Business

Uber reports a 29% drop in its second-quarter results, but revenues on food delivery verticals grew by 103%

Uber also concluded the acquisition of Chilean grocery-delivery app Cornershop in the period, leveraging its footprint in Latin America

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  • Uber reported its second-quarter results this Thursday with $2.24 billion in revenues against $2.18 billion expected by the market;
  • On a year over year basis, however, Uber’s revenues shrank by 29% from $3.17 billion reached in 2019 Q2;
  • “The Covid crisis has moved delivery from a luxury to a utility,” said CEO Dara Khosrowshahi. Uber’s food delivery unit increased 113% in bookings and 103% in revenues.

Uber announced this Thursday its financial results for the second quarter of 2020 with $2.24 billion in revenues, a 29% drop in comparison with the same quarter of 2019, but beating market expectations of $2.18 billion.

In Latin America, the ride-hailing giant reached $232 million in revenues during the quarter, against $417 million in 2019 Q2, a 44% decrease. But Uber’s delivery verticals are up and running. While the rides (mobility) unit recorded a 67% drop YoY in revenues; food delivery grew 103% compared to the same period of the last year, and bookings were up 113%.

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“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,” said CEO Dara Khosrowshahi.

Driving efforts to expand its product portfolio, the ride-hailing company extended the set of offering to grocery, convenience, pharmacy, and prescriptions during the quarter, as in what happened through the acquisition of the Chilean grocery-delivery app Cornershop, concluded in the period. Cornershop has been leveraging Uber’s reach in Latin America and other markets by offering customers in select cities in the region, the U.S., and Canada the ability to order groceries through both the Uber and Uber Eats apps.

“Our team continues to move at Uber speed to respond to the pandemic’s impact on our communities and on our business, leading our industry forward with new products and safety technologies,” Khosrowshahi added. Recently, Uber announced the debut of Uber Taxi in São Paulo, Brazil, which, according to the company, will help strengthen the platform’s relationship with corporate customers.