Within three trading days after the results were disclosed, Ubers share price plummeted by more than 10%, and the total market value evaporated by more than 6.22 billion US dollars (about 43.2 billion yuan).
Whats more, Ubers active users are falling precipitously. According to the financial report, in the second quarter of 2020, the number of monthly active platform consumers was only 55 million, down 44% year on year.
Not only Uber, but other unicorns of the sharing economy in the United States have not been able to resist the beating of the epidemic. Aibiying, LYFT, Wework and others are all in losses and layoffs The dilemma.
The unicorn aura of the once prosperous sharing economy is fading.
Uber: burning money, no hope of profit
Uber, which was established in 2009, has never been profitable... Operating expenses are expected to increase significantly in the foreseeable future and may not be profitable. This is a warning in Ubers prospectus.
It is a prophecy that Uber has not been able to turn losses since it was listed. The maximum loss in 2019 was $9 billion, and the cumulative operating loss since 2018 was as high as 99.9 billion yuan. Among them, the only quarterly profit (in the first quarter of 2018) was due to the non recurrent income of $2.8 billion from the taxi business in Southeast Asia and Russia.
It is obvious that Uber, which has been established for 11 years, has never been profitable in its operation. Even if the impact of the epidemic is excluded, Uber can not see the hope of making profits.
However, under the epidemic situation, the travel business has become a severe disaster area, and the orders have further shrunk. In the second quarter of 2020, only US $3.05 billion, a year-on-year decrease of 73%, and the total number of trips was 737 million, a year-on-year decrease of 56%.
After the core business was hit hard, Ubers revenue scale declined for the first time in the second quarter of 2020, with a decline rate of 29%.
The epidemic situation is serious, travel and commuting are blocked, and the demand for taxi service is sharply reduced. However, takeout has become a just need of the American people.
As a result, Ubers takeout business grew rapidly during the outbreak, with ubereats food distribution revenue of $6.96 billion, up 113% year-on-year, exceeding previous expectations.
In terms of data, the epidemic in 2020 will literally turn the worlds largest car sharing Unicorn into a takeout enterprise. According to the financial report, in the second quarter of 2020, Ubers take out business accounted for 68%, which became the business with the highest contribution to revenue. In the second quarter of 2019, this proportion was only 21%, while the revenue share of travel business dropped from 77% to 30%.
It is clear that Uber intends to make takeout a new growth point.
Uber CEO kosrosasi said that now Ubers takeout business has surpassed taxi service, and we have created a second Uber internally.
Uber, under the epidemic situation, has completely changed. It is no longer a travel giant, but more like a delivery unicorn.
Burning 110 billion Uber, relying on takeout?
Although Ubers takeout business is booming, it is still in the shadow of losses. According to the financial report, the takeout revenue in the second quarter of 2020 is $6.96 billion, and the profit before interest and tax is - 232 million US dollars.
According to the financial report, Ubers takeout business is to borrow the companys advantages of online car hailing, and cut into the take out track with the heavy asset mode of platform + distribution (similar to meituan), which was very expensive at the initial stage.
As we all know, the takeout platform relies heavily on commission income, the high cost of riders and the single profit model, which is also the hard injury of Ubers takeout.
Take meituan as an example. In 2019, the total cost of meituans takeaway riders is 41.04 billion yuan. Based on the number of 8.72 billion takeout transactions, each delivery needs to pay 4.71 yuan to the rider. In the same period, meituan received a commission income of 7 yuan from each delivery order, leaving only 1.3 yuan of gross profit after deducting the cost of riders.
If we consider the expenses of website / APP maintenance, customer service, depreciation and amortization, payment and processing, assuming that 45% of the total cost is shared, the net profit of each meituan takeout is only 0.3 yuan.
If you are careless, you will lose money.
Therefore, it is difficult for Ubers takeout business to achieve large-scale profit and make up for the huge loss of taxi service without using the takeout platform to find cash cows.
Compared with the takeaway business, Ubers taxi service loss is the biggest problem.
Since its establishment in 2009, Uber has accumulated a total financing amount of US $24.7 billion, while by the end of the second quarter of 2020, the balance of cash and cash equivalents on its book is only $8.1 billion. If the income of business operation and other influencing factors are not considered, Uber has burned nearly $18 billion (about RMB 115 billion) in the past 11 years, and there is still no sign of profit.
According to Ubers announcement, the main reason for the continuous loss of taxi service is the high cost, especially the drivers subsidy is still the main cost expenditure. At present, online car Hailing all over the world are facing the loss caused by human cost.
Take LYFT, another listed online car Hailing platform, as an example. Its average operating loss rate per unit is as high as 45%. If it is replaced by electric vehicles, the fuel consumption will be reduced, and the loss rate will only drop by 10%. The main reason is still the high labor cost.
Sharing economy under the epidemic situation, no future?
In the wave of mobile Internet, sharing economy is perhaps one of the hottest concepts.
Every Internet enterprise is constantly pursuing the number of users, the number of orders and the revenue, but leaving the net profit behind. The institutions in the primary market have continuously given blood to these enterprises with continuous losses, creating a series of behemoths:
The essence of sharing is to integrate offline idle human and material resources to provide users with short-term needs. In other words, the sharing economy is a network middleman, matching buyers and sellers online to match demand and supply.
In 2020, this sudden epidemic will tear the veil of sharing economy to pieces. From car sharing to office sharing, and then to homestay sharing, there is a cliff like decline in the number of orders, and a large number of employees withdraw from these industries temporarily or permanently.
Among them, all the star unicorns such as airbnb, Uber, Wework and LYFT are all suffering from losses and layoffs
The company plans to lay off nearly 1900 employees, accounting for about 25% of the total number of employees, and reduce the salary of senior executives by 50%. It is estimated that the revenue in 2020 will be less than 50% of that in 2019. Uber will lay off about 3700 employees, accounting for 14% of the companys total number; Wework, a sharing office giant, will carry out a new round of layoffs at the end of May to cope with the companys huge losses; LYFT announced that it would cut more than 900 jobs, resulting in a significant drop in passenger traffic volume of more than 75% Under the once-in-a-century epidemic, investors in the sharing economy are rethinking: can the business model of the sharing economy be sustainable? Is it possible for human society to completely change the way of activities and no longer share them in future social, life and work? Source: Panoramic finance editor: Wang Xiaowu_ NF
The company plans to lay off nearly 1900 employees, accounting for about 25% of the total number of employees, and reduce the salary of senior executives by 50%. It is estimated that the revenue in 2020 will be less than 50% of that in 2019.
Uber will cut about 3700 jobs, or 14% of the companys total;
Under the once-in-a-century epidemic, investors in the sharing economy are rethinking: can the business model of the sharing economy be sustainable? Is it possible for human society to completely change the way of activities and no longer share them in future social, life and work?