Uber Q4 2020 protection

Uber stock fell shortly after the bell on Wednesday as the company delivered mixed earnings results in the fourth quarter.

Here’s how Uber went against expectations:

• Call: 54 cents per share was expected, against 56 cents, according to a consensus of analysts surveyed by Refinitiv.
• Income: $ 3.17 billion versus the $ 3.58 billion expected per Refinitiv.

In total, Uber lost $ 968 million on a GAAP basis in the quarter, an improvement from a year ago when losses rose to $ 1.1 billion. For 2020 as a whole, Uber’s net loss was to $ 6.77 billion, about a 20% improvement from a staggering loss of $ 8.51 billion in 2019.

Here ‘s how Uber’ s biggest business sectors performed in the fourth quarter of 2020:

• Transfer (reservation): $ 6.79 billion, down 50% from a year ago.
• Delivery (full records): $ 10.05 billion, up 130% from a year ago.

While delivery is still a long way off in reservation, in terms of revenue Uber’s core travel business has outpaced delivery again.

Chief Executive Dara Khosrowshahi said on Wednesday’s employment call that Uber sees “a great many opportunities” in the shifting sector as different sectors recover from the pandemic. The time to get over the moving industry depends largely on when cities reopen, he said.

Last August, Uber acquired a market tech company, Autocab, which connects cyclists with local taxi operators. Khosrowshahi suggested that as travel and travel begins to increase, taxis will look to attract demand and Uber can benefit.

The CEO was concerned about whether Uber would have enough drivers to meet the demand it expects to meet in the transition zone as the pandemic escalates.

Earlier this month, the company announced plans to acquire the Drizly alcohol delivery app, which the company plans to integrate into Uber Eats, their food delivery service. According to a statement from Uber, the contract was valued at $ 1.1 billion in stock and cash combined. (The companies did not break down the proportion of the contract made in stock compared to cash.)

In its update to shareholders on Wednesday, the company said restaurants on Uber Eats exceeded 600,000 in the fourth quarter, with Union Square Hosting Group outlets, Chipotle locations in the UK, Wings Etc. and many others.

Delivery through Uber includes more than hot restaurant food as well. The company is scaling the non-food deliveries after acquiring Cornershop in Mexico for groceries, and Postmates courier service that delivers delivery from Apple, among others. In the last quarter of 2020, Uber partnered with retailers as far afield as H&M in Canada and Seiyu grocery and department stores in Japan.

According to Edison Trends research estimating trading data from July 1, 2019 through October 13, 2020, Uber Eats food delivery represents approximately 35% of the total U.S. market after the acquisition of the Postmates company. Uber Eats laments DoorDash, but the former Grubhub food delivery leader and emerging players like ChowNow and Slice are in high demand.

In the last quarter, Uber CEO Dara Khosrowshahi spoke about the company ‘s membership and advertising businesses, and said that in selected U.S. cities Uber was seeing recovery moves from the pandemic.

At that time Uber Pass and Uber Eats Pass had paid over 1 million members. The company now has more than 5 million members, according to the company’s fourth-quarter note to investors.

Khosrowshahi said Wednesday that as Uber gets a higher percentage of customers who pay for membership over time, it expects marketing costs to come down. The company is still early in the development of Eats Pass, he noted, and will focus on “restaurant choice development” to gain new customers and members.

This is an evolving story … Please check back for updates.