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Uber Eats Grows Bigger as Uber Loses Billions

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Because of COVID-19, Uber Eats has grown bigger than Uber’s ride-hailing service, even as Uber keeps losing billions of dollars.

No one’s going out to eat anymore because of COVID-19, so food delivery apps have seen a sharp uptick in business. Take Uber, for example. Since everybody’s ordering food online now, Uber Eats has grown bigger than Uber’s taxi service. Despite this rise, Uber still suffered losses this year.

Uber Eats Keeps Growing

Tech Crunch reports that Uber Eats has now become Uber’s biggest service in terms of adjusted net revenue. Nobody’s going to restaurants anymore. Because of this fact, Uber switched up business strategies.

In the report, Tech Crunch adds that Uber Eats is earning more gross dollars than Uber’s ride-hailing service. The pandemic has forced Uber to focus on delivering food instead of driving people around.

However, Uber relies on its two main businesses to overcome the challenge of COVID-19.


Uber Suffers Losses

Uber has suffered a net loss of $1.78 billion in the second quarter of 2020. In 2019, the company posted a loss of $5.24 billion. 

In the second quarter, Uber still managed to earn more revenue than the $2.18 billion expected by investors. 

During after-hours trading, Uber’s share prices also dropped by around 4%. 

What’s Next for Uber

Uber CEO Dara Khosrowshahi expects his company’s ride-hailing service to rise again once governments allow people to travel. He also says that Uber Eats can help the company weather more lockdowns.

Irene grew up in Dayton, Ohio, and now lives in New York as a full-time environmentalist and a part-time journalist. She was previously an editor at local online newspaper, where she wrote about topics including technology, finance and the media industry.

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