Uber expands food delivery further, sees ride demand pick up
Uber Technologies on Wednesday (February 10) said revenue at its ride-hail and delivery businesses increased on a quarterly basis and said it was well on track to reach its goal of achieving an adjusted profit by year-end.
Shares fell 3% in after-hours trading after gaining around 6% during the day in reaction to smaller ride-hail rival Lyft saying on Tuesday (February 9) it might become profitable during the third quarter, three months ahead of a previous goal.
Uber reported a loss on an adjusted basis before interest, taxes, depreciation and amortization of $454 million, significantly narrower than analysts’ average expectations for a $514 million loss, according to Refinitiv data.
The narrower-than-expected adjusted EBITDA loss was helped by significant cost cuts the company instituted throughout 2020, including reducing staff by nearly 30% from the beginning of the year.
A focus on its core rides and food delivery business and divestments of ancillary units will allow Uber to emerge from the pandemic a slimmer company.
Adjusted EBITDA, which excludes the cost of the company’s extensive stock-based compensation and other potentially significant items, is the profitability metric Uber uses.Uber reported $3.17 billion in total revenue in the months from October through December.
Fourth-quarter mobility revenue, largely comprised of rides, declined by 52% from last year, but at $1.47 billion was up 8% on a quarterly basis despite new lockdown measures in the United States, Europe and the Middle East.