Is Uber Eats Still Losing Money?
Do you wish to know if Uber Eats is still losing money? One can say so if there is no longer demand, but first off, let’s dig in to find out.
To answer the question, is Uber Eats still losing money? In the company’s most recent earnings report, Uber reported that its food delivery business, which includes Uber Eats, lost $232 million in the third quarter of 2020.
Also, the company’s overall revenue from food delivery was $2.2 billion, a growth of 74% from the same period in 2019.
It happened that Dara Khosrowshahi, CEO of Uber, said that the company’s focus has shifted to expanding its wings regarding delivery and technology so it can improve customer experience.
As a result, the company will continue to grow its revenue and potentially reduce its losses in the future.
Is Uber Eats Still Losing Money?
Despite all measures taken, the company is still losing money, but there sure is a way out, which is that the company will have to cut down on its losses by a third.
Even though all methods have been tried, there is still a head over when it comes to customer service, and this has become a problem as there are still high rates of losses when compared to the numbers from revenue.
For example, last quarter, they lost $213 million while bringing in $354 million, or an 18% loss on top of their revenue. This doesn’t seem to change anytime soon as they now have a huge user base when compared to other rivals like DoorDash or Postmates.
Is Uber Still Profitable?
Uber is not currently profitable, as the company has consistently reported losses since it was founded in 2009.
In the company’s most recent earnings report, Uber reported a net loss of $1.1 billion in the third quarter of 2020. Still, the company’s revenue springs as it is driven by strong growth in the food business and delivery.
Additionally, Uber has been investing heavily in new technologies, such as autonomous vehicles and electric bikes and scooters, which could help the company achieve profitability in the future.
How Far Has Uber Eats Gone So Far?
It’s worth noting that Uber’s financial performance is also affected by its ongoing legal and regulatory battles, as well as the ongoing COVID-19 pandemic, which has significantly impacted the company’s ride-hailing business.
In summary, Uber is still not profitable, but the company’s revenue has continued to grow, and the company has plans to continue expanding its delivery services and investing in modern technology, which will help achieve greater profits in the near future.
Are there Any Disadvantages of Uber Eats?
One can actually agree to this as the food delivery service has some setbacks that cannot be curbed. They are:
1. Control of Quality: This is because there may be a low drive for consistency when it comes to the quality of food and even delivery service.
2. Time of Delivery: Delay may occur due to the additional time while the rider waits at the local restaurant before heading on. Also, delivery may take longer in busy areas and during surge pricing.
Sadly, these factors seem inevitable, but it is in Uber Eats’ best interest to always serve their customers better.
A means to curb this has been created, and it is Uber Eats Customer Support, with an aim to bridge the gap between the company and customers where complaints can be calmly stated and looked into.
Bottom Line
Sadly, Uber Eats is running on losses, especially from the most recent income reports about the $232 million debit during the third quarter in the year 2020.
In 2019, the company had an overall revenue of about $2.2 billion, which was an estimated 74% growth from the previous year. Regarding the closing moments, there was a statement from Dara Khosrowshahi, the CEO of Uber, where he expressed hope.
This further opened ears to the fact that the company was drifting its focus to doing better when it comes to delivery and technology for a better customer experience.
Coming from the eyes of a stock broker, it’s safe to say that the company will not back out but rather continue to grow every form of revenue so it can counter any more chances of losses in the nearest feature.