Uber set to join the S&P 500 index

The latest indication that Uber, the ride-hailing and delivery startup, is turning its business around after struggling during much of the pandemic, is that its stock is scheduled to enter the S&P 500 index later this month.

S&P Dow Jones Indices announced late Friday that the San Francisco-based startup will be included in the benchmark index before regular trading on December 18 begins.

A stock can benefit greatly from inclusion in the S&P 500 since numerous funds monitor the index, which is the foundation of many 401(k) accounts. These funds are meant to replicate the holdings of the S&P 500. As a result, the price of the index's stocks rises due to increased demand.

Monday saw a 2% increase in Uber Technologies Inc. shares, closing at $58.63. That is not too far off their February 2021 record high of $63.18 per share. This year, the stock has increased by over twice thus far.

Uber didn't meet the requirements to be listed in the S&P 500 until the third quarter, when it achieved $1.05 billion in net income over the previous 12 months.