Uber reports earnings Wednesday, and investors will find out just how drastically bookings were hit by pandemic lockdowns.
The COVID-19 pandemic disrupted Uber Technologies Inc.’s core ride-hailing business, with travel coming to a standstill and would-be riders sheltering in place, leading to thousands of layoffs, but there is a possible bright side for Uber: food delivery.
White said that while ride-hailing is slow at the moment, at least the food-delivery business is “maintaining some sort of engagement with drivers and riders.” Customers use Uber Eats to order delivery from restaurants, many of which aren’t allowed to accommodate diners, especially indoors. Uber Eats and Postmates together comprise a 37% market share in food delivery in the U.S., according to Edison Trends. DoorDash retains the biggest industry share at 45%.
In the Bay Area — home to Uber and Postmates — cities that have capped delivery commissions include San Francisco, Oakland, Berkeley and Fremont. Other big cities such as Los Angeles and New York have done the same. The caps range from 15% to 20%. Aside from the pandemic, Uber faces myriad regulatory issues. Most notably in the United States, the company is battling a new California law over worker classification of its drivers. The state is suing the company and its main rival Lyft Inc. LYFT, -0.47% over their non-compliance with Assembly Bill 5, which calls for them to classify their drivers as employees instead of independent contractors.
Stock movement: Uber shares are up 4.9% this year through Monday’s trading session, while the S&P 500 index SPX, +0.71% has gained 2%.
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