Uber (UBER) 5 Aug 212021 Q2 Earnings call transcript

Good day, and thank you for standing by, and welcome to the Uber Q2 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Balaji Krishnamurthy, Head of Investor Relations. ahead. go Please,

Thank to Operator. joining today, us Thank Technologies you second welcome Uber presentation. quarter and you, for XXXX earnings

call Uber's have Nelson today, Khosrowshahi; the CFO, Chai. CEO, and On Dara we

use both During today's call, GAAP non-GAAP financial and measures. we

including filings non-GAAP non-GAAP included each posted which with press the Additional the of slides supplemental to are reconciliation is measures, SEC, regarding GAAP a investor.uber.com. disclosures and in release, these to measures in our of

to statements subject Certain are call such unaudited identified and and this intend As and statements by may. expect, a reminder, presentation be in these numbers are may forward-looking can terms change. on this believe, statements. as Such be

and update as required forward-looking we Actual reliance You should except differ undue any make not undertake today, law. results statements. place any obligation do forward-looking we not forward-looking statements to materially on statements, by may from these

the materially report today December made to SEC statements, uncertainties and more XX-K please when cause XXXX actual risks annual the our For results described the available. year to for filings release Form XX, that in may and in about with most from forward-looking information other well as press recent differ on the we factors refer ended as issued

the remarks today, will we questions. remarks Following we prepared investor will prepared website, to our and publish relations in open call the

otherwise currency unless quarter second year-over-year For basis, are all a of growth rates reflect the constant discussion, this remainder growth and on noted.

XXXX addition July trends, be trends. For to year-over-year with will comparisons in we providing July

on that business it QX supplemental let number for detailed to our performance. press me Dara. for our With financial you recent of provide QX that, review a review ask and decks to context earnings we additional disclosure over hand Lastly, slides release

at real to our On made courier else driver the and aggressively, the Matching in and We've places, right times, re-ignite we marketplace at Thanks, we anyone and we lean key market to and our at what supply price the and in with done that market, we've so the progress. balancing last the world. right than by is growth. you, would and said right Balaji. call demand, better do

by As an everything phone additional folks active year-on-year couriers XXX,XXX the and XX% In gained marketing seen monthly to to our in the ended investments, up we US increased incentives, driver-focused digital from drivers in Postmates couriers February to of a from organically of from attractive active more old-fashioned number calls quarter a we July, to in particular, Mobility haven't good and migration. the result drivers the US our while, refreshed June. in XXX,XXX

nearly improvements drivers also time drive and process several by XX%. quarter We signing that deliver, onboarding cut new product led courier made operational up to to a over the we and onboarding both to and of

to earner the that our incentives continue a month; drivers road. XX% drivers of XX% they up driving September. intend And within expect back We the back hit half of is that's come they start been increasingly get inactive the see news us on as of year second in to XX% again from momentum and us to June, to have our April. taper short-term early The in strong to good stride. by want drivers told In told we able

to demand times We Houston Atlanta, with comfort nearly markets, metrics York, like Phoenix. also Miami, But Francisco San levels our Angeles, major prices and cities and Dallas, to in marketplace supply surge above are Los continues to several in wait beginning New normalcy and to and normal revert times outpace levels. see in back wait remain and

Super to completely make for disciplinary, quality, and our a our and than Rosetta to unique to re-engagement from with rolling Stone is term our easier earn or offer free drivers and doubling to long experience Earner breadth in faster programs ever our earner From app tuition the learning ASU, globally. out personalized unique language free it is the onboarding earnings targeted and down we campaigns, in investment can App couriers to company. like cross flow of initiative Our and opportunities fundamental, on safely, redesigning depth

work to on have do We to our Delta our variant. the world. to continued and do Mobility and work to of in business incredible June platform markets of stronger of lot a see remains are for are I variants. to Delivery attractive businesses acknowledge together. GB rewarding to the from want the also it's recovering, ensure and the impact emerging the effectiveness the vaccines, Uber us most July, the we despite Thanks on-demand in new growth Where

any Bookings total Gross done Paris over July we scenario, more plus As a London we manage specifics, the our than XX% over Mobility week, of to through has recovery. are as have New and as in our made full days. XXXX, in York ability confidence City, just last but last Nelson have XXX nearly will have higher

ambition Our anywhere to used people get Freight, getting to more with doing via Eats first and Whether they Rides, are Uber help consumers, came and Uber. increasingly to or merchants is go anything. companies alike

the driving - During others. lines bases each and our our businesses exciting product one how words, cross-pollination other others. do our business more in provide of importantly, strength hedge, is in innovation between pandemic, brand customer strengthen multiple shown can the a but, the our more But provide can hedge in a how we've business is against

growing were groceries, Already, New Uber's over on million more to, US that have proactive In the now our spend Rides That's are obvious are way UK acquisition contribution in Mobility's for growing We've suburbs to of a time, with the our we consumers the markets, many consumer Delivery into first-time items, and consumers, last than month the Over alcohol acquired year. the first You offerings convenience consumers engage riders contribute and Uber. Mobility. than delivery more Notably, our riders Uber smaller X and efforts is XX% this these from, be opportunity. as first-time Eats app consumers launched apps QX, much restaurant now benefit increasingly convert one is business. New -- business for expect ordering over consumers to driving and of Eats-first existing XX% like that Verticals towns, marketing the Delivery Verticals twice aware sometimes we in our even because is over rapidly with and US consumers in offering. through acting free especially more of fully engine addressed through well increasingly less this Delivery before our platform. acquired as is may by is What riders. each

and to our by footprint this having the in XXX beginning to powered grocery membership roll last are of the broadly out the than pillar We next US, growth be this few Uber. program. weeks, more Cornershop in to is Underpinning for of doubled expect cities all our

Uber roughly Bookings. engage ago roll to in XX% now now half out who XX% and year total globally. our began company Consumers It of a Just drives with nearly account GBs both we Mobility Gross regularly US, Delivery Delivery Pass of earnest. the and in for

synergies And We're long the our our grow. on-demand and monthly Pass delivery to is the consumers than XXX,XXX of remains runway Uber position platform for global outside in cross-platform merchants seeing increased see a China, active we also merchants other platform. no-brainer, and leadership with particular, largest on these of for continues adoption. benefits businesses. a more For

is the category additive, XX and traffic offset in-store at drive X with in cost. lockdowns. comes merchants many But during that the that businesses back. as delivery US even Ads two in-store now helped traffic cities Merchants small markets, increasingly are We're Uber reopen, proud and our have offering these to Postmates, a Delivery as clear of are We embraced demand in positions amplification Cornershop leader loss reasonable our the demand number UK. top Eats, significant of discovering

run-rate this original million was end at but run-rate surpass now with year revenues. least to million and Our expect Ads that to goal goal with we in revenue, XXXX $XXX exit $XXX of

be powering grocery has freight Notably, freight of Beyond shippers. the and successfully logistics Freight. market roughly middle-mile consumer a come is Uber staples customers decision-makers have to Freight both of first- logistics brokers with as XX% last-mile shipper manage well there freight of innovative shippers. We digital increasingly end-to-end is technology, brokerage one of our the delivery, opportunity partner surveyed disrupted as and largest last-mile loads from for China. truck is XX% globally believe full now XX% excluding preferred and with the our almost last-mile volumes large needs. and Uber shipping,

the With the the to first end-to-end Transplace, we potential power could the platform create digital to goods all the the movement consumer. logistics one acquisition production point of of way day that the from pending of have

We as a all that shippers X EBITDA consumers, sustainable momentum, hungry Delta has over to and the and future the we of local While Uber become the and part footprint improving the the XX forward, none it's gaining can to and see potential of the and earners, expand of of next profitability years macro continue the and or us me team of millions On. to our variant but six going habits our next services to merchants, predict growth months, in this world. excited Uber effects the path over see daily bigger we

to over Nelson. Now,

Thanks, Dara.

of we still from are seeing virus. the As Dara course mentioned, impacts

with billion XX% up Australia Gross XX% However, was we impacted run-rate run-rate recovered growing Gross Gross were basis reopened. July. vs. July lockdowns. recovered LatAm Taiwan APAC vs. steady Japan or vs. nearly a were up XXXX, month-over-month at growing Delivery a X% month-over-month Kong and July Canada while and trips vs. EMEA month-over-month, July month-over-month. new July July, a XXXX. XXXX. ongoing on at but billion July, from Delivery XXXX, recovered continued Gross progress, has June Bookings relatively XXXX, XX% up Bookings and Mobility were up remained Zealand, Gross New total good with Bookings Mobility Gross Bookings India, March, Bookings even X% and make X% XXX% a cities to and July bag Hong as on fully US by mixed $XX $XX to with year-over-year while vs. and in and X% up since up balance, in were were Bookings with over GB

with major modest York, where and We we are Paris as witnessing like very outlier an seen healthy Sydney, trendlines in markets London, pullback. have New some

Next, a word M&A. on

to leverage four aim both huge than business Delivery our compound the divestitures. hesitate has always the growth we past M&A grown do have Our rate organic be and Indeed, including appropriate, a the same XXX% amount where and we over to business a will our at At not organic. of has organically acquisitions growth years. majority vast momentum, greater of time,

along last acquisitions. Just rationalization with we over $X by base as cost have cost several our several assets we year improve divested attractive billion, made that helped also

largest in in East Postmates Middle same our us the instance, into number our margin one establish For the second us in has allowing category at operating helped time. while our position turning Careem of to LA, establish in US, our targets. well has led markets, market Delivery Mobility to above profitable some acquisition leadership acquisition execute a organically of long-term to recently, of the markets most the NYC More

now synergies largely process, targets have the to at laid out and acquisition. our integration the on completed We of deliver expect time the

$X Turning companies, and our to billion, past publicly Grab, stakes including for to at months equity portfolio of end Aurora, companies traded over sheet, of eventful few portfolio $XX Uber's equity our balance was several share. nearly At as Zomato, took or Uber carried investment QX, have the steps our the Didi, per portfolio, Joby. been become

previously these latter financial, the stakes with we others strategic Didi noted, example more of us. clearest and are being the have more for of are As some

as is post-IPO will long restrictions, As our we value these we reasonable as market for reflecting lockup positions, some them. evaluate the from emerge a of

an positions but those have to maximizing ensure said As we aim with Uber flexibility run sufficient to don't investment liquidity that shareholders. have intend of we the previously, have value we for the we to firm, our and maintain

than was we not Finally, drivers delivering experience as was in that reenergize have okay emphasized granted, were outlook. it taken markets marketplace returned turning supply. that demand We opened the magical spring we clear to up. as all consumer would We in the not to US faster proactively for invest very the and our Mobility

drivers QX. company achieve available As Adjusted expected, At our in these efforts adjusted the total on good we time, profitability supply been our have dynamics the investors are this The has alternatives. we earning growing also levers impacted told it. news to year. margins same marketplace is remain improving, EBITDA quarterly platform We other to than and driver EBITDA that are and committed our more

accelerate benefiting XX% on improving, the are continue month QX Uber we margins. our even grew month over over Our July gross month, the driver that's investment bookings in month, additions on to grow in already flywheel. improved right, incentives In back to over as from our XX% new US in and pulled and our margins July,

to investments half. As in show back our taper, we expect leverage Mobility strong the

context, like In margin markets Miami, and in For revenue. the targets, and to July. take without major ranging supply pre-COVID rate to reverted France, Uber, where XX% investments nearly from Australia, Houston, was significant in in recovering Mobility our UAE has from long-term Phoenix in EBITDA Atlanta, XX% QX US, Canada, of exceeded Dallas, organically levels our

bottom We to line business expect its delivery while scale. growing to our at continue improve

we improve business Canada was outside QX, our the Delivery Our the position. breaking in leaned just and of category even while to US US shy consciously into

footprint. and lower QX, global We leverage deliver Postmates and start incentive delivering network targets spend through additional in our improving our efficiencies expect across to on synergy

We balance which our this to quarter the with trends. fluctuations. year quarterly around will continue on and With grow guidance transparency on investment our the pandemic, we around expect to right return investors overly believe and goals, without continue used for annual we from overheads. to being Pre-COVID, of expected near-term emerging to is provides our provide manage to the time EBITDA, manage its Freight focused we Gross and some the adjusted Bookings near-term business to providing our guidance we levels corporate believe

Bookings expect context, guidance a this company between better there QX, world, that achieve to $XXX Gross we billion reasonable a we And total be $XX EBITDA QX $XX and company uncertainty However, be profitability. will company than to QX we EBITDA result, and million. of is the and loss as total still to for With the in billion amount of adjusted for call. provide for expect total

let's that, for it open up with So question.

is question [Operator Thank Sandler first from Instructions] Your Ross Barclays. you. from

is open. line Your

the on guys. color Hey, Thanks for guidance. the

$XXX business. on $XXX about $XXX so. above thoughts the question million or for million like million EBITDA your XQ a Just looks to Rides swing doing It is to

mentioned incentives should pre-COVID how EBITDA of You overall take in are So But rate? there system-wide? we a And how level Rides about think we driver think take what few lot. that do baked then run rates about the rate? into cities the levels. Thanks in a XQ back into

So, you we're heard margins a us my growth, talk Ross, seeing update comments, did about mentioned what prepared as improving. in July. we And only the you are in give heard some not but

where if were they in and just margins So, rate stay July. take

So, our just to and then hold we on, continue we grow volume as expect. we

within comfortably that about ranges be will the We we're talking there.

that sustainable what increased on that's seeing this, the heard knew the incentives, to Uber already in platform when back we're So, between by stat we again we July I June. and think did and as XX% that growth. pulled build we my on US And versus we we drivers wanted you long-term because pullback new profitability

the of comments. my you operating and in our functionally saw As wasn't coming out you correctly pandemic, efficiently heard or marketplace

we're our get to side supply that the of marketplace seeing on healthy today. benefits invested we the So, again and

on pull So, incentives. able we to are back

just and are talking we're that run simple of getting to we the that July you on which hopefully where investor mean saw, of I some chart and the on guidance is which you're on terms to. we achieve look that you able provide forward should a guide bottom why where out at about, If there's put help QX in be in kind the to you also line ranges in deck, range that

next Our question?

Justin America. question next Your from Bank from is Post of

line open. is Your

Thanks. Great.

profitability Uber in explain the think little you be investment it might a US. second on the versus a different levels be the Lyft might dynamics why confusion basically in bit I at there little Could us have maybe if can may could bigger you -- a then Delivery And organic quarter? you give the update pivot? on of acquisitions. if an some And maybe you or why ex-Postmates

organically did in Just Thank how quarter? you. you the

quarter-on-quarter, when acquisition number we balance Listen, as the speak were comparable least drive direct I on relates Sure. against a think the compare but that active coming levels aggressive Yes. are Lyft, our drivers the Lyft, platform can't numbers and we on basis. for month-on-month, we our drivers to the directly super it heard monthly new at of we higher onto from numbers

to continuing our and seeing see think we're invested investment been and very able compare if aggressively not I relates not and as that in to as we've We is of in momentum courier revenue growth to numbers we're privy pull So, early back you margins July QX up their momentum that it and again, Lyft have early that incentives numbers. a to we come and positive over the strengthening. and if significantly driver result

to confidence, QX lot and and QX stead of QX So terms rate, in us it investment terms we -- very And that take right And QX. relates us in of investment. margins, puts in was it of think as made relates that we it EBITDA. good a the very, revenue gives QX the as to

As far of the as majority Eats' goes, growth is organic. Eats vast

So, year-on-year broadly, seeing XX% global basis basis. active eaters we on a a about up on monthly are

We basis. are of of basket on a frequency sizes orders seeing well. yearly as up seeing XX% about We're

happy one Eats value growth able of build organic of drive to well acquisition basis. XX% really the to position being with to rates and and is So, terms are obviously up it's LA. And We're think eaters, and about size they'll for all run QX QX. it's we for one growth. orders And to eater continue about York positive running as active the organic really in on as number and in about Uber year-on-year of those it's synergy about We're in it's about per New QX. over getting and continuing the a for audience Postmates that number a most well, positive but basket

Great. Thanks, Dara.

welcome. You're

Next question?

from question Brian Nowak is Morgan next from Your Stanley.

line open. Your is

I questions. my taking have two. for Thanks Great.

about we the so the can a and hopefully, of pay point XXXX Can bring education. more on And about Pass, vaccination we drivers promotion drivers. as when But and those access you us investment on color in was board marketing on big you how I to volumes. the do and like and first course are the background the investment these one think feel much not on better burden? talking incentives. that understand on Uber sort is of sort And think costs the help so Just of how appreciate little of in The attention secondly bit, to around the the big quarter? then a year? I throughout about you're the checks costs just

it had than you've areas you adoption So, was of continues. your in the bit that mind more recovery think a driving Pass, areas Uber adoption drive to success some in hanging still as low for riders and more Thanks. rise fruit

Yes.

terms active Mobility is incentives. just spend in wait back a earnings our an really normal. are was cetera to service heaviest and will those $XX place wait because right not the driver to over cities drivers, And driver we considered tips that putting and top we get driver to It's et as general in marketplace at of spend our down majority to into we drivers surge wanted the we the including well. as action for there And in as front the think levels of saw quickly a metrics vast to in XX actually incentive far lean And in that cities, And spend down. southern and of acquisition all was of We are bunch times the moving and spend really in see about QX. times So, it have relates of very take direction. cities acquisition acquisition dollars making as healthy. we get and

those place the where those back. is, put news -- able we're we're pull investments now So, to a good in

relates in volume there If gives And which million a EBITDA, about numbers. these add look growth numbers million QX will lot take based in on $XXX we're in rate at our it theoretical numbers. of actual about add as you running July improvements positive will $XXX July EBITDA, on us confidence to

positive that from thought we're and investments were standpoint, the I think it I investments on So, ledger big, the so side speak. worth of to the were well

retention up Pass goes, what on is with months Uber most the optimization we're more us product retention factor some important what et basis. are the our rate asked for you six as cetera, what is rate far a after us the than cohorts is, that building As rate. And month-on-month the for now seeing for retention is, XX%

back that products It's growth organic. cetera, we perfected et the and the than and member going the benefit So business see going who and really is driven about bookings now for be use member basis. lean be users both heard product we to coming a Mobility our we into savings global vast a of of you've Mobility the account front our more can in riders growth, to both drivers us the of Delivery talk big putting how have now gross on XX% majority is

product can million the advantage think So, but we'll amount what's customers of a to XXX in we gas significant there. traction and great of them organic that now We we're really going we of a acquisition, on get that that have and the front step retention. monthly take active terms of in put platform

Great. Thanks, Dara.

Sure.

Next question, please.

Mark next is question ISI. Your Mahaney from from

open. line Your is

COVID from do and absolutely us on lapsed and the numbers or of drive drivers, drivers Those that crisis drivers, tell up in drivers June Thanks. the July. the come year-over-year those you February couple can of you you XXX,XXX platform those who during drivers back? to mentioned how versus a new about didn't XX% many two Question to are have -- people

come of safety whether the COVID go cetera drivers rates We are vaccination as who seeing not majority are up, driven, of why in et coming can. they've we past one resurrecting number Mark. concerns because they we back. the to platform Yes, driven resurrecting what reason vaccines it's And or the as the had drivers call drivers back

resurrections are reach scale So, database and can the coming terms because real momentum and of size our those we business back. we of the into getting in

So, I signs think positive. quite the all are of

regulatory outlook? state And the on comments Any Massachusetts? please. question, follow-up quick of particularly -- the updated one on comments And

our state love incredibly employment, model, of Massachusetts, California we our think Prop answer it, we prefer Massachusetts, IC+ of be full-time benefits, to is we're with independent think contractor I see Yes. is reason listen, they right in based drivers And take driver proven I majority on why which IC+ has legislative of popular no drivers. the vast employment. with we'll Massachusetts right, The absolutely had support. get with over -- the think quite different. When drivers you that But because voters are we to voters confident. in California if a California, for vote be and to we're going in any prefer outcome Massachusetts. can there voted We what happened in XX

Okay. Thank you.

Sure.

question? Next

Doug is Your P. question next from J. Anmuth from Morgan.

Your is line open.

few second Thanks by to of ago, questions. that supply, quarter? the is on third return of on I fourth the And expecting the and Delivery quarter, Thanks. in third for your then wanted kind tapering that is -- expectation in to would the to taking normal think overall of you've a clarify kind driver was profit still end of here profitability, my wanted in that there. the I you're I that things your what mentioned? kind just just in quarter months clarify trajectory given

Yes.

fourth but my that improve. confident you is even was the total guidance how again continue in EBITDA the we total profitability well the of if I as and includes our the on that -- put of out pretty Mobility our all then again, expect and it's business, EBITDA on we'll guidance we On why to terms in as fact third we'll quarter we're doing just prepared -- of continues profitability QX. we're progress make comments company company it, improvement And and which and quarter, aspects for business Delivery to

supplemental think Delivery away an our if the business profitability. slides is I look see But outside you EBITDA of US also inch that the you in from

mentioned confident So, returning. executing did overall theory again effectively it profitability. then quite we're stance this we're on something about and And in supply lastly, our is driver in a you

our that quarter. And in invested It's in and audit, so, in which I QX. remarks think forward numbers is. adding And as very for the earn. heavily both suggest not driver drivers We're heard the rates also seeing those say just the drivers yeah, high is in that July, that pulled comments really the the rest question even what in July is where is back achieve incentives would I would I would they improvements talked would take incentives on less are that have is just money more driving prepared are I we it add to to We're to the we us a short-term point think on we in and on lean operational benefit made do I that and definitely the on of of you earnings improving. and we've are But underlie tech to way about relates and and I again flexible a what obviously we made. have margins ability based

So, someone for usually when we're on now driver want to bring person. capability is to the example, a testing drive

as have deliver quickly the to as We that checks, have we live process mean, very, to drivers looks less in good like campaigns anything will state. that heavy heavy spend July that a you the allowed can very and and all ground both us state move incentive drivers to and at just couriers move year. adding well. shape. of we Mobility period have checks then allowed careful do do good we to adding well. August driving the that so to background much the really regulatory July, et in cetera, be we and business and a And we very on onboard as of very food not We the can has each are has for and states fastest them pace CRM drivers We the that to for over on-boarding if and September other or and driving spend from speak be we in technology I flows to the that the

Thank Great. That's you. helpful.

Sure.

question Jefferies. next is Brent Thill from Your from

open. is line Your

we how to think for just Thank And could as should mentioned it you comment if I that? now you. on there relates Eats had Any just that thinking Dara the know the about the pricing the on And you last a trends terms half? slowdown you on color second business, are frequency, call frequency. in How of perhaps as you is forward? about look

with first, relates actually a higher our start And because it the have to of seen second using delivery I'll it's material business. not customers Yes. as just our we decrease Pass. think which frequency is in portion we Delivery of are the

be they could as an offset So, task six-month we non-members membership when trials and they number that members that rides especially cohort and that orders because and paid the they always relative has retention. thought goes per but sure materially. have of become The offset between eater and if of XX% a free up rider per Pass we into then and graduate weren't riders

well, outdo? Let's So, the is positive of as that say, question to cities negative the us for going of open momentum up. membership

so do as per so we orders And out, per think there'll continue we eater orders the to terms that order case is very per great. far that that drive stayed membership. which a and of as were in be has eater people going consistent tailwind eater But

and trends pricing early in in as we August. seeing the are July As second far half,

it's as real still up year-on-year, we more easing normalized pricing pace It's is a which get a We are the the but the think like for looks we a positive of situation, price increases ease. as marketplace. seeing supply great into

you. Thank Great.

You're welcome.

Mathivanan Wolfe from Research. Deepak question Your is next from

Your line open. is

taking guys. Hey, Thanks questions. the for

a Just ones. of couple

our of are the Eats on the reinvesting the non-food below rights trends And underlying business high of on of right on rate. other incremental follow-up core margins this just food categories? what business? revenue given into margins, -- second of a are the EBITDA first business then much these now the trends how some take and you terms question, profitability So, on in And the

to low. In addition US of markets during is impact also grow, recover European the second incentives driver quarter with you our saw somewhat

decline color it you XXX some predominantly and So, on point kind is take the rate from basis give by geographical quantifying US, can of sequential regions?

Yes.

to our to X% it New X% to the year, far growing pretty as GB's it's by Verticals, of that for Grocery delivery accounts Grocery EBITDA Delivery overall amount goes, the we relates and Grocery can and rates, healthy well. at end spending fair we including et we think are and get as Verticals a profitability As the about cetera. New of but as

really customers. So, yes, percentage is but Delivery story our customers for parts into us the a delivery business, of are repeat larger leading those we're of as the

Our the down the more couriers we trip deliveries courier drive get marketplace, we three marketplace incentives of can into that we we have batch to per and more we marketplace as have the the the other be to as that marketing to -- the Generally, to restaurants have comes cost the reduces we're U.S., kind put spend frequency two in becomes efficient down. spend the cetera. more to trip markets batch and per in et because the on marketplace, the into add marketplace, can able they or time the at that

growing in continue of combination to invest the get business. the time efficiencies trip aggressively well as into cost allow and grocery business. margins So, at improving and investing But get we that the us same we that our marketing our Delivery per to efficiencies

and the rate you you're APAC take In rates, expecting are we if question on any right. America, will. Latin take not your Regarding changes,

and and in and in Europe the was Canada there order build much well was So, to some the get US drivers as of help in actually investment back supply.

it. Got

so much. you Thank Okay.

Sure.

from is question John Blackledge from next Cowen. Your

is open. line Your

questions. Two Thanks. Great.

then how different on in the several you. And the of in other lines. has on second same Thank Mobility at US US, And is also in goal that then talk market? versus the Could kind First scale Delta-variant. given on trends trends you geos? players along the across And Grocery Delivery, and in and in? delivery Uber question competitors weeks the spiked areas what's where the recent differentiating about Delta-variant other

Yes.

I think to the as relates business. it have we where to power see Delta-variant of end shutdowns, we significant the relates it changes as trends, seen

essentially supplemental if you changes And don't the the be me and and where to shut the that a slight on volumes if there for talked that and a pretty underlying we where shutdowns, growth delivery the in tend we know we example to of see aren't in may happen example, business we take basis. well compare business to the Australia Sydney people XXXX behavior hard and of as about. of tell still in Mobility we year-on-year it's see deck, in behavior over. at go net non-material obviously be really there to out see Certainly, But some the up it's hedge a changes want we hit. you takes look Delivery side that's even for opposite So, the where down, But City hedge our significantly see Mobility

Delta trends forward. we July can we're and far June So, to relative to we're certainly no pretty but trends one so what's the encouraging, good. going with are predict pretty happen going seeing the hedged, But were that that saw

have and listen matching audience essentially ride, technology a differentiating pricing have cetera. of grocery think Three-quarters going actually of elements Delivery the of stack. what's So, quarters a our were based players what on three late building it the we the We game, one is the be built platform, ultimately in and and we relates the is it what et differentiator build the that were that marketplace the that Uber As Delivery we right? up brand, the the to to of in technology to business. to Uber elements we're I latest routing that delivery, delivering we

that elements Our coding. engineers common are our

marketplace capabilities cost data points engineers we teams So, higher are to because we regulatory single anyone of We our the into us and over counts of overheads our incentives we competitors. in much At have translates global else. have all that We're the understand that low. bigger and routing, just have have than algorithms and data marketing train a much we build common on get to anyone elements. to larger greater which than got versus personalized that allow else. essentially engine working is competitors, able matching, more our datasets points our value time, ops customers We higher same with lifetime the frequency is on acquisition the or lighter It have lower, overheads market. the every than is ground customer

customer So, in the we really tech out the start think And competitor. built and lower lower in to acquisition, top off We're has We overheads Eats capabilities, US strong value, grocery. higher eight number of internationally Instacart markets. XX that's of great cost at now one greater the lifetime a differentiator.

be to grocer merchant I think base we're going build in the to audience in else out practical. the anyone We're going on our build and lean US, the in a we're But up than has. to audience it's going bigger Rides US. and Eats to

asset So, great have. to we a think that's

Thank you.

You're welcome.

Lee is James from Mizuho. of Your question next

is open. line Your

my be the America us you with with any Thanks. I in seeing bodies Didi Any competition on guys update and you question. issues update you give an Great. Thanks taking their Are operations? would for international within South them Can on perspective the regulatory their given from know EMEA. competing China? helpful? pullback

So, recently very and quickly. as happened know, you it's

I and market-by-market, as we could if question actually quarter but we surrounding So, nothing we're some America. compete we really have them I'd particularly We Latin second strong city-by-city material parts with anything actually attach Those do broader into seen a that July well had changes. to haven't seen continue and will. fluctuations duty. nothing Obviously, the you in anything material, of to what haven't to call of kinds and

Next question, please.

RBC from from is question Brad Next Capital Markets. Erickson

open. Your line is

taking Hi, the questions. there. Thanks for

talk for going level to here? driver one the investment taper keep on the just here the competitor confidence Just U.S., levels in about those I fairly you your the continue to Can you main high more think can future. incentives. foreseeable that they're

just I look how profit you we are then second also for Thanks. contemplated just profit built-in target? regarding just conservative And target into at one so there guess is, your that the the guide and the us expectations QX can I'm remind what's what's wondering advertising? as And

from recovery. coming run standpoint on from much So, there rate isn't a more advertising. Mobility It's really

the and they of think guidance now of this end listen my then Mobility today is increase a few reiterated recovery their July our QX at really I notice come in did call rates the to and center but is variability based to on the that we on as in around time heard around and really just the expected really our gave recovery. take about and as getting quarter. this it commentary and commentary, I maintaining as you increasing if we back. And spend in if June have the you, that so, you our continue where both from results some incentive this you again lifted business it's on some if side. were between increase margins And in It's point the We the did or will, already. volume particularly of the strong times July, in And our not quite to

we predict feel and happening pretty in it's going on obviously, can't now So, the they marketplace but future, again, where are we what's the good about today investing.

you invested and get Dara marketplace. As build we often mentioned, the of our benefits early And to back the do flywheel.

lot in comments about You did we XX% had new spending a spent drivers July, or incrementalized incentive. my a incremental hear in how more we're really without

and just benefits comfortable pretty feel what we're we marketplaces it. from getting we're and listed again, And going flywheel going our about today. to on comment the going we not I'm got the for so do. not to But

of add able incentives at earnings onto high. of lower testing all that terms cost other and would CRM the the efficiency flow, point is which think is terms onboarding done we pull, learning in our a one in that the out, work in don't, but because of being incentives drivers being improvements drivers We've lever have greater was to factor the able our resurrected ones I that I also the in a made And really terms fastest sending Brad, in of we're that hold to that of drivers. resulting bunch in could campaigns are incremental we to

based would our spend base on I The add versus more we we see Lyft our can again is went that what other factor aggressively. spend, that to

if putting it's it's we they're of a off can lower think in aggressive of probably So, that off incentives, say taper when And base. we I base. more a

factor much really in may a working, pull of the be we our but acquisition that and July, strong. biggest listen now not and courier have acquisition machine there difference, is, back and incentives drive we look the really, So,

we're gives how smarter of are and the about giving we're that's a better. into you and capabilities And getting confidence our getting spending and lot all us we're QX. going So, QX facts is what

Thanks. Great.

Sure.

Yruma KeyBanc Edward Here next Capital from from your Markets. question is

Your line open. is

continue the app. guess usage for ask you in incremental Hey, reward. of Ride to on about innovate taking I on a side be I importantly have to the you driving East wanted side, terms a how both I use getting consumer to the Thanks the program. either know question. question sides or guys. guys to successful been more

Yes.

on the half. a is per past average and increases on basis number monthly So, Rides XX% post of the customer on orders customer food trips than pre-past, more

that Delivery slides if at our total our included as a bookings cross-platform see and the coming look and UK of percentage in now more US close is We the well. pretty to Mobility gross users supplemental crossover you from and incrementality significant. So, lot is XX% the

the members able So, the is Pass number the to path us strong the really retention working on in path factor sticky most is really It's gives lean rate. product that important be got. that the that confidence we a to and and and XX% of grow that's

a Got customer from other it. versus And perspective? do platform our platforms keep to loyal you that think your price shopping the that helps

orders that the Prime. belief priced. certainly not invest It's service the in listen, this per our it's there month. purely savings path really is customer well-worn certainly We It's a but shows in up Amazon

offer benefits, upside structurally other there. than we value benefits Pass of Pass the the now Pass our news can good interactions. player is The and I because structurally is Delivery because anything the grocery the of of And just think inventing that type our after players touched out talked out of we're benefits, than frequency of any can for here. see the from bunch because any a higher not structurally other just more us high-frequency of Ride there

our Pass structurally a of business upside different our and terms place of just our retention is in it the think we any versus the So, from competitors.

you. Thank Great.

You're welcome.

DA White of Your Davidson. next is Tom question from

is open. line Your

my for guys taking question. Thanks Great.

we're of quarter comment to you guess after could would grocery thinking and long-term investing kind when maybe talking to about businesses like versus very you're I'm and hoping see those Just How you're I opportunities public think really your other on near-term I large categories. catered growing some fourth you the and in Delivery investors? EBITDA specifically, maybe profitable. you equity expectation and profitable should, about staying whether

as So, we forward growing, EBITDA in the that will continue into we to Tom continue talk our sustainable move when they'll QX, is profitability XXXX. and expectation be and getting about

So, quarter other we the of new if we But healthy recognize some we'll back along about believe one this have invest approach ahead we in fact those other areas that verticals think the things did, of to reinvest in. enough you up and the like we our invested marketplace.

go line EBITDA our coverage is from business our as That's we towards to our move can margins important myself profitability. and as continue healthy business get sustainably to So, company Have grow we back. Dara well. and and our for profitable given for pretty we the growing and bottom build that just

mathematically. just Tom, Hey,

$XX can billion of that factor a to XXXX our Mobility bunch other already would plus market. number back seeing percentage is levels. billion the is a bookings of and be above rate business at of XX% via margins Mobility XXX% a a gross of as $XX At point run markets COVID The XX% a is we're and I

growth on of earnings kind power our our Delivery $X with business are Mobility X% markets that gross really, it's today. billion have today bookings power earning is the a today. So, we of business,

business billion. that of another is power earnings the So, $X.X

Our run-rate a earning overheads, it's, basis. call it $X billion on

of absolutely vehicles, to allows just is invest got is and going the our a new a us I invest high can to think go, very, to is this us where the very in verticals, et they And and race, for not increased it That invest membership Company do. profitability can tough business new It aggressively the we capacity margins to expect sharpen we're our in grocery, to us allows of rental, muscles. I'm So, earnings earnings cetera. of it. the we about, of of for But profitability. program and the we we this raise foreseeable growing because growing future. then tool, reserve, that because power power the of and invest prepared be cetera, significant and operating kind have the in This growing. this, allows And et in talked keep do we us businesses. to going to and scale that EBITDA And profitable our way is kind goal. to COVID And

Thank you.

You're welcome.

from Advisors. is question from Fox next Fox Your Steven

Your open line is

afternoon. has could in thanks, investment category profit. being you it the aggressive when like on was a as expansion just still in your seems follow be return US, you Hi, the good a practical about expansion I while well one better category on that particular, considering of protecting couple and up could wondering as comments if comment

you. longer categories term on the groceries, thoughts you think the to as coming next year. in how also of in Drizly acquisition Thank other any just So but not invest

frequent people we making and built organically, as up business use Freight there the fast on I built cases. our close frequent, we well. up built and is just fast that we business liquor very, using on against right not Mobility of our the want we've Grocery look, they're Delivery to terms that's late long big term think fast, the platform in to up were made Uber theories Drizly engineers product putting right Delivery are of also that built, bunch we grocery we're Uber they They another cover I Eats point Yeah, we very a a great this use in want and game, cases the people engineering acquisition, that built but

have have using ML to fraud dataset the time I'll characteristics than have So of anyone right will essentially the promote that one against algorithms, the cross we running targeted bigger are so apps have service person same the going pricing payment other of to engines at all the family inches right to same the to They the routing use identity. can. them else we engines

is the well. and that we same play this a grocery we've times bunch run that do if can a very, other confident for of we're very just So as and categories

that. to bookings, These of Delivery said. Thanks. want clarify, Great. you I X% X% And bookings, new to total to clear just or categories on booking of company

booking. Delivery

very Thanks much.

from Oppenheimer. is Jason Helfstein from question Next

open. Your is line

Thanks.

how would unemployment for I if your of could Xrd headache Any thinking thoughts two, outlook, and get about how number Thanks. benefits many? closing that stock you the one ones, just, quarter think been quick Just that are two SoftBank's are change in position kind resolved. extended, your has

all, on the based is going benefits manage But in and in our will of really we environment made the happen good strides you it. what really right as current to first with know of extent is terms current we've we so just the think to guidance Well, in now are, plans place.

of changes don't folks So do terms see hard no, coming in it's there. more benefits comment benefits But back in expire. for SoftBank extended not. we that's see do to an on of of to will, you upside, when if benefit any irrespective SoftBank the drive We or of terms get me

going given there's relationship lots stuff some of regarding China. in We holdings, them, with what of investor, have an read you good doing they're they About their particularly what's on

they're for advice I on how they us really and with of so. trade, call to to fine whatever we're is going it much again think already. But I they go what going do, again doing think done don't but and they're

Thanks.

Your from next question is from Bernstein. Nikhil Devnani

is open. line Your

taking question. for may. couple I my thanks if Hi, A

any competitors you you're seen again the market secondly, to regions. where see improve. dimension users markets way invested older these Uber in of you've and First in supply reactivating. the new gains. Thank adding in And how you've you. then many to or driver are alternatives terms aggressively share of that Could users just either altogether Follow those or

it's, actually in region of call has I say quite has or other what or slightly with we again it's call investment The position marketplaces. Mobility it, pandemic factors it a there would category got, it and of competitive gaining it's, to between of coming QX category terms supply are or question doing terms drivers different Yes, market the I in where team to we is in share, and is bringing our people ever and again. was draw is. so our on conclusion back. actually Just what major that the our nature in whether it the nothing the every either between back just given is it's been executing can't well, it stable our it, -- a you the of businesses very marketplaces them market do improved healthy and -- is

your what second question, sorry, was So it. I'm I missed

worries. No

in Uber app are to any users? are on way just of the altogether, users is users dimension, how to old question new fee how reactivating these Second many many growth, just

database majority has, got growth driver so we resurrection, the tends user from and come the can that campaigns. both reach to into think database I Yes, any of we database our company with essentially that we that into new and when again, CRM reach growth deepest

So it's a very, very drivers. cheap back those resurrecting bring to

area itself, seeing the new mixing And that The and don't there essentially we're Eats growth is most better, the active we in the the business business actually do momentum throwing other active but is always so new customers, the the it's customers can then three essentially essentially all use of we initiatives have to significant second in is then rides all and channel to rides and in listen, order positive and as Eats on have now product. we certainly that platform third three that

question. more one for time have we Operator,

you. Got it. Thank

Sure.

Let's last. take the

thank last you. Your

from Your from last question Squali Youssef is Truist Securities.

Your open. line is

savings Rides have federal Eats not. that unemployment quarters one recently you're much. you driver pre-COVID cetera. a by and states you're et the long-term ended corner. Can both very you've those question margins have maybe much driven all supply situation pullback obviously thank arguably and in least Dara, Dara now revisit the one at literally you Great, speak driver benefits shared cost the supply can around you of that and How with versus incentives partially in and with maybe better that Nelson. much for seeing couple profitability, the for did maybe to financial Nelson across away the maybe And question that of then, I that. of with us much, business

if provide So areas just some that'd that, to the color great. investment, you grocery be obviously ex could ex-free on maybe still

go first. I'll So

is today. out our to get of We and pandemic we come it We any want. margins then are want updating that something long-term understand investors and through the that

as And for a you it used level. we percent and will math went I so that in GB's as X% can't again, through a after. But and not Delivery; guidepost. Mobility high Gross XX% shortly very and so we Dara that benefits of just think able Bookings of The we here for do to sure I and the recovery address a suggest on, had he good gave and guide you do the the what in is wanted been a look to is it on we've at starting through make going see creating and take formally, will we navigated our QX pandemic, of to which get particularly through in is equilibrium we as QX. terms marketplace, And

I incentives. Youssef, your driver Yes, on to think question

it's not have UI. don't we that throw additional that's which a ended to states things the does because be Delta-variant in the in states incentives incentives and/or so general improvements efficiency marketplace is leaning been UI There in been is in driver back is know the we and UI better. QX. broadly -- if broadly condition but pull now positive factor that QX, as healthier to machinery ended continue and acquire as even may incentives drivers than because kind has to have have able off able our into continues. And to we have much it us, driver seem July, coming factors. In back where in incentive in our we to much happened a of has pull as seems ended We states UI driving UI, balance broadly or well states driver have from the been resurrect other targeting just working in the positive where But new it

both. you thank Okay,

bet. You

can We up guys. wrap it

we us. team pretty some All relates right, lot from and work to signals thank And hard you of in everyone QX. the as QX, positive and it for see joining QX

So, thanks very much for joining us.

This you participating. concludes Thank call. today's conference for

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