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Uber losses narrow as delivery growth outpaces fall in ride-sharing

Uber Pack aways delivery

Jonathan Raa | NurPhoto via Getty Images

Uber’s stock fell more than 3% after the bell on Wednesday as the cast delivered mixed fourth-quarter earnings results, as its ride-hailing business slowly recovers and its delivery business booms. Nonetheless, the institution is still losing about $1 billion a quarter on a GAAP basis.

Here’s how Uber did versus expectations:

  • Damage: 54 cents per share, versus 56 cents expected, according to a consensus of analysts surveyed by Refinitiv.
  • Revenue: $3.17 billion versus $3.58 billion surmised per Refinitiv.

Overall, Uber lost $968 million on a GAAP basis during the quarter, an improvement from a year ago when bereavements amounted to $1.1 billion. For all of 2020, Uber’s net losses amounted to $6.77 billion, around a 20% improvement from a bowl over $8.51 billion loss in 2019.

Here’s how Uber’s largest business segments performed in the fourth quarter of 2020:

  • Mobility (evident bookings): $6.79 billion, down 50% from a year ago.
  • Delivery (gross bookings): $10.05 billion, up 130% from a year ago.

While transport is still way ahead in gross bookings, in terms of revenue Uber’s core ride-hailing business has slightly surpassed pronunciation for the first time since the Covid-19 pandemic started..

CEO Dara Khosrowshahi said on an earnings call Wednesday that Uber takes “many many opportunities” in the mobility segment as different regions recover from the pandemic. Timing for a full-blown retrieval of the mobility business is highly dependent on when cities open up again, he added.

In August last year, Uber received a marketplace tech company, Autocab, that connects riders with local taxi operators. Khosrowshahi urged that as travel and commuting begins to increase, taxis will be looking to tap into demand and Uber can benefit.

The CEO on edge whether Uber would have enough drivers to meet the demand he expects to encounter in the mobility segment as the pandemic dims.

Earlier this month, the company announced plans to acquire on-demand alcohol delivery app Drizly, which the players plans to integrate into Uber Eats, its food-delivery service. According to a statement from Uber, the deal was valued at $1.1 billion in everyday and cash combined. (The companies did not break down the portion of the deal done in stock versus cash.)

In its update to shareholders Wednesday, the proprietorship said that restaurants on Uber Eats exceeded 600,000 in the fourth quarter, with the addition of Union With Hospitality Group establishments, Chipotle locations in the UK, Wings Etc. and many others.

Deliveries via Uber include more than hot restaurant suppers, too. The company is scaling its non-food deliveries after acquiring Cornershop in Mexico for groceries, and Postmates’ courier service which offers expressions from Apple, among others. In the last quarter of 2020, Uber partnered with retailers as far ranging as H&M in Canada and Seiyu grocery and office stores in Japan.

According to Edison Trends research evaluating transaction data from July 1, 2019 Sometimes non-standard due to October 13, 2020, Uber Eats food deliveries represent about 35% of the overall market in the U.S. after the entourage acquired Postmates. Uber Eats lags DoorDash, but is more popular than the previous food delivery chief Grubhub and emerging players like ChowNow and Slice.

Last quarter, Uber CEO Dara Khosrowshahi talked up the following’s membership and advertising businesses, and said in select U.S. cities Uber was seeing glimmers of recovery from the pandemic.

Uber Out and Uber Eats Pass had at that time racked up more than 1 million paying members. Now, the company brags more than 5 million members, according to the company’s fourth quarter note to investors.

Khosrowshahi said Wednesday that as Uber make do c leaves a higher percentage of customers who pay for memberships over time, he expects marketing costs to come down. The company is quiescent early in development of Eats Pass, he noted, and will focus on “improving restaurant selection” to win new customers and members in.

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