After the pandemic, things are looking up again for the ride-hailing service provider Uber.
(Photo: Reuters)
San Francisco, New York The duel between the US car service providers is tough. But one company is emerging as the clear winner in 2021, according to the latest business figures: Uber.
The San Francisco-based company benefited from the improvement in the corona situation in 2021, as the business figures published on Wednesday evening show. At the same time, the food delivery business – “Uber Eats” – developed strongly.
Uber’s fourth-quarter revenue grew 83 percent year-on-year to $5.8 billion. Uber thus exceeded analysts’ expectations. Uber CEO Dara Khosrowshahi said the market was beginning to recover from the omicron wave of the virus pandemic.
In the fourth quarter, Uber reported net income of $892 million, thanks in part to a valuation gain on investments. In the same quarter last year, there was a net loss of $968 million.
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Business area number one, the ride-hailing agency, reported back: its sales rose by 55 percent to $2.3 billion. The division threw off an adjusted profit of $575 million – almost double what it was a year ago. During the pandemic, the previous Uber core business collapsed due to increased home office and restrictions on going out. Uber now booked 1.77 billion trips, 23 percent more than in the same quarter last year.
Business area number two, the food delivery service, pushed the group figures particularly well: Here sales rose to 2.4 billion dollars, an increase of 78 percent compared to the same period last year. Pleasing: “Uber Eats” was in the black for the first time. The bottom line was adjusted earnings of $25 million, up from a loss of $145 million a year earlier.
The figures were well received on the New York Stock Exchange: Uber shares rose more than six percent in after-hours trading.
Strategy problem at Lyft
The situation is worse for competitor Lyft, which presented its figures on Tuesday. Uber and Lyft have divided the US market: in 2021, Lyft handled almost a third of all driving services, Uber more than two thirds. Other competitors play practically no role.
But Uber could outrun Lyft. Lyft reported fewer passengers for the fourth quarter than analysts had expected. The remaining riders took in more because there was a total lack of riders. But the virus pandemic continued to haunt Lyft. “We have great momentum, but we still have a lot more work to do and we have yet to get through one final bend in the Omicron pandemic,” said Lyft co-founder John Zimmer.
In the final quarter, Lyft sales rose 70 percent year-on-year to $970 million. The bottom line, however, was a net loss of $258 million (2020: minus $458 million). And analysts had expected better numbers.
Uber’s strategic advantage of having relied on food delivery early on is becoming increasingly evident. “Uber Eats” set the pace in the pandemic, while Lyft’s core business remains vulnerable ridesharing.
The lack of a second pillar is also reflected in the analysts’ recommendations. While 89 percent of the experts surveyed by Bloomberg recommend buying Uber, only 69 percent do so with Lyft.
However, one problem drives both companies: the lack of drivers. It ensures that customers have to wait longer and pay more for journeys. The outlook for 2022 therefore remained below forecast for both Uber and Lyft. “Investors want to see balance,” said DA Davidson analyst Tom White. “You can’t keep raising prices forever without anticipating an impact on rider demand and volume.”
With agency material
More: After court ruling: Uber faces uncertainty about the status of drivers in California