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It was the story of two business units affected by the Uber pandemic on Tuesday, when the company released its fourth quarter results.
The good news was that their delivery business was growing – 130% in the quarter – while millions were still at home looking for deliveries of everything from avocado to aspirin. However, its incentive unit – down 47% – is still trying to set a pace on the road to recovery like so many other businesses.
“While 2020 has certainly tested our resilience, it has also dramatically accelerated our capabilities in local commerce, with our delivery business more than doubling over the year to an annual reserve rate of almost $ 44 billion in December,” said Dara Khosrowshahi , Uber CEO, in the launch report. “With two global companies united by world-class technology and increasingly valuable affiliation programs, we are more focused than ever on making people’s lives a little easier – helping them get where they want and get what they need. “
The delivery business raised $ 10.1 billion, compared with $ 6.78 billion for a ride. The shares fell almost 4% on the floor.
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Gross bookings for the Uber delivery segment grew 18% quarter-over-quarter, 128% year-over-year in Europe, the Middle East and Africa, up 142% year-over-year in the US and Canada, up 130% year-on-year in Latin America and 79% in the year in the Asia-Pacific region.
The delivery segment posted an adjusted loss of $ 145 million in the quarter, improving by $ 38 million over the previous quarter and $ 316 million over the previous year. Its loss margin improved to 1.4% of gross reserves, compared to 2.1% in the third quarter and 10.5% a year ago.
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Meanwhile, Uber’s total mobility travel in the fourth quarter grew by 22% to 1.44 billion. Uber for Business gross bookings grew about 45% over the previous quarter, with the majority derived from non-commercial travel products, such as delivery offers and guest products. The division’s products grew more than 360% t due to strong holiday demand for meal programs, vouchers and gift cards, adding several major customers, including Microsoft.
Khosrowshahi repeatedly reiterated during his call with analysts on Tuesday that he was “optimistic” that the ride-sharing business “would begin to grow” again, but expressed concern that Uber did not have “enough drivers to meet the demand we will have “. In 2020, Uber paid more than $ 22 billion to drivers and couriers.
The former Expedia CEO also believes that the opportunity will come as Uber expands to work with other modes of transportation. Last year, Uber acquired UK-based Autocab, a technology company that connects passengers with local taxi operators. Khosrowshahi believes that as soon as commuting and travel returns to previous levels, taxis will seek to meet demand and Uber will benefit.
General monthly consumers of Uber’s active platform grew 19% over the previous quarter, to 93 million. On average, monthly active consumers spend more than $ 60 a month on more than five transactions on the Uber platform.
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Uber’s net losses totaled $ 6.77 billion, an improvement of 20% over the $ 8.51 billion loss in 2019. The company’s adjusted loss was $ 454 million.
Chief Financial Officer Nelson Chai said the company remains “well on track to achieving our 2021 profitability goals”, citing the closing of the acquisition of the Postmates food delivery platform on December 1, which Uber said “adds a strong brand and a loyal customer base, complementary geographies, more than 100,000 partner restaurants, more than $ 4 billion of gross bookings with an execution fee and a large and growing offer of delivery as a non-food service (“DaaS”). ” Delivery as a service accounted for 18% of Postmates’ December orders, with notable partnerships including Walmart, Apple and 7-Eleven.
Membership for Uber Pass, Eats Pass and Postmates Unlimited exceeded 5 million, with membership programs now available in 16 countries. In addition, American Express Green, Gold, Platinum and Centurion cardholders have access to 12 months of complimentary Eats Pass membership.
Partner restaurants active in Uber Eats grew by more than 75% year over year, exceeding 600,000, with notable additions including Union Square Hospitality Group, Chicken Salad Chick, Which, Pret a Manger, La Madeleine Country French Cafe, Wings Etc, Ben & Jerry’s, Cinepolis, Fresh Hospitality and Barberitos in the United States. Uber also has a partnership with Papa John’s in Canada, Chipotle in the UK and Alain Ducasse in France.
Uber also signed an agreement to acquire Drizly, the online alcohol market, for approximately $ 1.1 billion in shares and cash. The acquisition is expected to close in the first half of 2021, subject to regulatory approval and customary closing conditions.
Drizly can boost future gross orders for delivery of groceries and non-food items, which in the fourth quarter exceeded the $ 1.5 billion annualized execution rate. Another recent acquisition may also help in the area.
| Ticker | Safety | Last | To change | Change % |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES INC. | 63.18 | +3.57 | + 5.99% |
Uber recently completed the acquisition of food delivery startup Cornershop, which will help expand its food delivery business in Mexico. New partnerships include Morton Williams in the United States, H&M and Rexall Pharmacy Group in Canada, Muffato and Raiasil in Brazil, Lawson, Francfranc and Seiyu in Japan, PX Mart in Taiwan and Sainsbury’s and McColls in the United Kingdom.
The company also noted its divestments from its ATG, Elevate and JUMP businesses, as well as the sale of approximately $ 207 million of its shares in Didi, a Chinese hitchhiking company.
It also entered into an agreement to sell an additional $ 293 million of its shares, which is expected to occur in the first quarter of 2021, subject to certain closing conditions. The aggregate shares sold by Uber represented 8% of its total on December 31.