Uber's Ride Business Tanks as Food Delivery Booms

Uber has beaten revenue expectations in the second quarter, but has also revealed another massive loss. The report also revealed an interesting shift in Uber's business during a time of massively restricted mobility due to the coronavirus pandemic.

The company's food delivery segment surpassed its core ride-hailing business for the first time, as the latter saw gross bookings plummet by 75 percent and the former more than doubled in size. "We are fortunate to have both a global footprint and such a natural hedge across our two core segments: as some people stay closer to home, more people are ordering from Uber Eats than ever before,“ Dara Khosrowshahi, Uber’s CEO, said.

With gross bookings of $10.2 billion for the quarter ended June 30, Uber’s revenue amounted to $2.2 billion. Meanwhile net losses amounted to $1.8 billion, including $131 million in stock-based compensation expense and $382 million in restructuring and related charges.