 11 "hold" ratings, and one "sell" rating from analysts, with a consensus price target of $44.03, according to Bloomberg data.

Now read more markets coverage from Markets Insider and Business Insider:

The stock and bond markets are poised to close out their best tandem year in two decades

Boeing stock surges after CEO Dennis Muilenburg resigns from the plane manufacturer's head role

Microsoft's Cortana could overtake its frenemy Amazon Alexa to conquer the workplace, analyst says

Markets Insider

NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption