Overall, Uber’s revenue dropped 29% to $2.24 billion. Its net loss narrowed to $1.8 billion from $5.2 billion in the year-ago second quarter, when expenses related to stock-based compensation were much higher.

Profit margins in the food-delivery business can be particularly thin, and because there are more parties involved in food delivery versus ride-hailing, Uber takes a smaller percentage of the gross bookings for itself. Earnings before interest, taxes, depreciation, and amortization in Uber’s mobility business was $50 million, down $457 million year-over-year. For the delivery business, adjusted EBITDA was $54 million better than a year ago, but still negative at -$232 million.

While more people have shifted to food delivery, it’s still a minority, says Forrester Research analyst Sucharita Kodali. In a recent Forrester survey, 17% of respondents said they ordered restaurant delivery for the first time as a result of the Covid-19 pandemic, and 21% of people said they purchased groceries online for the first time as a result of the pandemic.

At the same time, the US delivery market has become increasingly saturated. Uber is competing with various food players including GrubHub and DoorDash, and, now having expanded into groceries and essentials, Amazon and grocery stores.

Khosrowshahi indicated Uber is looking at the delivery business as a long-term bet. While the surge in demand is no doubt tied to this year’s lockdowns, “I believe we’re witnessing a much more profound shift in consumer behavior that will last well beyond the pandemic,” Khosrowshahi said.

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