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August 20th, 2020 at 9:59 am

Uber reports steep revenue decline, as delivery outpaces ride hailing.

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Uber’s revenue decline in the second quarter was the steepest since it went public in May 2019.

Uber said on Thursday that its revenue in the second quarter dropped 29 percent to $2.2 billion from a year ago and that its net loss narrowed to $1.8 billion, as the ride-hailing giant deals with the fallout from the coronavirus pandemic.

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The revenue decline was the steepest since Uber went public in May 2019, though total revenue was better than what Wall Street analysts had projected. Uber’s losses improved from $5.2 billion a year ago when it had heavy stock-based compensation costs after its initial public offering.

The pandemic’s hit to Uber’s core ride-hailing business was unmistakable. The company said the amount of money it receives from rides before paying driver wages and other fees declined 73 percent from a year earlier.

But delivery surged, with revenue from Uber Eats, its food delivery business, exceeding the core ride-hailing business for the first time. Revenue from Uber Eats totaled $1.2 billion, while rides shrank to $790 million.

To bolster its delivery business, Uber recently agreed to acquire the food delivery company Postmates for $2.65 billion.

Via NYTimes.com

 

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