2020 is an extremely difficult year for Uber. The American giant has been hard hit by the Covid-19 pandemic, as evidenced by its third quarter (Q3) revenue from July to September.
Mobility sinks, Uber Eats flares up
The company lost $ 1.1 billion in the past three months. It is not surprising that the gross sales of the “Mobility” division, to which VTC in particular belong, fell by 53% compared to the same period last year. The number of trips booked also fell by 45% as the population shrank. Move much less to practice social and physical distancing. Despite impressive losses, it started to improve from the second quarter when Uber’s ridesharing fell 73%.
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Even so, Uber Eats has benefited greatly from the pandemic, with food orders (including restaurant and grocery deliveries) up 125% year over year, and that sector continues to grow with the recent acquisition of Postmates. The company also claims to partner with nearly 560,000 restaurants, 15% of which are in France.
Total Uber revenue, including all segments, declined 18% over the same period from 2019.
A little hope
Despite these numbers, Uber CEO Dara Khosrowshahi is encouraging: “All the first evidence we see makes it increasingly clear that it’s all about when, and not if, our healthcare industry. Mobility will recover ”. In fact, Uber is signing a Q3 that is much better than the first quarter that saw a loss of $ 3 billion.
In addition, thanks to Proposition 22, the transportation giant has just won a major victory in California. The latter will in particular enable him not to qualify his drivers as employees and thus avoid the costs associated with covering an entire range. Benefits and protections, including sickness and other paid leave, unemployment insurance and health care. Now Uber wants to enforce similar measures in the other US states.