Uber’s food delivery arm leads company’s resurgence

Uber has announced its latest quarterly report which shows the company is starting to bounce back from its pandemic losses.

The company posted $3.93 billion in total revenues, beating analysts expectations, however its increased investment in its food delivery arm has lead the resurgence.

Uber Eats recorded $1.9 billion in total revenue, while its mobility arm posted $1.6 billion.

There has been significant investment in the food delivery arm over the last 12 months as the pandemic halted growth in its mobility division, as the company acquired Postmates and alcohol delivery service Drizly in a bid to combat its rivals.

The company’s mobility arm had suffered during the pandemic as people stayed inside however it is starting to bounce back, seeing a 105 per cent increase in the amount of rides during the most recent quarter, compared to the same time last year.

READ MORE: 4-day work week would boost high street retail sales by £58bn say analysts

However the number of total rides is still around 10 per cent down on the number recorded two years ago before the pandemic.

Uber is also starting to pay its drivers more as it attempts to get more of them back driving as governments are putting pressure on companies to boost the global economy.

The company last week announced it would offer language courses to drivers through a partnership with Rosetta Stone for free.

The good news is that 90 per cent of inactive drivers said they would come back to work eventually while 60 per cent said they would come back within the next month in polls according to Khosrowshahi.

“Our platform is getting stronger each quarter, with consumers who engage with both Mobility and Delivery now generating nearly half of our total company gross bookings,” Uber chief executive Dara Khosrowshahi.

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