Uber Eats made it known over an earnings call for Q1 2019 with analysts that the company’s take rate, or the commission/fee made from orders received by the company, reduced by 4 per cent on a year-on-year basis. The parent company, Uber, witnessed a decrease of 400 bps in the Adjusted Net Revenue calculated as a percentage of gross bookings due to Uber Eats’ low take rate in comparison to the ridesharing part of the business.
The take rate decreased from 12 per cent last year to 8 per cent this year. One of the main reasons for this is said to be the incentives given by the company to the drivers, restaurants, as well as consumers.
India is a key market for Uber and is one of the fastest growing countries with aggressive players such as Zomato and Swiggy. Uber has recorded a month-over-month growth of 50 per cent in India. It is currently present in 28 cities and 12,000 restaurants.
Uber witnessed a sharp increase in losses and in revenues from Q1 2018 to Q1 2019. The losses increased from $478 million to $1 billion, the revenue increased from $2.5 billion to $3.1 billion.
The company’s main cost drivers include $1 billion for marketing and sales, $434 million in operations and support, and $1.6 billion as cost of revenue.
Source: Financial Express