278 days ago • Posted by Charles-Henry Monchau
UBER-raschung! Uber Eats surpassed ride-share revenues for the 1st time
In its Q2 earnings report yesterday, Uber offered the first comprehensive picture of how the Pandemic impacted its business model. Overall revenues fell by 29% but were still slightly better than expected. Actually, it was a tale of two businesses for Uber. On one-hand, ride-share bookings collapsed by 73% annually. On the other hand, Uber Eats bookings were up 113% last quarter, pushing revenues to $1.2 billion and thus ahead of its ride-sharing business for the first time. Will we see some mean-reversion in Q3? The bull case for Uber ride-sharing is that subway-wary travelers will opt for Uber rides. But given the recent uptick in Covid cases, customers might continue to stay at home and thus boost Uber Eats numbers. Hence the acquisition of Postmates in July for $2.7 billion. The stock (UBER) is down 3% pre-market.