Uber (UBER) 1 Aug 232023 Q2 Earnings call transcript

Hello, and welcome to Uber Q2 '23 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

I will now turn the conference over to Alax Wang, Head of Investor Relations. ahead. go Please

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

today, Chai. On and call we CEO, Uber the 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 a release, disclosures of are non-GAAP supplemental measures investor.uber.com. our GAAP these the regarding measures, non-GAAP filings is with

may As change. a be are and these reminder, subject numbers unaudited to

this on and are presentation forward-looking this in statements call statements. Certain

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

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

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

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

let it to that, over With Dara. hand me

Thanks, Alax.

that our wasn't of history, about For most Uber. when the came first profitable you thing up someone asked

the us years. many But wrong Uber understood of over the about they capital felt decade boldly In fact, who never our many obscured the were over the I they claimed availability the money. observers of we as knew economics the -- many why unit And backed businesses. pure poor make did years of investors that over that we any would easy past way;

and our transformation towards quarter couriers delivering this of total over cash two and the demonstrates growth: first-ever high we've on all-time free top-line drivers million, engagement, billion earnings of and in $XX.X of important our the reached platform. billion, all which strong quarter, operating platform flow a profit GAAP We for $X first record undergone while $XXX growth profitable milestones new significant the

when before, continue growth a mission GAAP said expand and strong end. a income are deliver can will our both we've comes is into that that and scale margins. We also an appropriately not profitability There generational businesses on merely initiatives at it us while remain very fulfilling growth our cash disciplined means to future. few building focused flow, to investments As and the and operating scaling free making fund carry company, to

through announced profitability on want to past huge a a also five credibility and gearing times, search Uber's we January I leaving be for hearing our trust investor for he's and grateful and a been a strong trusted sorely team path all-hands speak with entire we're advisor personally, I such base, during Nelson way. done phenomenal Nelson leader. thank a years, transformation company foundation has for and over public, transition meetings. a of smooth me establish part we'll who take new know our that building X Uber our to I that after the unplugged for been Nelson, will to overseeing us has establishing Nelson we moment everything along company to finance taking that a the as for unprecedented miss forward the the

let's questions. that, to With the open call

Stanley. from Thank line Nowak Please first ahead. the of comes question you. Brian Instructions] Morgan [Operator go Your with

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

sort of key we bookings double-digit that double just the the] of of thinking it (ph) digits? keep Dara, talk one multi-year growth. -- thinking through multi-year can ride Is we frequency? growing driving sort pricing? just it that or users? schematic sort through Is How Is be the is should through Mobility it drivers how to [math what first should bookings? versus single-digit on be of us The you

curious And better quarter, potential second now do the one, about you're matching the I'd podcasts network? And drive the and conversion then, be and some analyze use of hear overall the the network? think around how forward, across network. you models improving large about to them know the to higher language did you going matching to I interviews throughout how using even

Yeah, absolutely. Great questions, Brian.

terms price. in year-on-year. it to platform, X% frequency year-on-year listen, transactions say Mobility, And of a the audience MAPC, And of that. So, actually on which comes it's audience per XX% stronger our growth and is I'd Mobility formula our frequency and in been has basis to our has the down basics, than -- terms it even comes with -- growth there, increased overall MAPC for the consistently

able in continues there frequency you high-single and if continue at be think think that and we point as should low-double either expand introduce not we increase at as host audience products terms to quite of we month. we strong about uses X.X new to out And audience even digits, of a to well, per digits, grow frequency, as this at it's all-time highs internationally and and

the And Mobility X like Brazil frequency if alone, certain markets times over a look you month. is in at

So, increasing Again, more we the demand. world more think into the frequency. service and we've we got on add products goes many, many as generally years of

we in or grow well, then, that double-digit growth a price have pricing growth base you it, it digits, growth, get digits. business. And as for the plus, even can rate you to frequency, Again, we the of call double pricing top single inflation a the on think single-digits you say that, single-digits, audience, business -- if in base add normalized

and capacity Uber This growth Health, for certainly our today you would run at look a said rate. it's X-wheelers, going XX% high taxis, that new Reserve, year-on-year products gross and a growing Then, vehicles. faster on there. on basis. base our adding Uber account when enterprise portfolio Share bookings business, for the UberX Uber we XX% growing for base low-cost forward That example, is or $X business. top It's of X-wheelers, number product, whole Business the adding lot about product over billion this is at We for a have is of that of than out

historically number or shift have where Spain kinds to model, is over international models, on model we other different taxi This Germany or Argentina, there. they're a top models, of is their cetera. billion. That to that of in PXP markets $X or Korea And of XXX%. of out whether models, our et licensed host got we've bookings traditional countries Japan been you that, haven't or growing or It's pool Turkey, of a well then, about

and bets billion, we're and growing that to we've our add pricing; of international some for the countries territory combine big And got then you a frequency, think over Germany, are that you we together, the is portfolio driving continue cost some expand all growth that you've that you when business. ones that that you a $X going to, in audience think, get discipline foreseeable into get a then XXX%; and business I a get formula that Mobility EBITDA with into, shown, like portfolio where solid double-digits. future the growth base in So, which can is we're we of growth got strong very

there. cetera, large of of kind appropriate of second the cetera, different large there models what out artificial on models The many so guessing text next in language more et The cetera et are terms answer question intelligence, and kinds pictures, matching, et is. focused learning, machine language are and

at like into this matching, as not point they're So, problems routing. extensible pricing,

Now and been for the those machine are years using platforms learning, past over models, years. where deep This years we have learning is and years. XX

number out the different ability learning food, someone greatest platform of going in greatest throughput. of just increases, our availability on terms and and think job it's the increases, able or there, dispatch marketplace to amount of drivers to innovate a data to of that amount of world the single for compute I whether as to machine Delivery as team the data our it have combine marketplace we and continue in of have as our all someone And to the on pool, them Mobility, a data pool and we combinations driving shows and in our best delivering out pool, jobs, models, these shopping the the in capabilities or data we there, be we possible think couriers

than are Our stronger ETAs competitors. our

of Our And to throughput. well, category significant we're category and shows it business in the terms position while grow our more gain position market. drivers total pricing our able our delivering as XX marketplace in a out in in of result, Mobility efficiently top end value as optimizes to eight we where our

is growth top-line happier we're to the very that there there capabilities of and in-house, the the we with data speak. built so we the out are, confident more So,

Great. Thanks, Dara.

welcome. You're

Next question?

Please line of Justin Post comes Bank question ahead. the next go of Your from America. with

on AV one Great. partnership. on and Delivery Thank one Maybe you.

restaurant you is acceleration non-restaurant talk Obviously, reopening Delivery, the can in Is market? that about the lot of you state in growth. penetration expect here? double-digit low there. do For a growth hurting the market? But rates? how think Do about you And you're the from helping

maybe second, market give companies? potential the Waymo? details versus about opening to other the a partnership on maybe Thanks you're far as riders us lot. long-term as costs some AVs How then with thinking competition up And and more from

Yes, absolutely.

the business, trends Delivery accelerated grew to pleased currency, with quarter, constant constant currency. quite at actually about the XX% at we're there. look we XX% Last when So, that we

the come well, there. a Verticals to This we as But frequency as consumer a are help. our we and sizes of was basket improve our improve from New members, delivery average as generally service, we the times bookings continue quarter, as our higher certainly drive percentage higher to positive

growth position quarter terms going shake marketplace, of price, consistent this expect top-line generally, audience, again, and forward. factors going we're things well, confident the of positive you Delivery break this even of saw the competitive as growth all So and with depending quite on business. frequency or in are our we quarter those the of growth But in how from forward, out. down accelerating we Delivery terms what and And

markets penetration in low. And we think is very these the

call significant in of particular from of there, to, So, there, markets XX% in anywhere many developed wired of market. restaurants restaurants markets XX% we've our a it, up

on restaurants great servicing out want way all staying the another think So, on-demand want because you it's local their marketplace. we a about them communities. getting as clients. if it's think are They've another of you whenever And wire more just connected, delivery, there, the of in They're basis. then of people loyal food way we naturally got inventory up, these

runway with restaurant of a So, the a XX% that long we've total being, call we long, XX%, in got early penetration us. to into markets very our major think of it, ahead range the

product demand portfolio and AVs, other of best-of-breed network their partners, it's with have technical because we're in to of to and whether that and comes one including a are We economics tell think example. is to terms to terms routing this like. we ambition determine building a what business. others, autonomous or our point route look working into soon In very, partnership on -- at not the on trucking, Waymo capabilities quite essentially we'll do partners really this or the We're have to there out to layer really a the Waymo. too between we focused excited It in build should about think a real-time early, a going Waymo the their person with for out or they partners, able basis very quite when we autonomous our to are demand and in be Aurora of are to developing

or O&D That service and We there. towards allow but is the out have capabilities the off drop should demand time, well. the rider for that as serve dynamic or the demand you fit, really system out. great a the to close close shipper, is The same autonomous at can many shift you, to it's to they really us routing partners eater the that you, deliver the the player, delivery built pickup

autonomous technology, at many, and So, Motional to Aurora there, really on ecosystem. continue Cartken. Nuro or many and and of very a stages or the support want we'll out There think [Serve] very, to it's partnerships, our early (ph) or are players or or whether build build large that Waymo building we're we or we Volvo

Great. Thank you.

question? You're Next welcome.

the ahead. line ISI. Mahaney from go comes Evercore Please question of next Your with Mark

the maybe for Uber a level? on One or Thanks. about it rolling about could know lead of you're that into thinking in talk the about where penetration where year that is we you working take product next Are innovations that is adoption Okay. you to you're to kind could One Can I where more market One. And talk higher Uber think that America two a there out currently of on? about could you users, so the markets. go One international globally? North Uber of

on operational that then much. was And move that, think of Is the that was looks to Is there a of just because you that briefly, kind Thank a revenue high sustainable? efficiencies? it like Mobility reason -- it record to take rate, higher continues very XX.X%.

Nelson, do you then first, I'll... take to rate want take

Yes.

of So, if you if you the merchant down QX. But the was Mark, year XX.X%. actually all, happened the you first -- rate U.K. versus was actually -- model change, reported which have adjust rate take It's take a underlying XX.X%. for ago,

investments the on we the by So, largely it's if XX particularly through international you some APAC. made basis, decreased actually markets, and in rate it underlying And some basis boil take supply points, because LatAm all.

Uber for out creates for now that Mobility spend earn that for that on but on because more allows the is cash into excited product essentially And the goes, we consumer If XX business money on is on it consumer. they a rides, cash that then, Delivery. platform. one One Cash the is which expanding introduction it in Uber our there, it we're for can cool. the Cash as personal consumer offer say One, I'd a spend far the Mobility, as We is the earn pretty incrementality better the to area business. addition Uber then They trip, across markets higher think quite can example, trip, to they a about also of discount but spend

across trip, far Uber very, the win-win. win spending, a we apply for they of as a So, their let's Mobility because is it's incrementality benefit that spend to, the membership as it's say, increased think win it's very what versus a could and a consumer it just way platform and a drives we goes. It's discount for observe flexible because that

we're an a Black benefits just, on Some that example, in membership or upgrade nature of is advantaged into to in into pickup a aren't for working areas say, creating or the discounts in other which an create, let's airports. Comfort more upgrade

technical now, of think experiential also Delivery, that memberships bookings say, membership in speak, as far we term, retention. a we're annual drive it's up membership mid-XX%s. bookings long-term they for lock drive set membership then, benefits platform. for significantly in They the but platform membership of and high upselling retention, platform, to don't is gross that higher example, members the let's to capabilities, the over to can necessarily bookings. some gross in the the well. on really longer So, create penetration across XX%-s And Taiwan, or from But near Right the gross than for number as penetration long-term so our account members monthly working XX% as in example, members the,

So that's really aim. our

level. company across Our global is on the to basis aim getting that XX% a

continuing today our that far done we know really are because it's globally can it. and We from base. about penetration doing But it it we're be across to user drive Taiwan, in and expand

Nelson. you, Dara. Thank you, Thank

welcome. very You're

Thanks.

question? Next

Ross comes Your ahead. Barclays. next go from Sandler question the Please line with of

guys. Hey,

solid. the Mobility the look continues margin for of improving pretty to incremental profitability, On topic

on As that of we that markets that getting function the some that Is to double-digit that towards little margin target, are here? Any color main ahead to would closer still average? services? drivers what below just wearing additional of closer look helpful. these bit in average a EBITDA new Is a be the bringing from are it Uber

travel then, question -- on And new second options. is around

efforts? new Delivery U.K., core opportunity to from do the you things and business? some of And a tickets view of outside Thanks. the in learnings things. added other the the the So, longer-term recently early few Mobility around these and you and What's how ability train bus book have guys these

So, profitability. I'll on first the one Mobility take Ross,

up new as And bit but or investments up march as be in either some well line have the expansion, about sometimes are you there consumer to not we as continue might profile margin, -- do insurance drivers, and you Mobility But continue margin to continue quarters as invest we march We'll some it. think committed continuing to quarters. if more little geographies. to so, we incentives. our products make offensive the know, a you There're know, we we'll may profitability it where are up. will to in also sometimes march, new pops other going over previous a be because where straight the It

It's really really simple base. we in are terms fixed of levering cost our

what variable areas. products As you really doing on adoption on of some all including fixed other some know, the then, really cost, insurance. cost of new we're we And both focused seeing like good these hard are leverage containing getting is Reserve our we're in items, some

And in expansion. -- results really margin so, that what that is

and that discipline margin that the company kind expect so expansion. of maintain should And to you will -- continue cost

be some over in big markets will where have over there, like there growth march-up the some expansions, those other to like the build that expect particularly but we out time to they been past time. on some margins continue of markets to the will should you Yes, have of continue and period Germany markets

And if compete two up single wire it's U.K., out you that observed. we in just that look at trends or subways that's of things for really buses vehicle world the our to in borne generally, every One move the example, our transit, you we different we terms in want and/or around. is efforts and of with. that saw taxis efforts And used to to available people

we every platform. we on think taxi can single the have on should we Now, -- Earth

on, just was but that one the not in U.K., we that been world. trend have focused So, the around

And operator and your essentially, West, traditional cetera. et we Eurostar Travel go very was look from significant app. with extent, operators week, are he to this your experiences, Counsel, of in Delight. the We audience can't to previous know coach in said, we for are at the that pickups "Hey, U.K. last my know for Tony payments. I travelers tour this, is why ecosystem tour rival And we he the travelers. beautifully in what identity. on will U.K., General that We providing, operators us, tour airports, is after both and the was already you market?" up ticket are. who was, Second transport some we effortlessly example, important a drop-offs, saying and We U.K. international of think we and you terms the have very the booked Uber know services building a call

with we're a on the on to early power B, that point worried products et to travel market, learning, And use little our of these distract consumer the the can to get right [indiscernible], A I'm right cetera, tour product frankly, app the And the we more in user from operator the there. to we're mainline that get and case from me experimentation going to with is additional from seeing offer I with go just time. at want recently what the machine the

those just of cannibalization to not than but being offer higher think extend thought, want be expanded we're the and we we and everyday not morning we're Uber, well, it's you you open on travel be with as Eurostar, users to life, will using we as services, into for and that well. to And flights operating the when actually might offer the ways base work, that to So, companion we know different business. but the morning, commute be to go when Tuesday a new We've kind of your you for we we of seeing engagement now don't seeing system services. your those

the is that signal U.K. large And of again, go market operator market So, Early in can is hopeful positive. tour that we're very we quite very, a that business. after.

question? Next

Doug ahead. Your Anmuth the JPMorgan. question with from comes go Please of next line

experience upfront in this the fares you particular? talk rolling in And the are Thanks out for about of and just Share, then, upfront for point? you Can the at Thanks. questions. that expansion for also, improvements UberX destination, taking new seeing the both drivers you're and shared and riders rides where fully

Absolutely.

the factor in expansion, So, The direction of in they it's have we're upfront know drivers with most the is important destination for getting think, for in not terms are, upfront single the accept terms so driver process accept information that worst happy generally very need cancellations, of all rider fares, a there. they very, and driver ask driving our trip. trip they that cancellations, accepts. I Uber, an or the when to you which a order that the experience It's for that

four then much because, over a significantly for minutes that's minutes, and driver Cancels you the knowing waiting five the been down all experience, trip more. drivers are very, it accept because You've start your to accept cancels, very who have cycle again, or negative much, the again.

that a standpoint, being see prices we from significant positive experience. So the consumer as upfront for

have There figure are out. still to things that we

price communicating work for price price, long we minutes pickup drive higher driver -- transparent will the for feel XX have upfront on. has that and like in a for a if offering particular driver. price pickup, So, to time, work driver so Whether upfront for a the into upfront enough that is why has the to upfront minutes a a two provide to example, we're a We the sometimes but to pickup. we I something instead of that we're still don't

pricing. also pricing to improve We opportunities upfront in have our

back likely way. to in into So, or for to where deadhead the take have likely upfront place back, ride algorithmic to you're you're the less if where example, a more a an a to work suburbs that trip price you

a getting pricing we're algorithms effectively And or have trip more at price certain are why to lot rate, a do a communicate more and of really then, visibility driver what price acceptance trip. we to rate power smartly drivers. to non-acceptance we into So is we're that a to using

the driver are core moving and marketplace and and our And say, at forward, let's team. algos we we're pricing is very our at about that direction. conversion it's optimistic. cancels all something marketplace when building the better right when So, in going we metrics very, that's The look set to, look ETAs, improving skill rates of

for UberX quite terms Share, the UberX we momentum of are of Share. terms in In positive

the XX of we in X that in. York, New call taking I'm from terms now New are In UberX We're week. York, in do markets weekly markets. every over this trips XXX,XXX We expanding single now we're

in product we in and of being efficiency drive then match terms of terms certain translate that to expanding, is is promising able to incredibly in of in can or XX% rates the Share cities Vancouver that So UberX over Toronto, we which showing consumer. distance of are kind in efficiency

more data probability we about about routes a matching, The have we our probability pricing. can high we routes matching a get routes which and we improve and which of have high of don't

XX% trips hot So, matching. now call hot a discount for A example, of are the covered likelihood versus by what an discount routes. on is post-match upfront based we of route

X say So, product we of have the I would it's matches more we in marketplace, stronger more early, the becomes. terms but the the combinations have, Share

U.S. our U.S. is that significant of competitor, Lyft, competitor, out Our market.

reduces is in extent, to obviously, is term, as shared and congestion well, lowers environmental which And for very prices to the think trips. product. a some for in build invest long a great we to opportunity to footprint we in it, out our cities reason So, And which very, liquidity it lowers continue is us this think, consumers, great. good

Dara. you, Thank

All right. Thank you.

question? Next

question Eric the Sachs. of next with line from go Please comes Goldman ahead. Your Sheridan

taking the initiatives. advertising for Maybe multi-parter on the question. a Thanks

they funnel, between different scale, the how Thanks. the brand scaling top of those coming behavior of are of most that And continue of ad given advertiser, to respect with by might your ad are advertising? type you Delivery platforms? impressions, and business bottom of see budget and impressions? learnings how sort do versus conversion industry to the of and you attractive measured of ad engagement might your different they some allocating verticals whether the Mobility across what As the funnel, scale, key in on the And the see consumer the business the differences

Yes, Eric, mouthful. a that's quite

are say you all, exceeding run would progress ad are target essentially higher higher towards for XXXX. strong from ad is we're rate spend ad of ad the vast $XXX and of return it that our million, on return bidding first in on who all So, get business our about times to in times and position that ranges the The overall, of up, majority add Uber Today, very their making $X I our X when X have billion we in marketplace. productivity the terms business, spend. they SMBs

very excited profitable very, that to about. healthy significantly that businesses allows and is quite on and something is Uber that build their essentially this platform, medium So spend the we're business small

are, of during that Enterprise enterprise have they're day. the extending now new for reach generally customers Some times customers. have more our targeted SMB needs looking one, we advertisements initiatives customers. or a do different certain with Typically, advertisements than

example, say, dinner For much anyway. as and now lot might they're breakfast of help during when want they let's during help, time busy

penetration number. us. customers right of increase And huge for a X% now of so, gross both we because we penetration for bookings a if ad it's tools, think at of opportunity time are have We spend can cetera, in enterprise are terms process of call targeting than look target enterprises but are a their now about building And customers, it think lower advertising, of for also huge, building built customers, out that and in out enterprise tools et specifically in marketplace. the significantly as enterprise enterprise our we that we in as percentage the gross bookings

Then, we focused think the CPG we're on third area that are advertisers.

So, which Criteo products a is within feature sponsored spend in partnership have we we quarter, launched items to This advertisers enables CPG app. Uber CPG Eats last and billions the the priority with audience typically again, dollars promote, products specific is that grocery to they of that specific -- advertising advertising. the grow. a targeted that's to highly a continues that to audience in for want Again,

front essentially but of the This have Ads other our one products, that And then puts certainly, Ads. Journey we customer. Journey mention is last a I'll Mobility our not of but bunch video Mobility, least, advertisers is both a high-end introduce Eats, well. X% with this, to click-through. audience at high, New as we're customer. excited is very, engagement a the as ads And advertising to pretty Verticals very pretty The well in

premium So, enterprise CPG really there's then building product, a highest advertisers portfolio like of now SMBs, portfolio penetration we're getting of Mobility of full but in as our building, customers, well. as advertisers, the the including business front Apple products that we're and

for Great. the all Dara. color, Thanks

You bet.

Next question?

of from comes Please line Research. Mathivanan question next with Deepak Your Wolfe ahead. the go

profitability profitability earlier on another Uber contribution memberships also on base non-subscribers Great. cohorts be One Are One and becomes Verticals. of the for One, now of kind subscriber the of habituation does incremental some of part taking a maybe it? margin as Thanks at the On starting New benefits see and margins growing mature this you the and to compare and questions. How Uber then steadily. continue versus on volumes to time? or

the it's New Vertical, are driving does some terms business? what color much. give about the -- And core of inside noted see now? you or right categories XX% you stand do where profitability Delivery. on growth Thank versus so where you primarily then, in the of Verticals New restaurants And you on that Can bookings

Absolutely.

One, in are So, in we're focused and retention profitability less driving Uber we terms of as One product. of engagement the on Uber generally

but non-members value member let's are rides. are about XX% on higher times members But we're One spent again profit is Uber on discounts their retention. So, a our Uber retention cashback One is profitable, margins are non-member on X significantly and lower than their greater discounts, members from monthly of the basis delivery amount generally lifetime delivering say, because members because

engagement focused deepen bookings, across would it's news I members from So, on and at to years a and margins. members percentage of now, We right delivery much we on year these point, about penetration not mobility. really essentially as get we're profitability or the general both experience. are to two say total member profitable. will gross because this driving Good of now, focusing that want the a is more

penetrated category of New vertical we convenience small And basket is that a we Verticals $XX, viewing, sizes, categories, merchants shopping have the These a cart, coming grocery. the back now out there. terms more $XX. was category. obviously, new This appointment week. We're every In on large first focused are the of and convenience bunch much

to their own Verticals we've before into proprietary partner from with we're and and of New Uber of finding continues add penetration traffic family. unique grocery that New our have whatever partners. The audience they increase, as or our is that any new there, especially Verticals that traffic from see So, out audience, the platform the us. got the differentiated XX%-plus grocers Uber they we largest

audience is category penetrate we're very helping So, excited grocery the that in new huge it's us a that that comes into about.

excited add-ons area we're newest now. that are Verticals about New also The pretty of

circumstances in at essentially those a from close go see know go to pick can and and So, and offer your order food up you especially you. restaurant, have add-on. we then courier the that up pick restaurant these the restaurant We that where -- we are we to other and add-ons merchants that

are be an might it easy be two add-ons about is really for on and so was order as packages, ice the introduces depending me, last new is this picking store which Those New ordering we're the responsible a from which circumstance, great it my But into now for add-on and Verticals it's one up for from a cream is week, same is cream, same small might which nearby. So, world. percentage consumer. pretty XX%. this the products seeing the X-Eleven, of Verticals the add-ons, Eats, from family was our sort into of people a liquor an quite on highest ice at wine this audience consumer or it delightful New entree into volume platform, experience it was time, shop -- a And of what couriers incremental the

we're in But a liquid, business, cost we're able profitable see we business, overall New we you a portfolio. Verticals. Verticals. significantly on the scale of in gets countries increase at that marketplace we're From the cost of long way think reducing to have that overall, business Delivery go can overall per the transaction We New control as take the time, our there as the money achieving, the profitability a But losing improve more we that and into we some same already on to overall we the can have Verticals money margin. invest standpoint, of couple margins New can of are

we we have now, change. and good expect that we a think don't right pretty balance So there, to

Thank Dara. you,

next the question? Can we right. You're All have welcome.

comes with Bernstein. go Nikhil of from question line the next Your Devnani Please ahead.

clearly for When ride at on type. look usage engagement mobility greater Dara, on see you hear and comments amongst taking the Thank of my frequency to kind like that rides. by seems you questions. slide lower-cost it slide, helpful the and Hi. the

the types of feel do down if you the with to new cost that up kind Or even that service you frequency keep you So, bring are going overall ride just the can do to higher? need driving you there think improvements supply and of prices inflation? get

about to? question be is Or is beyond this to that any better you on margins Incremental you, or still? When that there you think then And we can framework anchor reason keep to holding profitability. 'XX, business both. we shouldn't a continue something beating. X% second Thank maybe

So, on I'll the start incremental margin.

or out margins we the look, laid that incremental to above remain at previously. committed X% So, we've

continue to going that continued in are are initiatives about. balance it some the growth to of asking with investments We folks

you we you how February, know, incremental X% three-year midpoint we're against talked and we've the And so think those QX we you guidance, it If look our at as of the margins. about halfway plan overachieved performed, last every implies if through quarter. about

so, And do you foreseeable we against expect expect the X% framework. for well that quite will yes, future. at But continue margins incremental you that should to should least

one -- more want terms I'd frequency The low in generally, we say the both, question, in uses as orders one, find various that, customer spent Nikhil, choice, consumers of only the cost significantly Uber fashion, ways UberX. Yes. engagement. on than high Uber we the customer more that typical cost, to in we who whether of let's regardless say, it's your, who, average the as or than drive we increase product of transportation

there's on it's think to we of activities frequency the products, get whether that products, I and that which engagement multiple products you multiple that of have, Mobility set is Mobility, drives one buy or combination So, Delivery just platform.

and The membership. X on bookings increase is number have that times that They members higher. second increase of the the we penetration area And just as frequency platform, gross spend book more. members membership have members higher of we we we retention significantly as is mathematically, the more. And

So, frequency well. get higher we as just mathematically, will

UberX that then, products frequency. vehicles, our primary become part life the do become those X-wheelers, think audience cost. And for for a but high is be Share, of low all of of therefore, look us the which Moto, if source product, of significant globe. They people. low-cost they our low frequency very have commute around Often of at are you differentiator a everyday and, cost And some a for can the third we significant increasing driver high-capacity

that the quite increasing and we why keep over I comparable that's And basis a of above. can a and frequency price, product all product think we're long But extent, audience confident some it's to on to time. period

you. Thank Great.

welcome. You're

Next question?

from the comes Lloyd question ahead. with Walmsley line Lloyd next sorry, Please Your -- UBS. go of the

Two if questions, Thanks. I can.

it kind quarter be X that? number the it thinking at we magic just to be looking ratings a based about to or return you start can leverage post should magic under there guide. after your First, set capital? fall which is ratio, will that of like for on a or all actually Is looks number next you time agencies How

flag rideshare share the just competitor unit you one, economics the on And updated thoughts dynamics us then With impact give competitive in or market? changing, U.S. prices any to out? can on second that in on that we have how this dynamic then, U.S. late. or reduced the play to some been And about into Thanks. Is there booking competitive should market? Anything of fees that? reports think your

the handle I'll first So, question.

sure previous day ample one cushion goal about liquidity, that is our always that sheet. have us do. balance make on we heard which calls, first that on been we have we from you've We've adequate our So, clear to

started starting obviously quarter You're cash free flow. the continue on see you that out That we to expect this that to year, the quarters. saw ramp the and last for

progress the we grade. towards investment We past about in are talked have -- make continuing to

important not quarters know of a capital to going ramp gating we're will because that talk the which you for we available terms we item continue free in is to that years in So coming us. about as not, is It a our do to about think or return that and cash.

excess will our monetize our stakes. returning And the shareholders next equity we evaluate flows so, capital cash few we ramp over further and quarters as as to

managed to you are to we So that and is our clear it's And -- going be not very again, to gating to because strong from we competitive of a you how we capital have wants balance work anybody I the it's -- huge compete against important do know, to make cost sure advantage but towards we that's start, a sheet, grade, we've just item, want think investment us. it continue versus that a Lloyd. as

(ph). booking some share first terms in report is [Yipit] of And a think fees, on of all, of fees, the I then booking from there kind and

it think can inaccurate. tell fees. That terms data I of is was we booking in what from

booking costs. updated based fees booking have fees insurance we rebalanced on So, our generally and

certain of Our of And booking significant fees areas, number cover but markets. costs we've booking taken a insurance portion a are in fees that. up

you we're say, markets, exactly in pockets, percentage certain significantly where which of, is than take the For a we else then other certain the higher these lawyers and driver down much for country. what which Los pretty tort is to have are seen et Virginia, terrific. able where example, booking due effective are Angeles, in of We or And the fees. they which tort in insurance Georgia think prices want, reform, consumers, costs let's environment increased to higher anywhere cetera, abuses, we tort puts earnings

that So any I more kind that and in of it a just creates reflecting rebalancing wouldn't saw. we as the averaging wasn't movement as rebalancing. trip was significant from certainly the It's true material versus marketplace expect significant report nationwide. we're the because efficiency over that cost volumes -- of a

a rebalancing. the kind able to efficiency, which of costs right our throughput that of the drive goal these is think is deaveraging generally platform of for we higher at marketplace So,

our In a, competitive comparable I'd and competitive in are in in Lyft. our not pricing some resulted pricing. constructive quite of marketplace. was is has Generally, -- tough actions, ago, terms share, say, of they Nine competitive Lyft that XX now. is to listen, terms they've pricing to taken months And

two-player be or close is is U.S. a market Our come. category highs. to of the all-time going tough there some a be to to we continues competitor, is effectively. bookings for position to a terms share gross competitor But in who who we competing periods And think now have at

All right.

much. you Thank very

remarks. question-and-answer This the now Khosrowshahi call to turn will Dara concludes session. the closing I for

Nelson heroes. terms Everyone, result operating from big us our here thank for through of and of who team in Uber big, to a -- and but you get and thousands true very huge I right. ups income. for thank talk first-ever All of us, at to some Uber, it's the quarter are work employees of joining downs it, to the about GAAP taking much profitable the and you specially big Nelson and the

So hopefully, more a team Nelson. the to to you challenges big come, of thank ahead thank lots and to you but us, of

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

your disconnect now lines. may You