Postmates Is Over $929.3 Million in the Hole

According to the Wall Street Journal, a Friday regulatory filing from SF-based Uber reveals that (also SF-based) food delivery app Postmates is running at a very, very steep loss. “Postmates had an accumulated deficit of $929.3 million as of June 30,” reporter Laura Forman notes, and in the second quarter of 2020 — yes, in those […]

Uber’s Postmates Acquisition Might not Deliver the Profitability Expected

According to Uber, Postmates saw a 125% increase in revenue during the period as sales jumped from $71 million to $160 million. And though that allowed it to slash its losses for the quarter, it indicates that even during a period of unprecedented consumer demand, Postmates is still a money-losing operation. That’s not much different from Grubhub (NYSE:GRUB), which […]

Uber and Lyft lose bid to delay worker reclassification order in California

Uber  and Lyft have lost their bid to delay a preliminary injunction that will force the two ride-hailing app companies to reclassify drivers as employees. A California superior court judge denied Thursday the companies request to delay the order from going into effect August 20. The decision sets the stage for a legal fight and will most […]

Lyft joins Uber in threatening to pull out of California over driver status

yft said it would shut down operations in California if forced to classify drivers as employees, the company’s executives said in an earnings call with investors on Wednesday. Lyft joins Uber in threatening to pull out of one of its most important US markets over the question of drivers’ employment status. At issue is the classification of […]

Uber’s California Shutdown Threat Won’t Impact Its Real Money Maker: Uber Eats

A fight over worker classification could prompt Uber to “shut down” in the state of California, company CEO Dara Khosrowshahi said in a TV appearance. That might sound like a big deal, but there’s an aspect to this threat worth noting: Uber has no plans to cease California operations of Uber Eats, a spokesperson confirms […]

Uber: Revisiting The Profitability Forecast, And It’s Only Worse

Summary Uber originally aimed to have a break-even in adjusted EBITDA by 2021, but the first two quarters have that figure down $181 million YoY. Rides bookings are down 73.88% since Q4 2019, while contribution to adjusted EBITDA is down 92%. Eats bookings have grown 122% YoY, but adjusted EBITDA for the segment is still […]

Uber shares drop 4% after it loses more money than expected in Q2

Image Credits: ANTHONY WALLACE Today after the bell, American ride-hailing giant Uber  released its second-quarter results. The company’s revenue fell compared to both the year-ago quarter (Q2 2019), and the sequentially preceding period (Q1 2020). Investors had anticipated Uber’s declines due to COVID-19, and the company had spent time earlier this year assuring the investing public that it had enough cash […]

Uber’s Biggest Business Is Officially Not Ride-Sharing

With the coronavirus pandemic keeping people at home and dampening demand for ride-sharing, Uber’s UBER +4.5% mainstay business transporting people has just taken a back seat to its younger sibling, Uber Eats.  Gross bookings in Uber’s mobility rides unit slumped 75% to $3.1 billion in the second quarter while in the delivery segment, previously known as Eats, saw gross […]

Instacart is suing Uber’s grocery delivery service Cornershop

(CNN Business)Instacart is now waging a legal battle with Uber’s Cornershop grocery service at a time when both companies are looking to capitalize on growing demand for food deliveries during the pandemic.On Thursday, Instacart filed a lawsuit against Cornershop, a new grocery delivery competitor in the US, over allegedly stealing thousands of its copyrighted and […]

‘Ruthlessly woke’: How Uber can redeem itself—and demolish Lyft

The first time I met Travis Kalanick, the cofounder and then CEO of Uber, he explained his vision in three blunt sentences: “One day, no one will own a car. Cars will drive themselves. And they’ll come to you at the push of a button.” Like any venture capitalist, I hear endless pitches from starry-eyed […]