Uber's revenue from ride bookings in the second quarter plummeted 75% year over year as delivery revenues grew to make up a majority of the company's total income.
Gross bookings from Uber's mobility unit, which it previously referred to as "rides," were just over $3 billion in the quarter, compared with $12.2 billion in the second quarter of 2019. Delivery revenues, however, grew to nearly $7 billion during the quarter, more than double what they were a year prior.
As such, mobility revenue made up less than 30% of Uber's total revenues in the second quarter; in the second quarter of 2019, it accounted for 77.4% of total revenues. Delivery revenue, meanwhile, accounted for 68.1% of revenue in the second quarter, up from 21.4% in the second quarter of 2019.
While the growth in delivery bookings were not enough to offset the decline in rides, having both will be a "hugely valuable hedge" regardless of how the Covid-19 recovery progresses, Uber CEO Dara Khosrowshahi said in an earnings call.
"When travel restrictions lift, you know that mobility trips will rebound," he said. "If restrictions continue or need to be re-imposed, our delivery business will compensate."
Ride bookings have begun to recover in some markets, Khosrowshahi said. Booking trends in Europe are "encouraging," now down about 35% year over year, while gross bookings in Hong Kong and New Zealand "at times exceed pre-Covid highs," he said. Bookings in the U.S. range between 50% and 85% down year over year depending on the city, with New York showing the best signs of recovery, according to Khosrowshahi.
Uber reported a net loss of $1.8 billion for the second quarter, compared with a net loss of $5.2 billion in the second quarter of 2019. This year's net loss included $131 million in stock compensation expenses and $382 million related to restructuring charges.
Source: Business Travel News