Uber had a bummer of a Q2 earnings call, with the ride logistics company reporting $3.17 billion in revenues but $5.2 billion in losses for the quarter. While the overall health of Uber is something we keep tabs on, The Spoon is more interested in its Uber Eats division, which generated $3.9 billion in gross bookings.
In Q2 2019, Uber Eats Monthly Active Platform Consumers (MAPCs) grew over 140% year-over-year. Over 40% of new Eats consumers had never used Uber’s platform before. Uber Eats restaurant selection continues to improve, reaching 320,000 restaurant partners at the end of Q2 2019. New delivery fees (service and small-basket fees) resulted in improved Adjusted Net Revenue take rates quarter-over-quarter.
Uber CEO Dara Khosrowshahi provided this good news/bad news quote to CNBC during the call:
“The Eats business is still a business that carries very significant growth going forward and that continues to attract a lot of capital. Not just in the US, but all over the world. With the eats business there’s a lot of capital chasing a lot of growth and we’re the leader on a global basis. So, I don’t expect that business to be profitable in the next year or year after frankly.”
Despite that somewhat dour note, Uber Eats has had a busy third quarter so far. While the food delivery business lost its exclusive partnership with McDonald’s, it went national with Starbucks delivery, is experimenting with a dine-in feature, testing out an uber subscription service, launched a restaurant accelerator program in London, and partnered with OpenTable for delivery.
Now we’ll have to see if any of these moves deliver better results for the company.