Slack spikes 8% after Uber decides to use the chat app for its 38,000 employees

uber ceo dara khosrowshahi

Slack just landed another big exclusive account.

The popular workplace-chat app surged as much as 8% in early trading Friday to $29.70 per share after Uber decided that it would only use Slack across its entire workforce of 38,000 employees, Business Insider's Paayal Zaveri reported.

It's a big win for Slack, which has had heavy competition from other workplace platforms such as Microsoft Teams. Uber and the workplace-chat app also have a history - in 2016, the ride-hailing company decided to use a platform called HipChat, saying that Slack wasn't able to keep up with its needs at the time.

But Slack has made strides since, and Uber has been a customer of the platform since 2019, Zaveri reported, citing a source familiar with the matter. The Uber news comes about a week after IBM also said it would roll out Slack globally to its 350,000 employees. IBM had long been Slack's largest account, and the two companies had a partnership that began in 2016.

Winning large accounts such as Uber and IBM bodes well for Slack going forward, Wall Street analysts covering the company told Business Insider. The company has a consensus price target of $26.58 and 11 "buy" ratings, eight "hold" ratings, and three "sell" ratings from Wall Street analysts, according to Bloomberg data.

Shares of Uber fell as much as 2% in intraday trading Friday. Slack has gained 22% year-to-date through Thursday's close.


Axel Springer, Insider Inc.'s parent company, is an investor in Uber.Exclusive FREE Report: 30 Big Tech Predictions for 2020 by Business Insider Intelligence

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