Uber (UBER) 2 May 232023 Q1 Earnings call transcript

Good morning and welcome to Uber Technologies, Inc.’s Q1 2023 Earnings Conference Call. All participants are in a listen-only mode. After the speakers' presentation, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the call over to Balaji Krishnamurthy, Head of Investor Relations. you. Thank ahead. go Please

Thank first joining quarter operator. welcome today to Uber's XXXX you you, us for and Thank earnings presentation.

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

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

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

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

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

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

slides earnings prepared press already. published today. We quarterly our Investor remarks, to and Relations we you release, if to haven't documents you supplemental ask our And earlier website review those

questions to call opening remarks brief the following open will We Dara. from

Dara. let that, With hand to over it me

end XXX adjusted XX% delivered guidance, to margin Adjusted a accelerated gross year-on-year our of and is last we start bookings free and off XX% cash outpaced from EBITDA at record and incremental the million, gross million. of exceeding EBITDA XX% Balaji. Thanks, flow of Trips up growth quarter. to XX% high XXX XXXX, currency. of Uber strong in with constant bookings growth

two and delivered own exceeded the expectations Over years, investor our results plans. we’ve consistently have both that internal past

blackouts. scale to We're our path only every line we're by as to aware Even single working have income for P&L GAAP we that accelerate acutely increase entire expectations net platforms, item. continued performed well, our to optimizing

more Despite have flow platform doubt we’re growth. uncertainty, our in of been stronger, prospects leave expectations our excited growth. own higher, to scope I'm Uber profitable any ever to has macroeconomic and as to confident and never our best-of-breed never committed remain been cash for The than ambitions the exceptionally no

call With for open questions. the that, up let's

Thank Instructions] from Doug you. first JPMorgan. question comes Please Our ahead. [Operator from Anmuth go

Your line is open.

are operating in taking the upside think flat-to-down headcount cash Thanks just I do believe good what those questions. the experience ETAs for up income balance Uber? this improvements you talked and how million with Do XXX year. flow terms the onboarding, for And so the of about AI growth? is the other this ways talking you product structure much of in and free to EBITDA you envision you cost year, then GAAP on Dara, and anymore considerations about secondly, driving and AI, tighten some need you consumer

Yes, absolutely.

that we're guided as on look low-end well structure listen, then And at above of environment in think to for themselves basis. at expectations And growth, EBITDA we based to cost seeing. above manage XXX we far a goes, street EBITDA and expectations, as even you the million think what acceleration on the well delivered million the XXX again were. our [ph] quarter-on-quarter our speak cost that street forward above we guidance, I So, that bookings I dynamically results [strip] the the the our structure terms

discipline. structure So, of managing our we will be kind the ahead of very and opportunities to also a strong, cost with dose

go be our gaining the we're to year the as our flat year, and is as in balance category So, headcount we position, be expect that where of for going well. next we to to into starting even a point market down

above I that top EBITDA last the The delivered line So, to bottom quarter look our incremental for this EBITDA and well talking you're which incremental QX extraordinary the that going line. you And about remains was of is pretty we at X% talked our we're well that if terms see about. in guidance, was target leverage think the XX%, about XX%, we targets. which above

ability If of slow think in markets the good the to we Remember, we it and bad the we demonstrated things and don't markets. difficult to team of myself, We've this lot a materially, adjust is I been out through came business have slows rest company. weather a and expect down and Nelson down a will the COVID. not fair deliver of

other the muscles, we year today's took been. tech raising needed, raised hopefully of muscles was there. before reality alarms alarms everyone the remember capital just were last that didn't internally else discipline the we had and lot we about markets a so of action you'll And reactive to companies the So, like and be early P&L early have

while a of are and I to we're good that's innovating, building, we're bunch like, So think in. people position a restructuring, be

full far AI. AI goes, we are at As stack as looking

obviously as to to going think developer new would to that is actually I you I the earliest company to I effect productivity. most tell significant that it to and think people about AI is our be have have applications. to of want talk relates consumer is – lot a on that the going going of sexy, our kind

and faster of that this than innovate I essentially where anyone devs to terms tools Some the innovating is be across having else. that of platform. and that co-pilot of going the accelerate along super-devs we're build to, think And more to them. to innovation platform is our able kind co-pilot faster in with be more, will the allow are leverage seeing And

cost experiences can side, to you chatbots powering think agents. on the let's more lot I opposed a say live see as

increase of that chatbot be those voice can with complex, quality etcetera. human, AI the more is experiences can to think a more that I going with interactions be

power Tuesday. Pick delight. in surprise AI And where your me will those and are, like, of look can airport. is, home we you cars experiences. up you kinds And know who on to at of flight then I'm what etcetera, kind arriving XXX the we will and American

So, it's to will like, company. hopefully cost going thrilled. it's significantly And that for delight. go a from It's going we're the productivity return wonderful forward to ploy to

Dara. Thank you,

You bet.

Sandler Please comes Our Ross go from from ahead. next Barclays. question

line is open. Your

Hey, guys. Congrats. take Question on ride's the rate.

So, stable. you and is in that driver remarks both in were nicely prepared pretty category rider mentioned your the the and down position U.S. incentives

that rides So take the while looking And do a forward, is much kind that holding see continue improvement category of primary reducing you lot. more driver in the incentives, of how Thanks rate? to trend share? kind of room of

Yes.

marketplace we we are both make well. to and optimize against allocate we that want and try to the bottom overachieving on on as top we that sure mentioned, Dara out in line. as drive our growth to certainly, also put order But line the driving So guidance the

top now, working as in at you if as both line, things are bottom right well the line growth look quite so And well the quarter.

a so, combination would both. of I And it's say

in as bringing back. in last leaned terms year lot, we know drivers of you So, a

so a is from And the marketplace much more supply healthy perspective.

to because and say what the demand. the scale. put very continue cash at but again, work So, flow to periodically, free the drive And will we in delivering at more to continue our incentive company EBITDA that hard it's promising, is we grow that marketplace would balancing some I are to just trying we're not we

And up business on and the constant so, even saw bookings you XX% were higher. gross a our basis that mobility

is so, our for And go that's we growth about accelerating us, year, faster. next actually again, what's working. is marketplace as into exciting our actually trip And

to to drive continue scale back point us see toggle line and on overdeliver you'll again, the against company so our our commitments And at focal our the on two is on bottom. continuing top between the and really

demand rate that on to you the seasonal. of saw the is, be business perspective. very, take QX very add tends And increase mobility QX QX Ross, point from just busy to is part one to a

speak we we sure has as put so to take QX usually incentives, bit can our down to take increasing a more make elevated. lower So, is supply is balanced. rate. Therefore, effect incentives demand supply and is which that of money

went ignore you model, of take kind XX:X] merchant [ph]. the had, to rate the to QX kind take call [XX:X look, accounting you our of from, QX that adjustments If a we if it

[Indiscernible]. decrease sorry. So, there was – other a It way. the was slight

So is just rate most as is We're that of And of said. really, in and seasonal. element P&L increase slight nothing it's P&L. but take a entire one take rates, managing there's the for the

Yeah.

UK So, is the what Dara referencing March. business is change that happened model in the last

point And so seeing that was – – that. so, our of which with that you're the that overlap,

Thank you.

from next ahead. Brian from Nowak go Please comes question Stanley. Morgan Our

open. line Your is

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

of detail in about the you're slide healthy. second think The that And driving then course in the deck. frequency are first regions Thanks. seeing? used you're acceleration one, and which that driving talk the using cases rider acceleration? more about, strong that in behavior new, just hear the talking I'd the one business, cohort that over a user data of delivery, or products the about we new year? really the sort spend or And Can should us on products the about be cohort to are curious you how which you're this to appreciate little

Brian. Yeah,

coming on are came the ETAs mobility terms the they does are have down, convert and all to how down It and that's basis really we cohorts, the terms that from higher sessions from which of kind even in and many surge are does then frequency. strong, QX In of the of that conversion is Supplies more session. trip platform. work positive, the of in rates cohorts a resulting doing rider on on QX terms year-on-year healthy on do are that a in a of newer actually comes of amalgamation

and riders reliability. about quality at well time, use what use a of now being finding sure riders well. as Reserve has drop-off that products is Reserve with And ton is into Reserve of and the on-demand high to new case for reserve trips. availability that, average the the travel used combination a make are, it's router XX% they're, having you know, But of a also higher it's guaranteed fares used of using clearly system a we're guaranteed or now our an marketplace, same example. but as case we're bringing I the kind our choices that strong as the airport adding to is we're who marketplace talked is well. new much effect, a of innovating So,

of So, seeing. new frequency health are I think it's that and is driving that combination used the around innovation marketplace we a cases

growth of terms the as and that earlier year. we the had comps as in delivery, one the In acceleration drivers, far there just Omicron is

terms you because expect we of and delivery the then strong were a just in acceleration year. cohort look actually at of data if the quite So, the saw for of and again delivery healthy. growth lighter comps, we is balance March customer is February and other going bit January, volumes And into factor the

[ph] Earner [eater retention] has improved significantly.

And So riders, eaters our is staying of and non-members higher eaters Frequency members. know, you the and with but members especially Xx platform. up spend do. are the as than are a percentage eaters

growth on the in So, well. to all up the mobility side side the is of continued Eats both for as that adding on platform, healthy and

Great. Thanks, Dara.

welcome. You're

question. Next

next ahead. from Please from comes go Sachs. Our question Eric Sheridan Goldman

is open. line Your

the yourself over can see are? or investors out about Maybe of Dara, category improving as you improve category a side us position the up in with think large you that investments the yield the following your what little letter of output in investments sense called on should bit markets, to the position key you from two out growth how looking those the the medium delivery And better and on equation. give second as might delivery be to best the there's may in long-term? the business positioned Uber footing business, One the that to to as business prevalent? market versus think you. should with where that put how dynamics markets share overlap And where you between an then about see delivery the different where a Thank you broadly on respect that's compete subscription then competitive the where mobility we not

absolutely. Yes,

of the we're couple factors. So, I delivery on side, of seeing a result think the

the mobility that is First the then power audience in who of we of that from in our of mobility on kind largest upselling that the our players mobility have scale mobility customers to The our the delivery we is we're any platform products. actively audience got world to business the terms our each players all, and And the upselling of who competitors. vice-versa. in of have – only mobility we've are, business

who competitors, source competitors have our competitors, model against cost only of So, who on low we are traffic, low are significantly cost delivering a traffic.

structural different Snap us of competitors. these against advantage combined. platforms and just that sends the business we mobility more Our market And from that's than customers we get overall a against Google Facebook and all and our certainly have

technique our delivery Higher algorithmically think percentage efficiency as the are executing then side. orders delivery drive the learning of to and improving down well particularly on marketplace batching it on relates transaction per using to we And I side. deep cost

that top You And that which well category of you bottom position add powerful business, allowing advertisers ahead of global you of deliver economic markets grow saw product, year-on-year top to us XX up XX% while our our which at the a are rates, kinds our continues delivery drivers pretty on platform. that's gaining is get line in of basis. advertising estimates X our on some high on using

And think almost of platform. the we not markets of in happening you where single it's So, I out again, XX position. it's it's I category do X it's, broadly. market think It's every gaining of it that power X know, we're the out out see XX, And there.

you. Thank Great.

Sure.

from from Post Please ahead. next comes Bank Our go of America. question Justin

Your line is open.

Thanks. Nelson, drivers it on on spend, about network us maybe growth? high already [XXXx [ph], get then And EBITDA give you here? over run you. comments how are over your here? to billion billion progress leverage the from mobility you just the efficiencies, the that's Thank X marketing Great. update I are had take much some the noticed What you're an a rate. growth personnel, Is helping just how X] X you level, taxi thinking business, on interesting if

Okay.

So, I'll first the it. half handle of

every them we targets top to but a to the quarters line, plan. intend expectation five we the bottom. achieve I on to deliver over think least continue we've was history shows at on the into overachieved XX-month when again, our quarter So And we're year, putting out do put out and And so. last that

if referencing, Right? actually So the what you if there. trajectory, you're take QX don't which again, stop you we is

P&L, and our those we're to seeing of continuing So, single benefits. marketplace marketplace. the actually, and And every in line continue actually the optimizing to we invest, grow are we're

delivery. are so, last we And talked trip of cost big a bit benefits a year, heard we about year there. per RNA and you these This have the on dollars. our can some getting And benefits about lot the us talk little we're

well. And so, the platform quite really is operating

we're And so, is, we optimizing with product, doing tech the just like, our what work make with and work teams platform. our our we're to sure folks

what it's here our deliver to right? doing to able and incremental. hard, constant be be to currency XX% So, grow the able at scale year-over-year, tremendous It's we're

think So, we outpace end I about about margins we QX. were commentary heard you line. through what think should think you year, the think bottom more next on that is in up where to to continue XX% we think we incremental we're the understanding we'll And going

the you of if now the Right guidance, it's midpoint look XX%. at

coming is lot better our and the quarters. flow we'll So, to in that expectation do a cash is generate we importantly of that think continue to free ramp going

record at you to know, now. the right we're building track is years, new operating out we're while high you XXXX So, show level really the touching company not or guidance upon hopefully, for that,

making. to And bookings. X-wheelers, the growth disclose over business that relates look a but that look our of let's When the in markets, Taxi don't portfolio a certain way really dollars, we market, is bets as is then we Hailables, that's billion set Taxi we're the at X-wheelers that's it Taxi we already at which say,

our riders a X-wheelers, for vehicles that Uber newer for health X-wheelers, instances share, creating service. taxi, investing high-capacity then reserve are for These products new entirely that and to low-cost, Uber of like UberX use kind we're our our are in, business,

rate billion year-on-year. growing growth bets, add about XXX% at those a you If $X run we're up all

our XX% Uber growth we business, of talked certain from from about platform. and about base put we And growth for about traditional with we XX% on of new coming but beds, together QX, So, our growth the also from It's international growth expansion. our our you riders a were XX% coming growth when account of QX, platform, growth our talked volume XX% business, coming to list. the bets, in of our new XX% XX% its say at if of look coming bets in about our they growth

a So, segment to only new and business a introducing of big an products. are They'll coming then Uber building entirely part and we're not low platform our other on new of comfort as that we're cost audience to treat those tend or come use new riders to and kind growth while the themselves [indiscernible]. mainline use They'll well. this both an UberX they

portfolio. a Taxi part So, a of as we see

team a capital to bottom you're allocating and deliver seeing. his excellent top lines lines constantly base the in the growth well and to business way then as Nelson kinds bets the dynamic are that of to

So think go constant are is basis that. to GBs XX% on year-over-year. a Xx up just EBITDA up back our our about to And

And are again, sure the line levers so pulling we deliver make to all top bottom really we think I and that growth.

I think we're in quarters. coming continue we'll that to And so again, do both the confident that very

Thanks Great. thanks Dara. and Nelson

Thank you.

Next question.

next from Please go ahead. comes Our UBS. from Lloyd question Walmsley

Your line open. is

lot. Thanks I a if can. Two,

on Hailables continuing that update you the I and the of the of we the kind on competitive of of questions, more seeing on medium-term where the some at discipline – just part But you like second side guess of I landscape, international rational the product a of is on Japan of the I Korea, think versus last Thanks. delivery flagged, like the how growth some of latest what guys formats. the of like market think, cost question. color First, the improvements are and then – maybe with you the Day, flagged are – South in benefit one, as rising feel appreciate benefit the share more you the do on competitive earlier update of across Germany. Spain, new up and following And particular. Analyst much markets like a capital just are terms function seeing in just the landscape? benefit anything also those in do you like

start. I'll Yes.

In are international Spain markets, Germany, a terms market. Turkey. call out regulated a couple is the that Spain, and of would I highly

rate. of Spain. having very is success Germany. and are ton at believe strong, into we're a position Earnings in is So, we're category we adding of terms in Spain significant with strong, growing a demand Same supply our gaining marketplace. And

We're started then market a very well. four largest that by playing GDP And Europe. and the rules. it's in we It's probably years the developed Germany on around is ago,

is to very, mobility And the after. on taxi the we're building And and both a development. very as and market then in seeing of large penetrate side showing it's with go well. couple Turkey that We're and in promise delivery are that well, South So, A promise around Turkey, other markets allowed the side a America. Hailables market market, has our real happy products as us Taxi to innovating where into Argentina Germany.

really We're issues pricing, Japan, it's South development and we'd We're with Korea because of frankly, than market seeing is not Uber as and et marketplace drivers. makes cetera. the like, relates the it not – all to especially dynamic great, partially benefit there slower regulatory of think muscles We pricing what of the pricing to of reform flex kind there we're will able of on side. the

but that the than more second? it's will So, think to we help about talk absolutely a do the it's like. want then you market, taking Nelson, little time And we would something out

Yes.

partially on So correct. you're yes, so delivery, the

by rationalization driven the is the I of think capital. cost higher the marketplace of

companies to of need free terms cash trying you we've to me, flow. towards led profitability. frankly, know, for As And drive in make companies

to where led that. now. everybody And so front the right certainly, given the And is on market has we've follow had from

first you now in outs call us a And on margin. big are XX frankly, our quarter. particularly look importantly, important overall benefit if generating at it's U.K. of we're we most progress that so to right like top efficient in and the more markets, is a X% marketplaces are the so platform. And having what's certain the really Asia make And of bigger EBITDA allowing delivery, now, delivery and, seeing

above top of XX first the XX our actually targets. our markets in profitable and of quarter XX in our already today long-term top X We're

We're our line. We're and delivering line, gaining. So, we're the we're the at category market growing growing – position. bottom top on our

of in I a across think we efficient the role that's and platform what's overall has of the when and the just on the helped certainly, have increases going broader platform. and one formula. But most where you good have broadest the going cost capital benefit

Okay. Thank guys. you

Thank you.

question. Next

Mark comes open. Please Evercore. is Our next your go from question from ahead line Mahaney

Thanks. America. to seeing on about I the terms nice side, what traction the the you the make North product to in rest talk the traction, in also, in prepared advertising there advertising wanted ask are what Uber really Could world? high And side? mobility you're lean talked program And areas even Thank levels of into you One of you comments, more if record on the kind questions One the about the in for attractive? program you. – then to about Uber two seeing of development want

Yes, absolutely.

And Uber clear, CPG with So, happy platform are with advertisers sponsored new the to obviously using it's that very a revenue along new in growing is Eats. launching talked all products advertisers. products. the growing businesses. that to of items majority ads be the big donator vertical about U.S. we're the on the And overall we our our XXX,XXX products, is, number are ad who of our with XX% We are

tend continue Ads. be premium getting with because CPMs Ads Uber these Journey to if think see strong very is younger. And We high mobility demographic to about momentum Journey provider. are side you this They rider, the the a us on

they open urban tend more to moving and advertising. spending. first-rate go and They be They obviously So, they They be are and places. brands mobile. to tend to are

seeing are high advertisers. CPMs So, our as we relates it mobility to very

is These us you about And tops cities as and in new like York for driver well. launching that exciting we're what's car earnings. newer One that see tablets improve cities certain products formats way we're excited are also formats. a to about City, New quite of newer in the these are they that that certain are

car top, of will it average top as car to a extra has So a the $XXX earnings. make driver who those for with relates an week example, –

retention they're making out higher, helps money, So, are more and drivers making if which are supply hours higher. happier more, is And the marketplace.

optimistic quite there. about our we're So prospects

to Uber across One, As the I'd say board. it relates strength

are And more We XX% order be a customers Retention Xx to we members spend non-members. in best higher higher is our percentage drive well, than One to really continue of to than are goal nonmembers discount One and see and to a One is continues we the Uber giving our frequency. as bookings. Uber higher of Uber

about target and It's of that driving target. to significantly the now, we of have outside plus. XX% higher than a XX% U.S., that And penetration in markets is certain One Uber XX%

a not higher that's is and That's find target. And what target engagement with members very way profitable. One that add I is will that So, a very, customer And to we it's theoretical are essentially frequency our absolutely effective achievable. drive base. Uber a also

Okay. Thank you.

welcome. You’re

question. Next

comes question Deepak go Research. Mathivanan Please from next ahead. Our from Wolfe

Your line is open.

priority kind Uber's you Great. the is think category Dara, defending then transition of Thanks profitability impact maybe competition U.S. How reason, U.S. space? question for potential in taking what the your Nelson. going the for philosophically, And this a second do for between, a of some about if, currently. on rideshare through And market? intensifies the position questions. and is in competitor the

thoughts some XXXX wanted great. I if Thank response have update to the in the you different the on question ask ask trajectory. headwind top margins if been any in to thinking on noted there has are that was on provided so bookings top your on FX outperform to wanted markets been to XXXX Day, you you guidance You have much. for you EBITDA, a growth? line at prior I Analyst any line since and But updated a certainly, intend incremental

question first go Dara competitive second. can the I'll and answer So

we about extremely the headwinds And QX. and in just on freight. of XX% So doing quarter, business given forecast of the currency even think in terms our what right, first about did the think certainly, we're constant if in if you strong, especially XX% some you what across reported is

to to XX%, expect where on on businesses grow bookings are mobility growth depending basis. we on guidance delivery you So, currency XX% a and core constant the our

getting and the been said, that the because we we've and been you've terms So business as already be Dara and we mindful invest committed our products able are in in some we about efficient are today. so heard have of able back leverage, to of operating we talked costs about to the

benefit so, some meaningful are we about And going XXXX. seeing we think as of that into

invest strong are a think products we do us to very, bottom deliver And expect against continue enable continue importantly, the we been trying is against so cash to to top do to generate the that quarters. in and we've both is doing, which But will again, flow the to deliver line. free over which we what very in coming

geographies And products. I the and to that expect should think again, well lot invest a in so we now, new company. as of the And invest spend continue. allocation working capital you would right say that again, inside just new in quite formula just both we're is And on do time well I because able as, to

consistently internal our at been been external targets false we would far is, we've Yes. first between thing have trade-off. And position. the in a as the past And you've quarter. that I X and right, expectations, that excess of Deepak, delivering as CP rate trade-off say the a category in We've and on I X, profitability as that's XX% excess profitability, over seen, demonstrated quarters of this hope gaining last well

the the don't. And EBITDA And are are in executing X markets. of platform XX competitors having power again, the the combination of a XX% really in that essentially incremental player being of EBITDA, out and category adjusted over scale record of delivering player, well being adjusted our position margins gaining while team it's million global XXX the our

domestically through seeing with what are we as far a As lot changes. obviously, going of Lyft, they're

that we're competing a very It's us. on on what price up brand. sets cetera. we're reliability, competitively strong brand we're anywhere. competitive looking And to and very, where we they're a competing seeing think going environment is, accuracy, and not And It's with and et service ETAs

sets forward. we think environment going up a constructive So, competitive it

report they don't you'll I otherwise. it But disciplined ask any I think so a earnings them when But what constructive, forward. seen reason see haven't question marketplace. change. is is as their and far, would what we do think We more any strategy their we why to have signal as far going that see

I very money for temporarily. think using days the market share has and said days paying to shareholder are essentially Those clearly the very, share of over. buy that

is And environment tech for so, in market be the especially generally, competitive going forward. to but we think overall constructive our going

Our Colantuoni ahead. go John next Jefferies. comes from from Please question

line open. Your is

Canada wanted lower among why the look in for adoption cohorts newer improve Hi, pre-COVID Is or I'm One demographics cohort newer and something an cohorts XXXX the to again. curious the cohorts. adoption U.S. ahead. And at if And in frequency or Go second than thanks frequency. there's that's questions. taking else my mainly, or Uber about the cohorts? I – figures of for then there I'm Reserve causing question of curious to the something older sorry. the reserve higher opportunity was

No, go ahead. ahead. Go

Ask your second question.

Yes.

are accelerate and bit businesses, to for help relative looking look trending falling think you core a has profitability on that and Thanks. and quickly year? update headwinds. to for to pare business on freight. about back of been And you Just to short opportunities monetize when to delivery industry Freight on you business to expectations path build or sort ROIC you throughout how allocation that to business opportunities from that strategic performance your the grade? just, even us GAAP your envision of investment Can capital mobility

absolutely. Yes,

the one. on the one, think second will I first Nelson take So,

about, In it's think it's what a exactly is product which we talked frequency set. of cohorts, you terms of

our was, use significantly at x et set our someone look opportunities there versus share, that are reimagined reserve it's If or of available product we XXXX, product to to higher more our is mobility cetera, have it product. just breadth the today riders whether than for you

it should it's also for program, frequency, in each higher a products we higher think at just resulting impact mobility, available then frequency up that's than will healthy the over it on pricing, basis. we if to generally as well. frequency as is Also a higher and have mathematically well And our But remember as a for across them. period show but have mobility kind higher their going membership in you of that healthy delivery availability, the because increases, cohort, the time, year-on-year newer business, drive incrementality look of XXXX cohort,

getting So, able these innovate frequency way kind frequency, platform each have know, new else we you numbers. in to no as are in products, They're cross-sell a around on that And can. we and since think be should especially or we are we only able very, of industry-leading one very better. continue them rise platform to bring strong, as to a users

Nelson, do you to want talk freight?

Sure.

macro Freight, of terms low macro is we perspective, all of a a first So, the from in at – are on cycle. this

happened And supply arrested. And lot entered broadly. during a so supply challenges what of the lot a came COVID have was market chain that of the

oversupplied very now, right a seeing you're market. So,

rates. impacts a And really rates. it impacts really that of contract So combination versus spot

as you globally. will other brokerage going actually probably space. carriers that's freight in so And and And you see on about that think the certainly

are GAAP the impact, all we guidance the its into about put that getting think of make made. we've guidance into taken think operating those terms as into the profit, we In towards statements we as about account we out

And employees so, to is a And raised actually and of we think external equity excess fact, allocation freight are the free we well. note important even we perspective, from capital in to about it getting freight separately. as that capital fund funded while

so, well. separate a And it manages board there's as that

believe team very of terms in So, freight The progress business. continues analog that to something is in. digitizing really make we a still

team terms [Leo impact, But the as of think progress we're the as We applications does lot make cycle give well no we have optionality that around will, and minimal part making we are generating cycle. there. very has about you the progress, in we a [ph] operating of very And or tough of impact challenging of it. cash again, guidance both and the are the some in if again, again, good of the in at a flow. team] as GAAP corporate terms free part it profit, in and a perspective of But

add. one going just to to frequency other think I note back

why pool, UberX of optimistic extremely high frequency, actually on shares product, you now. cohort, part a we're is, us our significant which about much margin was the reasons low-margin but if XXXX side portfolio the the product a quite frequency look negative was Uber for than of more at One the mobility

share the Uber within launching work. now are right way that with We economics

the of rider and terms the and well. driver incentives We are in aligning between ourselves as pricing

it, strong UberX general tailwind we're We in for and seeing to membership additional there. going share consumers be addition that So, experience forward as program. signal as think an we could the expand and frequency experience

Next question.

Our last question go will come from Ron Josey ahead. from Citi. Please

open. is line Your

in One, gross I more at Talk for now love given around the for as it One. little XX% us a convenience, adoption to very to just to there letter, Thank continued investments progress about just you verticals of ask a accounts would newer about programs of about then as the hear Great. And question. drive to bit talk bookings. little delivery, bit well. the to Thanks relates was much. taking it there wanted Uber delivery, just the within more Uber grocery,

Yes, absolutely, Ron.

terms your retention. it, is initial membership of want Uber to you're that to But you then if our point, numbers program, time we up. them we're One incredibly So, are easy call program, Any where hit adoption get, be, actually some retention of it's to in on statistics of Uber important, a wall. One kind at going more the while focused build not

the are, make making team you So, we of is late, it much and that's that priorities they for very what actually, up at delivery it's experience of if One retention, get a Uber kind sure look If on rate. the member them. an first their

payment Making like even cetera. payments are or renewals, et details sure failure rates that minimized,

in the for that we rates retention if work kind gritty improve is, of right our that this kind we're membership of members is overall the that improve And making sure our retention in year we actually retention means moving are see program of membership All work, quite to priority behind scenes you'll direction, obviously, rates, continue then and half confident increase. higher trends definitely well. as

the experiential more is the of it's overall benefits the group. money. our look priority members dispatch benefits will higher a the see introduce percentage discounts definitely But about a certain So, into you increased will them be and focus periods also, ton our they awesome the showing will like during logically now, of we are as just it's using to discount bookings, the and for should that And gross a penetration of save because experiential program it much well. relates program all of as that really to Right Uber One.

no Those are can that offer benefits that really unique we one offer. else can

new business annualized a investment rate. in itself. gross excited As growing progress the year-on-year. bookings What it's verticals, XX% – very we're at on optimistic we're far product of really, disciplined now the The into $X there. as excess And is billion path run most is our We're very, a category. about

percentage to introducing have are up have a the experience we percentage And the new across about audience the native selection. nicely. about use And We we basis then from increased Uber order each it's done who points customers Eats the larger XXX year-on-year, of who customers grocer seen as company. It's that, of much new terms of verticals. in verticals all then

the largest in Australia. It's selection about of partners, grocer. new retail They're second Kohl's partners like launching like

who experience and they're be use as continues selection ease add to happy new back. we Those As are to improve. going come to verticals going customers

is to here very but a trend we way the long go. have So, positive,

same but the of able get in to new be is I by ambition forward that more new verticals, we're it if the results there. think seen it now, are at same deliver vertical Our disciplined And us seen of going same to our the jobs. for but the new in $X think going have we you've like invest at time, that margins billion growth do multiples take And to the you will products, time. substantial increases I at

up Let's you, wrap there. everyone, it Thank joining. for

next and much you quarter. talk to very you Thank for we'll joining,

This concludes today's conference call. Thank you for your participation.

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