While some industries were hampered by 2020’s pandemic, other businesses and companies were in the right place, at the right time. Among those services that turned out to be extremely lucrative during quarantine, grocery and food delivery businesses were at the forefront. Uber, a leading name in the rideshare and delivery business, recently unveiled financial statements for the period of Q4 2020.
“While 2020 certainly tested our resilience, it also dramatically accelerated our capabilities in local commerce, with our Delivery business more than doubling over the year to a nearly $44 billion annual bookings run-rate in December,” Uber CEO Dara Khosrowshahisaid. “With two global businesses stitched together by world-class tech and increasingly valuable membership programs, we are more focused than ever on making people’s lives a little bit easier—helping them go wherever they want and get whatever they need.”
Uber — Business Growth and Decline
While the rideshare company certainly saw impressive gains in some departments, other services actually experienced a substantial decline. The business reported Q4 gross bookings amounting to $17.2 billion, a 4% decrease year-over-year (YoY) on a constant currency basis. This number reflects a 128% increase in gross delivery bookings but also a 47% decrease in gross mobility bookings. Furthermore, the rideshare company saw a 15% decline in revenue YoY due to a 224% increase in delivery revenue alongside a 52% drop in mobility revenue YoY.
Still, Uber managed to reduce its business net losses this past year from 2019’s $8.51 billion to 2020’s $6.77 billion, a roughly 20% improvement. The company also holds an impressive 35% share of the food delivery and rideshare market.
“We made some big moves this year, acquiring businesses like Cornershop and Postmates while divesting others like ATG and Jump, and structurally lowering our cost base,” said Nelson Chai, Uber’s CFO. “These decisions have resulted in a much more focused and ultimately stronger company. In Q4 we continued to deliver improving Adjusted EBITDA performance, up $171 million quarter-over-quarter, and remain well on track to achieving our profitability goals in 2021.”
Competition and Acquisitions
While Uber’s food delivery service continues to experience rapid business growth, the company is setting its sights on expanding that branch of operations. On February 2, Uber announced in a press release that it would be acquiring Drizly, an online alcohol marketplace and delivery service, for $1.1 billion in stock and cash.
Despite the growth of the company in the delivery sector, Uber still trails behind its competitor DoorDash, which owns 48% of the food delivery market. Doordash boasts a market cap of $68.35 billion, compared to Uber’s $116.97 billion; however, Doordash’s stock price currently stands at $215.16, while Uber sits at $63.18 per share. Doordash plans to report the company’s financials for Q4 2020 as well as the full year on February 25, 2021.
James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.