Uber Eats delivery
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Shares of delivery and location delivery company Uber fell more than 3% after Wednesday’s bell, as the company achieved mixed results in fourth-quarter results.
Uber explains below expectations:
- Loss: 54 cents per share, compared to the expected 56 cents, according to a consensus of analysts surveyed by Refinitiv.
- Income: $ 3,170 million versus $ 3.58 million projected by Refinitiv.
Overall, Uber lost $ 968 million based on GAAP during the quarter, an improvement from a year ago when losses amounted to $ 1.1 billion. For all of 2020, Uber’s net losses amounted to $ 6.777 billion, an improvement of approximately 20% over a staggering loss of $ 8.51 million in 2019.
The following explains the performance of Uber’s largest business segments during the fourth quarter of 2020:
- Mobility (gross bookings): $ 6.79 billion, 50% less than a year ago.
- Delivery (gross bookings): $ 10.05 million, 130% more than a year ago.
Earlier this month, the company announced plans to acquire the on-demand alcohol supply application Drizly, which the company plans to integrate into Uber Eats, its food supply service. According to an Uber statement, the deal was valued at $ 1.1 billion in combined stock and cash. (Companies did not break down the share of the agreement into shares versus cash.)
In its update to shareholders on Wednesday, the company said Uber Eats restaurants topped 600,000 in the fourth quarter, with the incorporation of Union Square Hospitality Group outlets, Chipotle locations in the UK, Wings Etc. and many others.
Deliveries via Uber also include more than hot meals in the restaurant. The company is scaling its non-food deliveries after acquiring Cornershop in Mexico for groceries and after partnering with such diverse retailers 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 account for approximately 35% of the global market in the U.S. after the company acquired Postmates. Uber Eats stays with DoorDash, but is more popular than former food delivery leader Grubhub and emerging players like ChowNow and Slice.
Last quarter, Uber CEO Dara Khosrowshahi spoke about the company’s membership and advertising businesses and said that in certain U.S. cities Uber was seeing pandemic recovery lightning.
At the time, Uber Pass and Uber Eats Pass had amassed more than a 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 update shareholders on how much the pandemic is expected to restrict the company’s mobility and business around the world, and how its latest and most recent offerings are expected to impact in Uber’s results and prospects. The company plans to begin its conference call at 4:30 p.m.
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