Uber cuts losses on food delivery; observes decent uptick in ride bookings

Post the pandemic existential crisis on almost every industry, one of the leading ride-hailing and sharing companies- Uber Technologies Inc. has recently announced that the company has started recovering from the losses brought forth by the novel coronavirus led lockdown. The company mentioned in a statement that it was positively monitoring to achieve its purpose of attaining an adjusted revenue by the end of this year.

With businesses coming on track slowly, Uber projects to gain full recoveries in the ride sharing and delivery markets soon. It would be critical to mention that the orders at Uber’s food delivery platform grew significantly in the fourth quarter, as many nations and the United States issued new lockdown norms, shutting down restaurants and prompting people to order food online.

This made the company’s delivery income to triple at around USD 1.36 billion in 2020. Moreover, this also propelled the company’s footprint in aggressive area by taking over a majority stake in alcoholic beverage delivery service- Drizly for USD 1.1 billion and food-delivery rival Postmates for USD 2.65 billion.

It has been reported that Uber’s ride hailing service was one of the severely affected businesses during the pandemic. The fourth-quarter mobility income in 2020, which comprised largely of rides, fell by around 52%. In a bid to recover from the losses incurred in 2020, Uber mentioned that it had lowered down the prices in the fourth quarter, with total prices and bills plummeting down by 14% in that interval.

Besides, the company, in December, declared selling out its self-driving Advanced Technologies Group in a USD 4 billion deal at a steep drop in valuation. Additionally, it also handed over there keys to its air travel business – Elevate. These initiatives, as per official sources, are likely to accelerate the company’s profitability purpose over the forthcoming years.

Post the announcement, the shares of Uber fell by 3% in after-hours buying and selling after attaining round 6% in the course of the day.

Source Credit: https://newschant.com/technology/uber-reduces-losses-on-food-delivery-expansion-modest-uptick-in-ride-bookings/

By Priya Deshmukh

Priya started her professional journey with a career in content writing. Endowed with an MBA degree in Marketing, she believes in the power of content and its prominence in today’s fast-paced world of online marketing. Priya writes news articles for people.partilepep.com across business, technology, healthcare, and other areas of interest.