Covid-19 has successfully paralyzed the entire world. Its devastating effects are still jostling the country. Even the series of ‘Unlocking’ India in steps, is not being of much help to the country’s economy. But even though Covid-19 is paralyzing certain businesses, it is also helping a handful others in flourishing their business. For example, in the current scenario, Uber Rides take Covid-19 hit but food-delivery business doubles.
Uber Technologies Inc.
Uber Technologies Inc. deals with travel as well as food delivery business. On one hand, Uber Rides take Covid-19 hit but food-delivery business doubles. That is, Uber Eats has been easily aiding the company’s development when Uber Rides is not being of much help.
In the second quarter of 2020, the series of lockdowns were partially lifted. The government allowed restaurants to open, but only for food-delivery business. Thus, companies like Swiggy, Zomato and Uber Eats flourished once again. Many people even resumed their jobs and started using Uber Rides to get to their job destinations. But the danger of being infected with Covid-19 was still looming large. Thus, many people feared using public transportation, and even Uber Rides on the chance of possible infections. Thus, the company only recovered partially after the lockdown was lifted in the country.
Uber Rides
Uber Rides is still cutting down its cost in an attempt to achieve its profit goals by the end of 2021. However, Uber Rides has undergone a loss in earnings before interest, taxes, depreciation and amortization of $837 million in Q2 2020. As compared to last year, bookings were down by 75%. The company mentioned that it has faced a dip of $1.8 billion from April to June. and its Q2 revenue fell by 29%.
Uber Eats
Due to greater demands for food delivery, Uber Eats experienced an unexpected surge in revenue. Their gross bookings nearly doubled and the revenue earned was double than last that of last year. Uber Eats recorded $232 million adjusted EBITDA loss in Q2 2020. They also expect Q3 losses to be roughly the same. Uber Eats also underwent a cost-cutting to improve margins and have more customers and restaurants relying on them.
It is quite fortunate of Uber that they had a food-delivery business on the part. This way, even when Uber Rides take a hit but food-delivery business doubles, Uber is all not losses. Thus, all their losses in the transportation section have been covered up by the food-delivery business. If it had not been for that, Uber might have been one of the causalities of Covid-19.