As the pandemic ground its ride-hail business to a halt, Uber’s delivery service took on new importance. Now, it’s Uber’s biggest source of revenue.
Revenue from Eats reached $1.2 billion in the second quarter, double a year earlier, the company reported Thursday. Meanwhile, Uber’s Rides business revenue plummeted 67%, to $790 million. Similarly, gross bookings for Rides declined 73% over that period, while they grew 113% for Eats.
“Our delivery business alone is now as big as our Rides business was when I joined the company in 2017,” said CEO Dara Khosrowshahi on a call to discuss the results. “We’ve essentially built a second Uber in under three years.”
Overall, Uber lost $1.8 billion during the second quarter, adding to its long history of steep losses.
Contributing to the loss was nearly $400 million in restructuring costs. The company cut roughly 25% of its workforce, or 6,700 employees, as it grappled with pressure from the pandemic.
Uber’s revenue declined 29% in the second quarter, to $2.2 billion, compared to the same period last year. Last quarter, it lost a staggering $2.9 billion, posting revenue of $3.5 billion, a 14% increase from a year earlier.
Uber, which started as a ride-hailing service, has long dabbled in other categories, including meal deliveries with its Uber Eats service. But those efforts have accelerated in recent months.
In July, Uber further committed to the category when it announced a deal to buy the on-demand delivery startup and former Eats competitor, Postmates for $2.65 billion. The deal is expected to close in the first quarter of 2021.