Uber Eats Bookings Up By 113% as Uber Ride-Sharing Platform Revenues Drop By 67%, Lyft Revenues Drop by 61%

Second quarter earnings for ride-sharing companies Uber and Lyft paint an insightful picture of just how much consumer and business dynamics have changed. According to the statistics analyzed and published by Stock Apps, gross bookings for Uber Eats have grown by 113% YoY. At the same time, revenue from Uber Eats bookings has grown 103% YoY.

On the other hand, Uber ride-sharing platform’s gross bookings have declined by 73% while its revenue has declined 67% YoY. In view of this situation, the company has reported an overall drop of 29% in revenue. The total revenue for the period is $2.2 billion, down from $3.17 billion for the same period the previous year.

The total Uber Eats revenue for the second quarter of 2020 was $1.2 billion, a considerable increase from $595 million in 2019. Moreover, the monthly active users of Uber Eats for the quarter reported an increase of 7%.

However, even though the Uber Eats business is doing more gross dollars in terms of transaction volume, the ride-hailing platform offers a higher take rate. Uber Eats y adjusted net revenue was $885 million while its ride-sharing platform adjusted net revenue was $793 million.

Overall though, the dismal performance of the mobility side of things has led to a net loss of $1.8 billion for the period.

Lyft Records $280M Loss for Q2 2020

The situation is more or less similar for Lyft, which recorded its worst yet performance since it went public. However, unlike Uber Technologies, Lyft lacks diversity as it does not offer any additional services. Furthermore, Lyft has its focus predominantly on the United States and Canadian markets. Its fortunes are therefore linked to the ability of the country to keep the virus in check and lift restrictions on movement.

For the second quarter of 2020, the San Francisco-based firm reported a revenue decline of 61%. Total revenue for the period was $339 million and the loss amounted to $280 million. According to Bloomberg, the number of customers who took a ride during the second quarter of 2020 reduced by 60%.

2020 has been tough on Lyft as the company’s share price has yet to gain traction. By August 10, 2020, its share price was down at around $30.75. On February 11, the price had hit a high of $53.94, but in the market plunge that took place in mid-March, it plummeted to a low of $16.05. In early June, it had a slight recovery to $40.98 and then slowed down once again.

During the first quarter of 2020 though, the situation was a lot brighter as it reported a 23% increase on revenue YoY, closing the quarter at $955.7 million. However, pandemic pains took a toll as it announced a 70% drop in rides in May 2020, compared to the same time last year.

Uber Eats Bookings Hit $6.96B, Twice Its Ride-Sharing Platform Bookings

The Uber Eats business of Uber Technology business is now bigger than its ride-sharing platform. Gross bookings for its ride-sharing app during the second quarter were worth slightly over $3 billion. On the other hand, gross bookings for Uber Eats reached $6.96 billion in Q2 2020.

A Forrester survey puts some perspective on this. 17% of the respondents said that as a result of the pandemic, they ordered restaurant delivery for the first time. Additionally, 21% said they bought groceries online for the first time. This would explain why as Edison Trends pointed out, overall sales in the food delivery industry have increased 51% since early March.

Since March 2019, Uber has been the second largest company in food delivery behind rival DoorDash. Following its recent $2.65 billion acquisition of Postmates, it expects to increase its market share. Postmates had been the fourth largest food delivery company and after the deal was announced, Uber stock rose 7%. The acquisition should see its market shares surpass 30%.

DoorDash seems to have pulled ahead of the pack during COVID season according to research data from Edison Trends. For the period between January and May 2020, its sales were up 110% and market share grew from 42% to 47%. On the other hand, market shares of Uber Eats, GrubHub and Postmates dropped.

Interestingly, over 42% of restaurants in the US added delivery when dining rooms closed down in March according to Rewards Network research. 31% of them said they planned to keep investing in the service. As a testament to this, at the end of July, GrubHub said 25,000 new restaurants had come on board, making its total userbase at around 225,000.