Uber reported a decrease in losses and an increase in delivery services by 130%

Uber on Wednesday summed up its Q4 and full 2020 results, reporting some recovery in taxi rides and 130% growth in delivery services.

Shares of Uber (UBER), which posted strong gains of 102.4% over the past six months, fell nearly 4% on Wednesday after the close of trading amid the release of a fourth quarter and full fiscal 2020 report.

Uber posted lower than expected losses, but did not reach earnings estimates.

Uber also did not give a forecast for the next quarter and all of 2021 due to the uncertainty of macro conditions in connection with the COVID-19 pandemic.

Uber CEO Dara Khosrowshahi, commenting on the report, expressed concern that the company could face a shortage of drivers after the demand for taxi service recovers to previous levels.

Regions where the incidence of disease has dropped significantly, the company said, is seeing a rapid recovery in demand, although some business travel is expected to be lost as many office workers have moved to telework from home.

At the same time, Uber has made great strides, with new acquisitions, growing partnerships and subscription programs promising more sales and profits in 2021.

Q4 & All 2020 Uber

Uber reported a 4th quarter loss per share of $ 0.54, down 16% from last year and slightly better than analysts’ estimates of $ 0.55 loss per share.

Total revenue decreased by 21% and amounted to $ 3.2 billion, which is below the average analytical estimate of $ 3.58 billion. Uber’s quarterly revenue and profit statistics for the last 2 years are available here.

For all of 2020, Uber’s revenue fell 14% to $ 11.14 billion, but the company managed to cut losses by 20%.

Uber delivery services offset losses of taxi service

While the coronavirus pandemic has dealt a big blow to Uber’s international taxi business, it has also accelerated the growth of other Uber Eats food delivery businesses and Uber Freight cargo delivery businesses.

Uber’s management noted that the company’s delivery business more than doubled in a year to almost $ 44 billion.

In Q4, total bookings in the Delivery segment were up 130% year-on-year, while Uber Freight was up 43%. The number of taxi rides decreased by exactly half of last year’s value, but improved compared to the previous quarter.

Below is an Uber spreadsheet that compares quarterly revenue by taxi (Mobility), Delivery (Delivery) and Freight (in millions of dollars) segment.

The company also said that Uber Eats surpassed 600,000 restaurants in the fourth quarter, with the addition of Union Square Hospitality Group, Chipotle UK, Wings Etc. and many others.

Uber is increasing its non-food supply, and in the fourth quarter it partnered with retailers such as H&M in Canada and Seiyu grocery and department stores in Japan.

Membership memberships: Uber Pass, Eats Pass and Postmates Unlimited, which offer discounts and bonuses but require a monthly subscription, have increased to 5 million members and now have membership programs in 16 countries.

Restructuring Uber

“This year we took some important steps by buying companies like Cornershop and Postmates and dumping others like ATG and Jump and structurally lowering our cost base,” said Nelson Chai, Uber’s chief financial officer.

“These decisions have resulted in the company being much more focused and ultimately stronger. In the fourth quarter, we continued to improve our EBITDA, up $ 171 million qoq, and we continue to move confidently towards our 2021 profitability targets. ”

To lower its costs, Uber sold its unprofitable business units: Advanced Technologies Group (ATG), a self-driving car technology company, and its air taxi business, Elevate. Both deals were closed in January 2021. Uber also completed the sale of its Didi shares for about $ 207 million.

Earlier this month, Uber announced a deal to acquire the alcohol delivery app Drizly, which the company plans to integrate with Uber Eats, its food delivery service. Read more in Marketinfo.pro article “Uber Acquires Alcohol Delivery Leader Drizly for $ 1.1 Billion.”

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