Uber's Food-Delivery Business, Cost Cuts Cushion Pandemic Hit

By Preetika Rana 

Uber Technologies Inc. posted a narrower annual loss on the back of its food-delivery business and aggressive cost cuts, even though the coronavirus pandemic crushed its core ride-hailing operations.

The San Francisco-based company reported a net loss of $6.76 billion for 2020, compared with a loss of $8.5 billion for 2019. While widespread shelter-in-place orders dealt a blow to Uber's rides business, its food-delivery arm soared as the same mandates kept people from going to restaurants. Revenue declined 14% year-over-year to $11.13 billion.

Uber overhauled its business during the health crisis, cutting a quarter of its staff and shedding noncore businesses, among other moves, leading it to save $1 billion in fixed expenses last year.

The company's fourth-quarter revenue declined 16% year-over-year to $3.16 billion. The net loss in the three months through December narrowed to $968 million compared with $1.09 billion in the year-earlier quarter.

Uber's adjusted loss before interest, taxes, depreciation and amortization also narrowed in the fourth quarter to $454 million compared with a loss of $615 million in the year-earlier quarter. Uber has said it expects to become profitable by this measure by the end of this year.

The company's adjusted Ebitda loss beat Wall Street's forecast. Analysts surveyed by FactSet had predicted on average an adjusted Ebitda loss of $507 million in the fourth quarter.

Write to Preetika Rana at [e-mail]

(END) Dow Jones Newswires

February 10, 2021 16:19 ET (21:19 GMT)

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