Uber lost $ 6.8 billion in 2020

Uber lost $ 6.8 billion in 2020

by
The full-year loss, which Uber reported along with its fourth quarter results on Wednesday, represented a significant drop from the $ 8.5 billion it lost in 2019. During the year, Uber sold expensive developments, cut staff and focused on what its CEO previously called “profitable growth”.

The company reported $ 968 million in losses in the last three months of 2020, including $ 236 million in share-based compensation expenses, up from nearly $ 1.1 billion the previous year. CFO Nelson Chai said in a statement that Uber remains “well on track to meeting our 2021 profitability goals”.

Uber (UBER) said it aims to achieve profitability on an adjusted basis before the end of this year. Like Lyft, which released its fourth quarter results on Tuesday, Uber saw some improvement from last year’s third quarter, but still experienced declines in revenue due to the ongoing pandemic impact on its Rides business. Uber posted revenue of $ 3.2 billion in the fourth quarter, down 16% from the same period last year.

Uber continued to rely on Eats, its food delivery business, which saw a revenue increase of 224% to $ 1.4 billion in the fourth quarter compared to the previous year. Tour revenue was $ 1.5 billion, down 52% from the previous year.

The company has been working to strengthen its delivery portfolio in recent months. In July, Uber acquired one of its smaller food delivery competitors, Postmates, for $ 2.65 billion in a stock deal. Last week, the company announced that it is acquiring the alcohol delivery startup Drizly.

The wave of acquisitions comes as Uber abandons its highest – and most expensive – ambitions. The company sold its autonomous vehicle research division and its flying taxi operations in December.

Uber, which has a history of marked losses, felt the effects of the pandemic. It cut about 25% of its staff in several rounds of layoffs in the first half of last year, as the global health crisis put pressure on its core business.

.Source