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It was a story of two business units affected by the pandemic on Tuesday when the company announced its earnings in the fourth quarter.
The good news is that the delivery industry rose 130% during the quarter as millions of people who were still at home searched for deliveries for everything from avocados to aspirin. However, its ride unit, which is 47% lower, is still trying to set the pace to the recovery path like so many businesses.
“While 2020 has certainly tested our resilience, it has also dramatically accelerated our capabilities in local trade, with our delivery industry more than doubling during the year to an annual rate of $ 44 billion in December,” said Dara Khosrowshahi, CEO of Uber, in the earnings said. exemption. “With two global businesses joined by world-class technology and valuable membership programs, we’re more than ever focused on making people’s lives a little easier – helping them get where they want to go and getting everything they want. they need. “
The delivery business raised $ 10.1 billion, compared to $ 6.78 billion for hail. Shares fell nearly 4% in after-hours trading.
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Gross bookings for Uber’s delivery segment increased 18% quarter-on-quarter, 128% higher than year-on-year in Europe, the Middle East and Africa, by 142% over a year-on-year year in the US and Canada, with 130% year in Latin America and 79% higher than in the year in the Asia-Pacific region.
The delivery segment posted an adjusted loss of $ 145 million for the quarter, which improved by $ 38 million quarter-over-quarter and $ 316 million year-on-year. The loss margin improved to 1.4% of gross bookings, compared to 2.1% in the third quarter and 10.5% a year ago.
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Meanwhile, Uber’s total mobility journeys for the fourth quarter grew by 22% to 1.44 billion. Uber for Business’ gross sales grew by about 45% quarter-on-quarter, with the majority coming from non-business travel products such as delivery deals and gas products. The division’s products increased by more than 360% due to strong holiday demand for meal programs, vouchers and gift cards, which added several major customers, including Microsoft.
During his call with analysts on Tuesday, Khosrowshahi reiterated several times that he was ‘optimistic’ that the company’s joint venture would ‘start growing’ again, but expressed concern about Uber not having ‘enough drivers to meet demand’ . ‘ In 2020, Uber paid out more than $ 22 billion to drivers and delivery workers.
The former CEO of Expedia also believes that the opportunity will come as Uber expands its work with other means of transportation. Last year, Uber acquired the British Autocab, a technology company that connects riders with local taxi operators. Khosrowshahi believes taxis will once again commute commuters and travel back to previous levels, and Uber could benefit from that.
Uber’s total monthly active platform consumers grew 19% quarter-on-quarter to 93 million. On average, monthly active consumers spent more than $ 60 a month on more than five transactions on Uber’s platform.
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Uber’s net losses amounted to $ 6.77 billion, an improvement of 20% over the loss of $ 8.51 billion in 2019. The company’s adjusted loss was $ 454 million.
According to CFO Nelson Chai, the company is ‘well on track to meet our 2021 profitability targets’, citing the conclusion of the acquisition of food delivery platform Postmates on December 1, which Uber says has a strong brand and loyal customer base is. , complementary geographic areas, more than 100,000 restaurants with partners, more than $ 4 billion gross discussions on the rate, and a large and growing range of non-food delivery as a service (“DaaS”) offering . “Delivery as a service represents 18% of postal December orders, with notable partnerships including Walmart, Apple and 7-Eleven.
Memberships for Uber Pass, Eats Pass and Postmates Unlimited exceeded 5 million, with membership programs now existing in 16 countries. In addition, American Express Green, Gold, Platinum and Centurion card members have access to 12 months free Eats Pass membership.
Restaurants with active partners on Uber Eats have grown year-over-year by more than 75%, more than 600,000, with notable additions including Union Square Hospitality Group, Chicken Salad Chick, which is a manger, La Madeleine Country French Cafe , Wings Etc, Ben & Jerry’s, Cinepolis, Fresh Hospitality and Barberitos in the United States. Uber also works with Papa John’s in Canada, Chipotle in the UK and Alain Ducasse in France.
Uber has also entered into an agreement to acquire Drizly’s online alcohol market for approximately $ 1.1 billion in inventory and cash. The acquisition is expected to end within the first half of 2021, subject to regulatory approval and customary closing conditions.
Drizly could increase future gross bookings for grocery and non-food deliveries, which exceeded an annual interest rate of $ 1.5 billion in the fourth quarter. Another recent acquisition could also help in the area.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES INC. | 63.18 | +3.57 | + 5.99% |
Uber recently acquired Cornershop, which will deliver the groceries, which will help expand the delivery of groceries in Mexico. New partnerships include Morton Williams in the US, H&M and Rexall Pharmacy Group in Canada, Muffato and Raiasil in Brazil, Lawson, Francfranc and Seiyu in Japan, PX Mart in Taiwan and Sainsbury’s and McColls in the UK.
The company also took note of the sale of its ATG, Elevate and JUMP businesses, as well as a sale of about $ 207 million in shares in Didi, a Chinese company that in turn is driving.
It also entered into an agreement to sell an additional $ 293 million of its shares, which is expected to take place in the first quarter of 2021 under certain closing conditions. The total shares sold by Uber represent 8% of the total shares at 31 December.