Uber ramps up share buyback with $1.5 billion agreement
Updated: Jan 7
Uber Technologies, Inc. has announced the acceleration of its share repurchase programme, committing $1.5 billion to buy back shares under an agreement with Bank of America, N.A. This forms part of the ride-hailing giant’s previously disclosed $7 billion buyback plan.
Chief Financial Officer Prashanth Mahendra-Rajah highlighted the move as a strategic use of capital. “We are entering 2025 with considerable momentum and expect to continue scaling our free cash flows significantly,” he said.
The CFO added that the company’s stock is undervalued in relation to its operational strength, making the buyback an attractive proposition. The initiative is projected to reduce Uber’s market capitalisation by over one percent.
Under the agreement, Uber will make a $1.5 billion payment to the dealer on 6 January 2025. In return, the company expects an initial delivery of approximately 18.6 million shares, equating to around 80% of the total shares intended for repurchase. The final share count will be determined by Uber’s stock price on specified dates during the agreement’s term, adjusted by a discount and other conditions.
The share buyback process is expected to conclude within the first quarter of 2025, aligning with the company’s ongoing efforts to return capital to investors while sustaining growth investments.
