Despite this situation, Uber maintained that it will achieve its goal of making an adjusted profit by the end of next year.
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August
7, 2020
2 min read
The shared transport company Uber continues to experience the ravages of the COVID-19 pandemic. This time, although it earned more revenue from meal delivery services, revenue from passenger transportation continued to decline.
Its sales fell 29% in the second quarter to $ 2.24 billion, ending a decade of unbridled growth.
Despite this situation, Uber maintained that it will achieve its goal of making an adjusted profit by the end of next year. Food delivery has become a central part of that strategy, even more so after the $ 2.65 billion deal to buy Postmates.
The sharp drop in passenger numbers in the second quarter reflects the overall contraction in the travel industry. With many retailers, schools and workplaces closed or with reduced capacity, transportation use will likely remain low for the near future and Uber could be “permanently affected,” according to Daniel Morgan, portfolio manager at Synovus Trust. “Continued high levels of COVID-19 cases are likely to weigh on demand for carpooling throughout 2020 and into 2021,” he wrote in a note to customers.
In the second quarter, gross delivery bookings doubled to $ 6.96 billion. Mobility, which is primarily made up of passenger transportation but also includes scooter rentals, decreased 75% to $ 3.05 billion.
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