Uber’s delivery business tops base rankings as pandemic pushes profits down

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Uber Technologies Inc. released its second quarter results Thursday.

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Uber Technologies Inc. recorded another quarterly loss of over $ 1 billion on Thursday as the COVID-19 crisis took a toll on its core ridesharing business, which was in fact overtaken by the business of food delivery from Uber.
About UBER,
+ 4,54%
reported a second-quarter loss of $ 1.78 billion, or $ 1.02 per share, on revenue of $ 2.24 billion, compared with a record loss of $ 4.72 per share on a revenue of $ 3.17 billion in the last year’s quarter. Revenue fell 29%, showing the dramatic effects the COVID-19 pandemic had on a once rapidly growing business.

The company’s results were lower Wall Street’s expectations for the bottom line, but income actually held up better than analysts expected. Analysts polled by FactSet on average expected Uber to post a loss of 81 cents per share, or nearly $ 1.4 billion, on revenue of $ 2.1 billion.
Uber’s ridesharing business has taken a huge hit. Gross bookings fell 35% to $ 10.2 billion, but bookings in the mobility segment fell more sharply to 73%, and ridesharing revenues fell 67% from last year to $ 790 million.

CEO Dara Khosrowshahi described the cycling business as “a story of 10,000 cities” during a conference call Thursday afternoon, saying cities in Asia and Europe are rebounding as the United States is in difficulty.
“Our restoration of mobility clearly depends on the public health situation in a given area,” he said.
Meanwhile, Uber Eats bookings have more than doubled from a year ago, saving the quarter as Uber prepares to significantly increase the size of that business with the acquisition of PostMates. Uber Eats generated more revenue than ridesharing for the first time, up 103% to $ 1.21 billion. The company and analysts expected increased demand in its food delivery business to help offset the drop in rides, as would-be passengers spent most of the second quarter sheltering in place but more used to ordering take out.
« At a gross annual bookings rate of around $ 30 billion at the end of the second quarter, our delivery business alone is now as large as our transportation business was when I joined the company in 2017., « Khosrowshahi said on a conference call Tuesday, while adding that PostMates generated annualized gross bookings of $ 4 billion in the quarter. “We’ve essentially built a second Uber in less than three years with an accelerated growth profile, a global footprint and a huge [total addressable market] . »
Actions d’Uber UBER,
+ 4,54%
fell more than 4% after-hours trading after the end of the regular session up 4.6% to $ 34.72. The stock is up 16% this year.
Uber released the results as its lawyers defend themselves against a lawsuit brought against the company and rival Lyft by California Attorney General Xavier Becerra and lawyers in the cities of San Francisco, Los Angeles and San Diego for non-compliance by state-law firms that would classify their drivers as employees rather than independent contractors. A preliminary injunction hearing, in which plaintiffs sought immediate reclassification of drivers before trial, was set for Thursday afternoon in San Francisco Superior Court.

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