Former Uber Eats Exec Emil Michael Praises Eats' Growth Story

Uber Technologies Inc's UBER food delivery business Uber Eats has grown to become roughly "the same size" as the company's core ride-hailing business, former Uber Senior Vice President Emil Michael told Fox Business.

What Happened: Uber's earnings report showed its mobility business accounted for $1.471 billion in revenue, while the delivery unit has grown over the years to reach $1.356 billion in revenue.

Uber's ability to diversify its business into delivery has paid off during the pandemic, especially compared to rival Lyft Inc LYFT that doesn't offer delivery, the executive said.

Related Link: Uber Technologies: Q4 Earnings Insights

Why It's Important: While the competitive environment in the delivery space continues to intensify, investors have reason to question if Uber's momentum can sustain itself. Michael noted that Uber was once the dominant player in the space, but has since fallen behind current leader DoorDash Inc DASH.

What's Next: Uber has since "made up some of the ground" in the U.S. under the leadership of Dara Khosrowshahi, Michael said. But in other key markets worldwide like Europe, Uber is still the dominant player.

"They got a lot of wood to chop in the U.S., but in ride-sharing, they still maintain a 70-30 lead in the U.S. against Lyft," he said. "So they can win in both parts of their business, but they have to focus."

(Photo: Uber Eats)