Inflation-Hammered Food Delivery Expected to Drag Uber's Earnings

Uber's food delivery business will be under pressure from the recent inflation in the United States when it posts its quarterly earnings.

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According to Reuters, the company is expected to report second-quarter revenues of $7.39 Billion, which is an 88.2% increase over the second quarter 2021.

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Uber's global travel has seen a rise and offices have reopened recently. However, this could be impacted by a slowdown in food-delivery operations.

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Nikhil Devnani, a Bernstein analyst, said that investors have dismissed food delivery as the next drop in demand as consumers tighten their budgets.

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He also noted the fate British food delivery company Deliveroo, who cut its revenue forecast for July due to rising living costs.

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Rohit Kulkarni, analyst at MKM Partners, said that ride-sharing is on the rebound this year but could be under pressure by a shortage of drivers due to high gas prices.

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PYMNTS reported on the decline in digital ordering earlier this year in the study "ConnectedEconomy(tm) Monthly Report: 3 Ways Consumers Are Dealing With Inflation."

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The study revealed that 46% of consumers ordered restaurant reservations online in March. This is a decrease of 2% over the previous month

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and 7% less than January, when COVID-19 numbers surged due to the omicron variant. This could have led to an increase in the month's COVID-19 numbers.

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Uber last month announced a new grocery experience that allows customers to place orders online for groceries.

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