COVID-19 Has Made Food Delivery a Utility, Not a Luxury
Uber reported earnings on Thursday.
The company posted mixed results for the second quarter, the first that overlapped completely with the COVID-19 pandemic in the U.S.
For the quarter ending in June, Uber reported total gross bookings of $10.2 billion, down 35% year over year and lower than an analyst consensus of $10.5 billion. Its total GAAP revenues came in at $2.24 billion, higher than a $2.1 billion consensus. But it reported a loss of $1.02 per share versus at expected loss of 89 cents.
The company said that starting in Q2, its Rides segment will be renamed Mobility and its Eats segment dubbed Delivery. Gross Mobility bookings were down 73% to $3 billion in Q2, while Delivery bookings were up 122% to $7 billion in the same period.
“Our team continues to move at Uber speed to respond to the pandemic’s impact on our communities and on our business, leading our industry forward with new products and safety technologies, and harnessing the strong tailwinds driving exceptional growth in Delivery, with Gross Bookings growing 122 percent year-over-year excluding exited markets,” said Uber CEO Dara Khosrowshahi in a statement. “We are fortunate to have both a global footprint and such a natural hedge across our two core segments: as some people stay closer to home, more people are ordering from Uber Eats than ever before.”
Uber CFO Nelson Chai said that the company's aggressive cost-cutting measures will allow it to achieve profitability on an "adjusted EBIDTA" basis before the end of 2021.
Action Alerts PLUS senior portfolio analyst Jeff Marks weighs in on Uber in the video above.
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