Due to the impact of the pandemic and the emphasis on social distancing, both riders and drivers of Uber Technologies have been cautious about using its ride-sharing services. Despite a slight recovery from the lowest point in April, Uber’s ride bookings are still down by 75% compared to the previous year, accounting for a significant loss in revenue. The company reported net losses of about $1.8 billion from April to June, mainly driven by losses in the United States and Canada.
On the other hand, Uber’s food delivery service, Uber Eats, has experienced significant growth during this period. With reduced travel and in-person dining, more people are opting for take-out options, leading to a substantial increase in delivery orders on Uber Eats. The company’s recent acquisition of Postmates has also contributed to this growth by expanding its customer base.
By leveraging the profits from Uber Eats and implementing cost-cutting measures, Uber has been able to mitigate its overall losses. Despite challenges in the ride-sharing sector, the company reported an adjusted loss of $837 million in the second quarter. Uber is optimistic that with the continued success of Uber Eats and the potential resurgence of ride-sharing as the pandemic subsides in other regions, it can achieve profitability by 2021. Following the release of these updates, Uber’s stock saw a slight decrease of 2.9% to $33.72 per share.
