Uber lost $ 6.8 billion in 2020

Uber lost $ 6.8 billion in 2020

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The annual loss, which Uber reported on Wednesday along with its fourth-quarter results, represents a significant drop from the $ 8.5 billion it lost in 2019. called “profitable growth.”

The company reported $ 968 million in losses for the last three months of 2020, including $ 236 million in inventory-based compensation costs, compared to $ 1.1 billion in the previous year. CFO Nelson Chai said in a statement that Uber is “well on track to reach our 2021 profitability targets”.

Uber (UBER) said he wants to achieve profitability on an adjusted basis before the end of this year. Like Lyft, which reported its fourth-quarter results on Tuesday, Uber saw an improvement over the third-quarter last year, but still saw a decline in revenue due to the ongoing pandemic’s impact on its Rides business. Uber had revenue of $ 3.2 billion for the fourth quarter, up 16% from the same period a year earlier.

Uber continued to rely on Eats, its food delivery industry, which rose 224% to $ 1.4 billion in the fourth quarter compared to the previous year. The ride’s revenue was $ 1.5 billion, down 52% from a year earlier.

The company has been working for the past few months to strengthen its delivery portfolio. In July, Uber acquired one of its smaller competitors for food delivery, Postmates, for $ 2.65 billion in a total transaction. Last week, the company announced it was going to sell Drizly.

The acquisition comes as Uber abandons its higher – and more expensive – ambitions. The company sold its autonomous vehicle research division and its air-taxi operations in December.

Uber, which has a history of strong losses, felt the effects of the pandemic. In the first half of last year, the company cut about 25% of its staff over several rounds of layoffs as the global health crisis put its core business under pressure.

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