By Therese Poletti
Uber said it may license its logistics technology to taxi and public transport agencies.
AFP / Getty Image
How Uber Technologies Inc.’s core cycling business is. suffering through the pandemic, company officials made interesting statements Wednesday, including the ability to allow their taxi and mobility competitors to allow their technology.
Earlier Wednesday, Uber reported another quarterly loss, with a 51% year-over-year decline in revenue in its cycling business, which Uber calls its moving business. Revenues in transit fell to $ 1.47 billion, down from $ 3.05 billion a year ago. Delivery, however – made up of Uber Eats and now Postmates – is compliant with people stuck at home ordering admission, almost reaching movement levels. Deliveries were up 220% to $ 1.35 billion.
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Activists looked optimistic about the slow reopening of some cities around the world, monitoring a 90% recovery in their business in Brazil and a 60% gain in Taiwan.
“The recovery in these markets reflects the pent-up desire of consumers to start moving again,” said Uber CEO Dara Khosrowshahi. He then set out the most interesting part of the employment call: “As Uber continues to receive a ration compared to other modes of transport, over the next six months we will begin to prepare our business to go from maintenance to redecoration. ”
As for “updating,” Khosrowshahi said the company is now looking to offer new mobility products, and could partner with taxi companies and public transport systems by offering the software and their data analysis. It is unclear whether Uber wants to include taxis and public transport as part of its “super app” concept, as it seeks to offer tours and multiple delivery services all in one app, but that might be logically appropriate.
“I am even more optimistic about the investments we are making, and other modes of transport and helping the world’s mobility groups get back and forth, by empowering taxis with our management technology , our e-hail technology, our pricing technology, etc.…. I think it really sets up a platform for transport of any kind in your city, and a platform unmatched in terms of global scale and breadth, ”he said.
A bigger issue is whether taxi and public transport organizations want to partner with the company that has made up for much of what it has lost in the last few years, but these competitors could be influenced by the power of Uber’s logistics software.
“Dara is taking a broad strategic approach to the market and is looking at taxis as potential technology partnerships, as well as public transport,” said Wedbush analyst Dan Ives. Securities, in e-mail. “Uber post-pandemic will be a different company and will expand oil branches into different modes of transport for additional revenue opportunities.”
The Uber CEO also said that he believes his moving business in 2022 or 2023 will grow again at “major two-digit levels,” and that the company will have fair employment at some point in 2021 .
Ives said it is possible to meet Uber targets. With the coronavirus vaccine now here, and with a likely high release in the summer, “we expect consumer demand for Uber to show a major backlash through 2021, with the company get back to pre-COVID cycling by 2022, ”Ives said in a note.
Nonetheless, investors have a lot to parse through many optimistic predictions – some perhaps overly optimistic – as they try to figure out how feasible any of them are. In after-hours trading, Uber shares fell nearly 5%.
The potential recovery of Uber in most of its business is clearly dependent on the world returning to normalcy, which is virtually impossible before tell right now.