SAN FRANCISCO – Uber yesterday reported another hefty loss in the final three months of 2020, as the smartphone-summoned ride business struggled during the pandemic.
The loss of US$968 million (RM3.14 billion) was narrowed slightly from US$1.1 billion (RM4.45 billion) in the same period a year earlier, according to Uber, which saw a surge in its food delivery operations to partly offset the decline in ridesharing.
Revenue in the quarter was US$3.2 billion (RM12.94), a 16% decrease from the same period a year earlier.
“While 2020 certainly tested our resilience, it also dramatically accelerated our capabilities in local commerce,” Uber chief executive Dara Khosrowshahi said.
Uber said its “mobility” segment in the quarter including ride-hailing was down 52% from a year earlier while its delivery operations – including its Uber Eats meal service – saw a revenue jump of 224%.
Chief financial officer Nelson Chai said the improving financials suggest Uber is “well on track to achieving our profitability goals in 2021.”
Daniel Ives at Wedbush Securities said the results represent “another major step in the right direction” and suggests an improving picture as Uber emerges from the pandemic.
“The company is clearly seeing a rebound in ridesharing metrics and coupled with a leaner expense structure is setting a stage for snapback in growth and profitability heading towards the end of 2021 and into 2022,” Ives said in a research note.
Uber shares dipped 1.7% in after-hours trade following the results. – AFP, February 11, 2021
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