The ride-hailing company Uber just hit a $90 billion market value for the first time ever, trailing a meteoric rise in the value of publicly-traded tech companies on US stock exchanges. Uber now trades at over $51 a share, compared to a price of $42 when it began trading on the New York Stock Exchange last year.

After its IPO, Uber’s stock didn’t fare so well, falling to as low as $29 as the company posted billions of dollars in losses. Now, it’s risen to a record level, giving Uber a current market value of about $90.4 billion.

Notably, Uber’s ride-hailing business has been significantly affected by the coronavirus pandemic whereas the company’s food delivery business has boomed. In the third quarter of this year, the company posted a 125% year-over-year growth of food delivery revenue to $1.45 billion whereas its ride-hailing revenue fell 53% over the year to $1.37 billion.

Uber continues to post sizeable losses, $1.1 billion in Q3, albeit lesser than it used to. 

Uber could be riding to higher levels depending on market sentiment as it continues to shed money-losing businesses. Recently, the company was reported to be in talks to sell its cash-burning self-driving business to an Amazon-backed competitor, Aurora Innovation.

Particularly, Uber is targeting a milestone market value of $120 billion, wherein it’s set a lucrative $100 million compensation package for its CEO Dara Khosrowshahi if its market value crosses $120 billion and stays so for a consecutive 90 days. With its recent rise, the company may just be heading towards that.

Photo: Uber CEO Dara Khosrowshahi|by Hubert Burda Media is licensed under CC BY-NC-SA 2.0

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