Uber, the popular ride-hailing and delivery company, is set to join the S&P 500 index later this month, signaling a significant turnaround for the company after a challenging period during the pandemic. In a late Friday announcement, S&P Dow Jones Indices confirmed that Uber would be added to the benchmark index before regular trading opens on December 18th.

Inclusion in the S&P 500 is highly coveted by companies as it often leads to increased demand for their stocks. Many funds are designed to mirror the holdings of the index, making it a crucial component of 401(k) accounts. Consequently, being part of the index can drive up the price of a stock. Upon the news, Uber's shares experienced a notable boost, with a 5.2% increase in midday trading on Monday, reaching $60.31 per share. This surge brings them close to their all-time high of $63.18 per share, achieved in February 2021. Overall, Uber's stock has more than doubled this year.

This remarkable rally in Uber's shares reflects a significant turnaround compared to just a few months ago when the stock struggled at $20.46 per share in the summer of 2022. As the pandemic forced government lockdowns and limited movement, Uber's ride-hailing business suffered a severe blow. The shift towards remote work further reduced the need for people to rely on Uber for transportation. However, the company swiftly adapted to the changing circumstances by bolstering its fledgling food-delivery division, which eventually became a major source of revenue.

While Uber's ride-hailing service faced challenging times, there are signs of a gradual recovery. The company now handles more rides than it did in 2019, instilling hope that it may achieve its long-term goal of consistent profitability. The addition of Uber to the S&P 500 index reinforces this positive trajectory, as it opens up opportunities for increased investment and wider recognition within the financial industry.

Uber's successful resurgence is emblematic of the resilience and adaptability displayed by many companies during the pandemic. By diversifying its services and capitalizing on emerging trends, Uber has managed to navigate through uncertain times and position itself for future growth. As the company prepares to join the prestigious S&P 500 index, investors and stakeholders will be closely watching the continued trajectory of Uber's recovery and its potential to deliver sustainable profitability in the coming years.