Revenue in the quarter was $3.2 billion, a 16-percent decrease from the same period a year earlier. Although Uber’s food delivery venture balanced the knock they have taken, the company has incurred a massive loss in the final three months of 2020. The decline was from the shared-riding during the pandemic. The loss of $1.1 billion marginally narrowed to $ 968 million and due recognition to given to the food delivery operations. Revenue in the quarter was $3.2 billion, a 16-percent decrease from the same period a year earlier.
“While 2020 certainly tested our resilience, it also dramatically accelerated our capabilities in local commerce,” Uber chief executive Dara Khosrowshahi said. Uber said its “mobility” segment, which includes ride-hailing, was down 52 percent from a year earlier, while its delivery operations — including its Uber Eats meal service — saw a revenue jump of 224 percent.
This has the potential to be a “banner year” for Uber, as vaccination programs get people back to summoning rides and the company expands its delivery of alcohol and groceries as well as take-away restaurant meals, according to eMarketer analyst Eric Haggstrom. Uber early this month announced it was acquiring Drizly, a startup specializing in delivery of beer, wine and spirits, for some $1.1 billion and would integrate it with Uber Eats.
A startup dedicated to deliver beer, wine and spirits is underway, with Uber announcing that it was buying Drizly for an amount of somewhere near $ 1.1 billion and this would be combines with Under Eats. Drizly has operations in about 1,400 US municipalities and one Canadian Province. The two firms have stated that Drizly would become a subsidiary of Uber and its services would be available via Uber Eats as well as the independent Drizly app. Through its purchase of Coronership, Uber introduced a grocery delivery service last year.
“Uber’s continued expansion into alcohol and grocery delivery will help capture even more consumer spending in two large, rapidly digitizing markets,” Haggstrom said. Khosrowshahi is hopeful the new customers got through its food delivery operations would also use the ride-share facility once the pandemic lifestyle restrictions reduce. “We have proven in big markets in Brazil and Australia that as these markets open up the mobility business comes back, and it will start growing again,” Khosrowshahi said on an earnings call. “There is no doubt in my mind that in 2022 and 2023 our mobility business will grow at substantial, double digit rates.”
Khosrowshahi has lobbied for Uber drivers to be made part of the Covid-19 vaccination effort, being given inoculations and then providing rides in the broader effort. Daniel Ives at Wedbush Securities said the results represent “another major step in the right direction” and suggest an improving picture as Uber emerges from the pandemic. “The company is clearly seeing a rebound in ridesharing metrics and coupled with a leaner expense structure is setting a stage for snapback in growth and profitability,” Ives said in a research note.
Uber has been caving in during the pandemic. It is reported that Joby Aviation a flying Taxi Operation bought out Uber’s San Francisco based air transport operation in a deal that was concluded last month. Joby acquired Uber expertise and software, and the ability to offer its all-electric, vertical take-off and landing passenger aircraft on the ride-hailing giant’s app. Although the sum of the deal was disclosed, it included an investment of $75 million by Uber into the Santa Cruz based Joby who has indicated that they are hoping to have the flying taxis operating as early as 2023.
Uber in January also closed the sale of its autonomous car division to Amazon and Hyundai-backed Aurora, in a deal that gives Uber a 26 percent stake in the startup developing self-driving technology. As part of the deal, Uber and Aurora teams will merge. As per the company’s expectations, the self-driving technology will at the start be used for long-haul trucking. Whilst Uber riders are matched to that of Uber drivers in the ridesharing app, Uber Freight which matches its truckers and shippers witnessed $313 million which is a 43 percent rise in revenue. Uber shares saw a slide of more than 4 percent in after-hours trade following the results.
