Uber’s revenue was hit hard during the pandemic. Uber stock has fallen more than 4% and Uber has made changes in its business strategy.
The company reported a loss of $ 1.02 per share on $ 2.24 billion in revenue. With the pandemic situation, revenue decreased 29% over the same period last year.
Gross bookings fell 35% from the year-ago period to $10.2 billion. Wall Street expected gross bookings of $10.5 billion.
Gross bookings of its Uber Eats food-delivery service jumped 106% to $6.96 billion. That beat estimates of $6.57 billion.
Because of a pandemic, limit everyone’s travel. Total bookings are reduced by 75%. During the pandemic, Uber changed its business and thus its revenue ratio changed.
Ride-sharing came to a screeching halt for both Uber and its rival Lyft (LYFT) as the global lockdown went into effect in early March.
Both companies are downsizing. Lyft has announced plans to cut the workforce by nearly 17% and cut wages. Uber cuts its workforce by 14%.
In contrast, Uber Stock has aggressively expanded its food delivery business. Uber says revenue grew more than 100% in the second quarter. A growing number of people order food delivery during home isolation.
They are trying to make up for the difficulties of declining sales.
Cost-cutting has been made early. Uber and Lyft look forward to higher returns as we enter 2021 and beyond. Uber sees that the service industry is on the rise, so it will promote food delivery.