“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:
- Net Loss For 2020: $6.76 Billion (20.5% improvement)
- Revenue: $11.13 Billion (14% decline)
- Q4 Revenue: $3.16 Billion (16% decline)
- Q4 Net Loss: $968 Million (11.2% decline)
- 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 $207 million in Didi shares to date.
What’s Next: “Uber’s shares are up more than 80% from early November, benefiting from a big regulatory win in the company’s home state and, more recently, from Covid-19 vaccine distribution. Shares were down about 4% in after-hours trading Wednesday.”
From my tweet yesterday:
“$UBER is building a the super app for mobility and logistics (ride-hailing, meals, groceries, alcohol, freight)”