Uber beats Q1 earnings expectations powered by delivery business growth

Uber (UBER) reported its Q1 2021 earnings after the closing bell on Wednesday, beating analysts' expectations

Here are the most important numbers Wall Street is looking for from the report versus how the ride-hailing company performed in the same quarter last year.

Gross bookings: $19.54 billion versus $18.07 billion expected

Ride gross bookings: $6.8 billion versus $6.6 billion expected

Delivery gross bookings: $12.5 billion versus $10.7 billion expected

Losses per share: $0.06 versus $0.37 expected

Uber’s earnings announcement follows the Labor Department’s decision on Wednesday to rescind a Trump-era rule that would have made it easier for companies to classify workers as independent contractors rather than full-time employees.

FILE - In this May 15, 2020 file photo, an Uber sign is displayed inside a car in Chicago.  Uber’s food delivery business brought in more money during the third quarter than its signature rides business. It was a sign of how much consumer behavior has changed, and how far the company has adapted, since the pandemic struck.  (AP Photo/Nam Y. Huh, File)
Uber has had to make major changes to its company throughout the pandemic, including leaning on its Eats business. (AP Photo/Nam Y. Huh, File) (ASSOCIATED PRESS)

Uber and its fellow gig economy firms have argued that they can’t treat workers as full-time employees without significantly increasing prices, and have fought such moves across the globe.

In California alone, Uber, rival Lyft (LYFT), and DoorDash (DASH) spent more than $200 million to generate support for Proposition 22, a ballot measure that exempted them from a law that would have required them to treat workers as employees rather than contractors.

Uber and Lyft were also hit particularly hard by pandemic induced lockdowns, as closed bars, restaurants, and other forms of entertainment meant fewer people needing rides. To offset its losses, Uber invested heavily in its Eats platform, which surged as consumers sought takeout options.

The company has also been pushing heavily into delivery with acquisitions of alcohol delivery service Drizly, convenience store delivery service Gopuff, and Postmates. And on Wednesday, the company announced it would begin providing same-day delivery services for Walgreens.

Those moves have helped offset the steep drop in ridership, and should provide Uber with an ongoing boost as lockdowns continue to ease.

On Tuesday, Lyft beat expectations when it reported its own earnings, with Lyft co-founder and president John Zimmer telling Yahoo Finance that “recovery is clear.”

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