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's delivery business is now larger than ride-hailing https://t.co/1Xh9xFDRIM by @kirstenkorosec and @alex
— TechCrunch (@TechCrunch) August 6, 2020
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.
