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Uber’s Food-Delivery Business, Cost Cuts Cushion Pandemic Hit

The ride-hailing app is finding its footing in the post-Covid-19 world.
(Julio Ricco)
(Julio Ricco)
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“Uber Technologies Inc. posted a narrower annual loss on the back of its food-delivery business and aggressive cost cuts, even as the coronavirus pandemic crushed its core ride-hailing operations,” WSJ writes.

Numbers To Consider:

  1. Net Loss For 2020: $6.76 Billion (20.5% improvement)
  2. Revenue: $11.13 Billion (14% decline)
  3. Q4 Revenue: $3.16 Billion (16% decline)
  4. Q4 Net Loss: $968 Million (11.2% decline)
  5. Q4 EBITDA Loss: $454 Million (26.2% decline)

How Uber Got Here:

  • Well, Uber took a hard look at the way it did things during the pandemic, “cutting about a quarter of its staff and shedding non-core businesses, among other moves.” It saved roughly $1 billion in fixed expenses last year.
  • Meanwhile, Uber doubled-down on delivery — it bought rival Postmates last year, expanded its offering and entered the alcohol delivery space this month with a $1.1 billion acquisition of Drizly.
  • Uber, according to The Information, also revealed plans to sell 8% of its $6.2 billion stake in Chinese ride hailing giant Didi Chuxing by the end of the first quarter. It has unloaded around $207 million in Didi shares to date.

What’s Next: “Uber’s shares are up more than 80% from early November, benefiting from a big regulatory win in the company’s home state and, more recently, from Covid-19 vaccine distribution. Shares were down about 4% in after-hours trading Wednesday.”

Justin Oh:

From my tweet yesterday:

“$UBER is building a the super app for mobility and logistics (ride-hailing, meals, groceries, alcohol, freight)”

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