Uber's food delivery business carries company through lockdown disruptions

UberEats had a stronger result in what has been a tough period of the company. Photo / Getty Images

Uber's food delivery business brought in more money during the third quarter than its signature rides business, showing just how much consumer behaviour has changed — and how far the company has adapted — since the pandemic struck.

The San Francisco-based ride-hailing company lost US$1.09 billion (NZ$1.61 billion) in the third quarter as many customers continued to stay out of shared vehicles.

Uber brought in US$3.13 billion in revenue, down 18 per cent from the same time last year. Its mobility business, which includes ride-hailing, scooters and bikes, brought in US$1.37 billion during the quarter, down 53 per cent from the same time last year. Despite the decline, the rides business showed improvement from the second quarter, when it brought in just US$790 million.

Its Eats business generated US$1.45 billion in revenue, up 125 per cent from a year ago as restaurants relied on Uber for delivery and the trend of people ordering in instead of dining out during the pandemic continued.

Uber's food delivery business also brought in more revenue than its rides business in the second quarter, when demand for rides was even lower due to the pandemic.

"Despite an uneven pandemic response and broader economic uncertainty, our global scope, diversification, and the team's tireless execution delivered steadily improving results," said Dara Khosrowshahi, Uber CEO, in a prepared statement.

The quarterly figures were released a day after Uber scored a major victory in California. Voters there passed Proposition 22, granting Uber, Lyft, Doordash and others an exception to a law that sought to classify their drivers as employees, an expense that analysts thought would have pummeled Uber's business in California.

- Associated Press