for historical evolution, see V. Used punningly for you by 1588 ["Love's Labour's Lost," V.i.60], not long after the pronunciation shift that made the vowel a homonym of the pronoun. As a simple shorthand (without intentional word-play), it is recorded from 1862. Common in business abbreviations since 1923 (such as U-Haul, attested from 1951).
The substitution of Middle English -o- for Old English -u- before -m-, -n-, or -r- was a French scribal habit before minims to avoid misreading the letters in the old style handwriting, which jammed them together. The practice transformed some, come, monk, tongue, worm.