Uber Technologies Inc. posted a narrower annual loss on the back of its food-delivery business and aggressive cost cuts, even as the coronavirus pandemic crushed its core ride-hailing operations.
The San Francisco-based company on Wednesday reported a net loss of $6.76 billion for 2020, compared with a loss of $8.5 billion the year before. While widespread shelter-in-place orders crippled Uber’s rides business, food delivery thrived as the same health mandates kept people from going to restaurants. Revenue for the year declined 14% to $11.13 billion.
Uber overhauled its business during the health crisis, cutting about a quarter of its staff and shedding noncore businesses, among other moves, leading to $1 billion in savings on fixed expenses last year. Meanwhile, the company doubled down on delivery, buying small food-delivery rival Postmates Inc. last year and ferrying new items such as groceries and medicines.
Uber’s delivery bookings in the fourth quarter increased more than twofold from year-earlier levels. However, rides bookings halved. That downturn was broadly in line with ride-share rival Lyft Inc., whose fourth-quarter revenue declined 44%.
Overall, Uber’s fourth-quarter revenue fell 16% to $3.16 billion. The net loss for the period narrowed to $968 million, from $1.09 billion in the year-earlier quarter. The results narrowly missed Wall Street’s expectations.