Uber Eats Delivery
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Share of Ride-Hailing and delivery company Uber fell more than 3% after the bell on Wednesday as the company delivered mixed fourth-quarter results.
This is how Uber fared against expectations:
- Loss: 54 cents per share, versus 56 cents expected, according to a consensus of analysts polled by Refinitiv.
- Revenue: $ 3.17 Billion vs. $ 3.58 Billion Expected per Refinitiv.
In total, Uber lost $ 968 million on a GAAP basis during the quarter, an improvement from a year ago when losses were $ 1.1 billion. For all of 2020, Uber’s net losses were $ 6.77 billion, about a 20% improvement from a staggering $ 8.51 billion loss in 2019.
Here’s how Uber’s largest business segments performed in the fourth quarter of 2020:
- Mobility (gross bookings): $ 6.79 billion, down 50% from a year ago.
- Delivery (gross bookings): $ 10.05 billion, up 130% from a year ago.
Earlier this month, the company announced its plans to acquire the on-demand alcohol delivery app, Drizly, which the company plans to integrate into Uber Eats, the food delivery service. According to a statement from Uber, the deal was valued at $ 1.1 billion in stock and cash combined. (The companies haven’t broken down the stock versus cash portion of the deal.)
In its update to shareholders Wednesday, the company said restaurants on Uber Eats had more than 600,000 in the fourth quarter, with the addition of Union Square Hospitality Group locations, Chipotle locations in the UK, Wings Etc. and many others.
Uber deliveries include more than just hot restaurant meals. The company is scaling up its non-food deliveries following the acquisition of Cornershop in Mexico for groceries, and after partnering with retailers as far as H&M in Canada and Seiyu supermarkets and department stores in Japan.
According to Edison Trends research evaluating transaction data from July 1, 2019 to October 13, 2020, Uber Eats food deliveries represent about 35% of the total US market after the company acquired Postmates. Uber Eats is lagging behind DoorDash, but is more popular than previous food delivery leader Grubhub and emerging players like ChowNow and Slice.
Last quarter, Uber CEO Dara Khosrowshahi addressed the company’s membership and advertising companies and said Uber was seeing glimpses of a recovery from the pandemic in select U.S. cities.
Uber Pass and Uber Eats Pass had more than 1 million paying members at the time. Now the company has more than 5 million members, according to the company’s note to investors in the fourth quarter.
On Wednesday, Uber executives will inform shareholders of the extent to which the pandemic is expected to limit the company’s mobility and operations around the world, and how the newer and newly acquired offerings are expected to affect Uber’s bottom line and outlook. The company will begin its conference call at 4:30 p.m. ET.
This is a story in progress … Please check back for updates.