A strong showing from Uber’s delivery service has not helped to offset huge losses amid dwindling demand for rideshares.
The ride-hailing app has faced huge setbacks as lockdown restrictions all but decimated its core business. In the third quarter the company posted losses of more than £1bn and revenue also missed analysts’ estimates.
Uber reported a loss of $454m loss in the fourth quarter, slightly lower than analysts’ average expectations for a $514m loss.
It reported a 52 per cent decline in fourth-quarter mobility revenue to $1.47bn in the previous year, but it represents a huge turnaround for the app. In the second quarter, Uber’s Ride bookings fell a staggering 75 per cent.
Shares are down 2.6 per cent in after-hours trading having climbed six per cent during the day. Rival Lyft’s shares jumped earlier after it said it is cutting costs and expects to be profitable in the third quarter.
Uber’s delivery division has done some heavy lifting with revenue tripling year-over-year to $1.36bn, and grew 19 per cent on the previous quarter.
It has expanded further into the space acquiring food-delivery service Postmates for $2.65bn and booze delivery service Drizly for $1.1bn.
“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” chief executive Dara Khosrowshahi said.