It is fair to say that Uber’s business has been greatly challenged in the 2020 coronavirus pandemic. The company today reported its revenue details for the third quarter of 2020.
Although the business is still plagued by COVID-19, several points indicate that Uber is slowly rebounding after a difficult second quarter.
Not surprisingly, the total revenue of its “mobility” business unit fell sharply compared to a year ago, of which mobile revenue of $2.9 billion was down 53% year-on-year.
Consistent with this, booked travel fell by 35% year-on-year to 1.15 billion. Considering that we spend a lot more time at home compared to a year ago, this is not surprising.
However, as we stay at home, more and more people are ordering takeaway food, which is also reflected in Uber’s financial situation.
The total booking volume of its delivery department more than doubled, a year-on-year increase of 125% to US$1.5 billion.
The total revenue of all divisions of the company fell by 18% year-on-year-a substantial drop, but it is undeniable that Uber Eats avoided the increase in losses.
Broadly speaking, Uber’s total bookings fell in March, but it has been steadily picking up since then, which is another reason why the company remains optimistic about the future. But with the COVID-19 infection rate soaring across the United States again, it is absolutely difficult to say whether this recovery will continue.
Another point that Uber is favored this week is the passage of Proposal 22 in California, which allows Uber and other similar companies to continue to classify their drivers as contract workers instead of full-time employees.
Dara Khosrowshahi on Uber earnings call: “Going forward, you’ll see us more loudly advocating for new laws like prop 22”
— Kari Paul (@kari_paul) November 5, 2020
In a conference call with investors today, CEO Dana Khosrowshahi said that it will vigorously promote the enactment of similar legislation elsewhere. Given that Massachusetts passed a law similar to California, the law initially reclassified “gig workers” as full-time employees, so there is reason to believe that we will see similar changes to Proposition 22 in the future.