Uber's delivery service is now bigger than its rides business

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As the pandemic ground its ride-hail business to a halt, Uber's delivery service took on new importance. Now, it's Uber's biggest source of revenue.

Revenue from Eats reached $1.2 billion in the second quarter, double a year earlier, the company reported Thursday. Meanwhile, Uber's Rides business revenue plummeted 67%, to $790 million. Similarly, gross bookings for Rides declined 73% over that period, while they grew 113% for Eats."Our delivery business alone is now as big as our Rides business was when I joined the company in 2017," said CEO Dara Khosrowshahi on a call to discuss the results.

The company cut roughly 25% of its workforce, or 6,700 employees, as it grappled with pressure from the pandemic. Read MoreUber's revenue declined 29% in the second quarter, to $2.2 billion, compared to the same period last year. Last quarter, it lost a staggering $2.9 billion, posting revenue of $3.5 billion, a 14% increase from a year earlier.Uber, which started as a ride-hailing service, has long dabbled in other categories, including meal deliveries with its Uber Eats service.

 

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Really interesting

Really now? So why does food die in my restaurant window because they can't find a Uber eats person nearby I smell bullshit!

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