Uber views ‘fundamental shift’ in demand for food delivery
- Guest Posts
- November 6, 2020
Uber’s food delivery business has dramatically increased, as the pandemic builds hunger for online grocery orders and restaurant takeaway.
The firm said income from its Uber Eats service hit $1.4bn (£1bn) in the three months to 30 September, bouncing 124% from a similar period in 2019.
The development helped offset steep decreases in the company’s core rides business.
In any case, Uber actually recorded lost about $1.1bn in the quarter, generally equivalent to a year ago.
Uber supervisor Dara Khosrowshahi said demand for food delivery has remained solid even as nations lift limitations, a promising sign for development in the Uber Eats business.
“We’ve got more eaters, they’re staying longer, they’re eating more,” he told investors on a conference call to discuss the firm’s quarterly results.
“There’s no question in my mind that … there’s a fundamental behavioural shift that has gone on,” he added later. “People aren’t going to stop using Amazon. People aren’t going to stop using Eats.”
The development in delivery denoted a stark difference to the company’s ride-hailing business.
There, Uber said bookings and income for its taxi service remained generally 50% of a year ago’s levels, regardless of progress since the spring.
Demand has recouped most in Europe, while lagging in the US and Canada, its most significant market, executives said.
They cautioned that the resurgence in Covid cases in Europe and new limitations in nations like the UK and France would probably hit demand in coming months.