Uber bore a loss of $6.8 billion in the year 2020 which is lesser than its loss in the year 2019 which was $8.5 billion. As per the recommendation of the CEO, for “profitable growth”, Uber got rid of employees and sold off costly ventures.
The stock-based compensation expenses of Uber were $1.1 billion in 2019 whereas it went down to $236 million in 2020 which was included in the $968 million loss in the last three months of 2020.
The CEO of Uber, Nelson Chai gave a positive message by saying Uber remains “well on track to achieving our profitability goals in 2021.” Uber has experienced a decline in its revenue because of the effect of the current pandemic on the Rides business. It has declined 16% as compared to the same period in 2019 with total revenue of $3.2 billion for the last quarter of 2020.
The food delivery business of Uber called Eats has gained an increase of 224% in revenue that amounts to be $1.4 billion in the fourth quarter of 2020 as compared to the same period a year before. Uber has bought its food delivery competitor Postmates in an all-stock deal for $2.65 billion.
It also has plans for an alcohol delivery startup called Drizly. The capacity to acquire these came by dropping its overambitious projects like its flying taxi operation and the autonomous vehicle research division.
Just like every other business Uber also felt the pressure of the pandemic on its business. It terminated the employment of 25% of its total staff. But the company did better in sales than in the previous year. It’s good news. Uber is planning to up its growth game in 2021.