Are Investors Overlooking Uber's Potential Profit Problems?
With 68% of the rideshare market in the U.S., Uber (NYSE: UBER) has become a verb -- consumers now "Uber" to their destinations instead of taking a taxi. Uber's strong brand recognition and optionality to branch out into food and freight delivery could create long-term growth opportunities. Still, investors should consider some potential concerns before deciding to invest.
Uber was clearly adversely affected by the pandemic, when being in a vehicle with strangers became a health hazard. Uber's revenue from its mobility business fell 43% year over year in 2020 to $6.08 billion, but the impact was partially offset by a 179% surge in food delivery revenue to $3.9 billion. In all, Uber's 2020 revenue finished at $11.1 billion, down 14% year over year from 2019.
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Source Fool.com
