Moving up a gear, Uber joins the S&P 500
Overtaking Sealed Air Corp, Uber has parked itself in the S&P 500 index, sending its share price soaring in the process, which is close to an all-time high as the company joins the portfolio of many index funds.
Dara Khosrowshahi has managed to stabilize Uber’s accounts, keeping it in the black for the last four quarters, a requirement for inclusion in the S&P 500. It managed the other, an adjusted market capitalization above $14.5 billion, some time ago: Uber’s valuation is $118 billion; the index’s average is around $31 billion.
What has Dara Khosrowshahi’s management meant for the company? First of all, the abandonment of the “let her rip” strategy of his predecessor, Travis Kalanick, founder of the company and a bulldozer able to sweep aside the resistance that the arrival of his company generated among cab drivers, city councils and regulators, using unorthodox methods until Uber become a part of the urban landscape around the world.
Khosrowshahi’s merit lies in having calmed the waters of those the initial struggles, in consolidating the core business of passenger transportation, imposing order on a chaotic management structure by cutting the number of offices and staff, and building up Uber Eats, which currently makes a strong contribution to the company’s accounts. Basically, Uber Eats allowed the company to survive…
