Uber earnings Q4 2020

The share and delivery company Uber’s share fell more than 3% on Wednesday after the company delivered mixed earnings for the fourth quarter.

Uber did so against expectations:

• Loss: 54 cents per share, compared to 56 cents, according to a consensus of analysts surveyed by Refinitiv.
• Income: $ 3.17 billion versus $ 3.58 billion per Refinitiv.

Overall, Uber lost $ 968 million on a GAAP basis during the quarter, up from $ 1.1 billion a year ago. For the whole of 2020, Uber’s net losses amounted to $ 6.77 billion, about a 20% improvement over a staggering loss of $ 8.51 billion in 2019.

Uber’s largest business segments outperformed in the fourth quarter of 2020:

• Mobility (gross bookings): $ 6.79 billion, down 50% from a year ago.
• Delivery (gross bookings): $ 10.05 billion, 130% higher than a year ago.

Earlier this month, the company announced its plans to acquire the on-demand liquor delivery app Drizly, which the company plans to integrate into Uber Eats, its food delivery service. According to a statement from Uber, the deal is valued at $ 1.1 billion in shares and cash combined. (The companies did not break up the portion of the transaction in stock versus cash.)

In its update to shareholders on Wednesday, the company said restaurants at Uber Eats exceeded 600,000 in the fourth quarter, with the addition of Unions Square Hospitality Group establishments, Chipotle locations in the UK, Wings Etc. and many others.

Deliveries via Uber include more than hot restaurant meals. The company scaled up its non-food deliveries following the acquisition of Cornershop in Mexico for groceries, and a partnership with retailers to H&M in Canada and Seiyu Grocery and Department Stores in Japan.

According to research by Edison Trends, which assesses transaction data from July 1, 2019 to October 13, 2020, Uber Eats food deliveries represent approximately 35% of the total US market after the company acquired Postmates. Uber Eats lags behind DoorDash, but is more popular than the previous leader in food delivery, Grubhub, and emerging players like ChowNow and Slice.

Last quarter, Uber CEO Dara Khosrowshahi discussed the company’s membership and advertising businesses, saying that Uber was seeing glitter from the pandemic in select US cities.

Uber Pass and Uber Eats Pass picked up more than 1 million paying members at that time. The company now has more than 5 million members, according to the company’s fourth quarter to investors.

Uber management on Wednesday is expected to keep shareholders informed of the expectation that the pandemic will restrict the company’s mobility and combat operations around the world, and how the newer and newly sold offering is expected to have an impact on Uber’s end. and prospects. The company plans to begin its conference call at 4:30 p.m. ET.

This is an evolving story … Please check for updates.