Delivery service at Uber Eats
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Here’s how Uber does against expectations:
- Loss: 54 cents a share, versus the expected 56 cents, according to analysts’ consensus in a Refinitiv poll.
- Revenues: $ 3.17 billion versus the $ 3.58 billion projected per Refinitiv.
Inclusive, Uber It lost $ 968 million on GAAP during the quarter, an improvement over the previous year when losses were $ 1.1 billion. For the whole of 2020, Uber’s net loss was $ 6.77 billion, an improvement of nearly 20% from a staggering $ 8.51 billion loss in 2019.
Here’s how Uber’s biggest businesses perform in the fourth quarter of 2020:
- Mobility (gross reservations): $ 6.79 billion, 50% down on last year.
- Delivery (total bookings): $ 10.05 billion, up 130% from last year.
Earlier this month, the company announced its plans to acquire the on-demand alcohol delivery app Drizly, which the company plans to incorporate into its Uber Eats food delivery service. According to a statement from Uber, the deal was valued at $ 1.1 billion in both stocks and cash. (The companies did not break down the portion of the deal made in stocks for cash.)
In its update to shareholders on Wednesday, the company said restaurants in Uber Eats exceeded 600,000 in the fourth quarter, with the addition of Union Square Hospitality Group establishments, Chipotle locations in the UK, wings and more.
Uber deliveries include more than hot restaurant meals, too. The company is expanding its non-food delivery range following the acquisition of Cornershop in Mexico for grocery stores, and after partnering with large-scale retailers such as H&M in Canada and Seiyu grocery and department stores in Japan.
according to Edison Trends Research Evaluating transaction data from July 1, 2019 through October 13, 2020, Uber Eats food deliveries account for around 35% of the total market in the US after the company acquired Postmates. The Uber Eats app lags behind DoorDash, but is more popular than previous pioneer in food delivery Grubhub and Emerging players like ChowNow and Slice.
Last quarter, Uber CEO Dara Khosrowshahi spoke about the company’s membership and advertising companies, and said that Uber in select US cities were seeing a glimmer of recovery from the pandemic.
Uber Pass and Uber Eats Pass at the time had over 1 million paying members. Now, the company has more than 5 million members, according to the company’s fourth quarter note to investors.
On Wednesday, Uber executives are expected to brief shareholders on how the pandemic is expected to limit the company’s mobility and transportation business around the world, and how its new and newly acquired offerings are expected to affect Uber’s earnings and prospects. The company is scheduled to begin its conference call at 4:30 ET.
This is a developing story … Please check back for updates.