Uber rides take COVID-19 hit but food-delivery business doubles

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Homebound customers of Uber Technologies Inc more than doubled their orders from the company's food-delivery service in the second quarter but ...

Homebound customers of Uber Technologies Inc more than doubled their orders from the company's food-delivery service in the second quarter but demand for ride-hailing trips only marginally recovered from pandemic rock-bottom.

Uber's chief executive officer, Dara Khosrowshahi, told analysts on a conference call on Thursday that rides recovery depended on the ability of different countries to contain the virus, with the recovery so far led by Asia, excluding India. The number of active platform users across the 69 countries in which Uber operates nearly halved year-over-year, from 99 million to 55 million.

Uber's ride-hailing segment remained battered by the coronavirus crisis, with revenue from the United States and Canada, its largest combined market, declining US$1.25 billion. Nevertheless, ride-hailing was the only segment generating an adjusted EBITDA profit, of US$50 million. He also told analysts that Uber's food-delivery business would be profitable in the vast majority of countries in which it operates within a couple years.

 

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