Uber (UBER) 7 Nov 232023 Q3 Earnings call transcript

Good morning. My name is Briana, and I will be your conference operator today. At this time, I'd like to welcome you to Uber's Q3 2023 Earnings Conference Call. Please note that this call is being recorded. [Operator Instructions] I will now turn today's call over to Alex Wang, Head of Investor Relations. Please go ahead.

operator. you, Thank joining Quarter for and to welcome Thank Earnings us Presentation. Third XXXX Uber's you today,

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

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

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

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

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

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

made to press from to XX-K prepared and if recent and filings more you please refer we other already. earlier with statements, release uncertainties differ most today, review materially well quarterly factors information we published described actual supplemental For about our Investor haven't as the website forward-looking Form today our documents that those issued as may and our and to to remarks risks press Relations in SEC. We results release, cause you ask the earnings slides

from call following to will over We the open let brief Dara. With opening me Dara. questions remarks that, to it hand

the a remains XX% of busiest in XX% as consumer QX, quarter outpacing trends in marks into Thanks, growth robust year. strong Trip trip growth the audience Alex. heading our very powered another by third strong from frequency QX accelerated gross quarter Year-on-year growth activity for period to and Uber. for was bookings row.

Simply all-time exceeded margin discipline, steadily the outlook to our cost leverage. built, our high. time. for At strong put, EBITDA EBITDA time, monthly Notably, same the growth per to we trips continue generate rigorous coupled X% first flywheel enabling adjusted increase with and is the QX us adjusted exceeded matching MAPC our

reliable with momentum year tremendous the exiting and execution. We're

free Uber that deliver disciplined growth to financial continues remain value. also sustainable demonstrate scaling scale. outlook We on QX and flow will results focused appropriately initiatives at and profitable making to QX that long-term, Our cash income while drive growth operating fund investments GAAP

Finally, I X the over contribution want immense and for to me company Nelson with and the his his partnership recognize years. to thank past

I'm ahead, welcome new Nelson thrilled CFO the great tomorrow, to our upon that to I'm starting he'll Looking confident has as Prashanth built. build that foundation and continue

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

[Operator Instructions] Barclays. Our first question with Sandler from comes Ross

and the business. just the a out bookings Just what volume see what the couple mobility third questions you mobility up out of look pre-pandemic years, in the now gross trip sustainable quarter? do bookings that versus in a of new you were detail the see kind biggest drivers on what acceleration growth of few for UberX do mobility with flesh drivers Could next the you as as bit caught gross over in the more of we've little we frequency, areas? And the

absolutely, Yes, Ross.

But a a on board pretty on every product. accelerated of year-on-year to absolute basis are These regions. in terms was couple QX, in the listen, areas Asia across between quarter and pretty So in every and the out single the numbers. Pacific QX strong geographies QX substantially call geography, much regions the LatAm single of big

in those of penetrating. of early very were kind some And countries

are penetration for is rest rate where and compared the example, of the Japan So our in world. we miniscule in to South Korea,

in the marketplace we're And large again parts example, newer Japan some are and building taxi and that products hailable Hong of Kong Taiwan and of out, South for very Korea. the

in in markets. growing Latin other a products very, America as very Then which well, Moto, LatAm X-wheelers number are are we got and like Brazil, quickly that of

strong, super like and then very, APAC broad, more the out. strong products was broadly, particular, growth some you rolling partially had if very the because of I LatAm And of do travel. think augmented the while that by we markets, a look pretty that were So newer in we're summer

travel, booming, And travel then and strong. very, has Uber the know, been all travel leisure seeing going consumer. penetration back-to-school a you of As high very what very now also has absolutely we're is

strength absolutely that that its to and So added frankly us of our strength. in QX surprised acceleration terms

construct, business business forward user kind construct, terms and of mobility of right? multiyear, then construct business look the from going we the do the we In tend business how mobility from and a the about think to a growth at

grew year-on-year earners So from on to that the basis. this added a growth, is over core platform. at our a over on the construct, marketplace. adding business #X UberX on now million of drivers up We about year-on-year platform, a -- And a driver is basis, XX% and business X.X is XX% we're this for more supply-led

come add ETAs liquid, the As we more surge demand. gets drivers, down, that more pushes marketplace down, essentially come

adding the drives So drivers more marketplace. essentially

is actually product base we hailables is XX% Share over on basis. taxi, strength our these $X now, new some is which growth and have, really great, low-cost years, are the that initiatives a businesses products, and billion we've that high-capacity we business, reserve past products and that well. in are That as UberX X-wheelers, as for the our Uber from built Then year-on-year on These seeing have X. of that X-wheelers, then now X top vehicles growing collective such essentially is Business

penetrate X are big where, weren't top grew then know, Spain, Turkey. and got markets. XXX% on Argentina markets just to you very we've year-on-year GDPs, model we Germany, that, markets Japan, those South of tuned as Korea those than able our more that a And business on the ago, basis, and you've in These with years international to into be

a of business base kind by driven got you've really, So supply. that's

billion got too. XX%. have markets, new that run you've GDP On we've top then that, rate that growing got very penetration low are $X big international you of over annual a of products are And these big which bunch markets

we and that's audience, the view, consumer new from business driving price as frequency the is then and And about construct. look that actually that's the driving So a other well. business way then at

international these many think our So that that you U.K., in we audience, on comes taxi village getting the audience of when to that's if audiences. markets we're the small new them about all new to, a entirely markets, a platform. Or introduce into are new of

when think about about Then we audience, we think demographics.

we're lower-income So et like like Reserve, higher then for actually for high-income example, that UberX we're is seeing Reserve usage for the Share, we're where introducing high-capacity consumer, can And introducing cetera. products more for consumers, incremental. pay vehicles, reliability you and

at we So demographically, we're then And age. expanding. internationally, look expanding; also we're

use as adults do, teens as for is they much Uber So they'll Uber just up. like great. teens, turns for we to use introduced out we to which think younger as And grow it consumers, tend continue

us, global, So have income which that's level products and for X all we of audience age, for and the kind of specifically is construct those.

monthly frequency, of on And our use a then X/X you users when into only annual us basis. get

So Membership increase that our job is is to very very, a X/X. there. big driver

you million XX Members than -- more As One Xx now nonmembers. Uber got we spent members.

So frequency naturally into, the membership as we penetrate increases.

different up more, more as the more Xx as That of mobility we're to All if is delivery seeing on use like example, and who frequency introducing in they spend users we're frequency products as that also drives Reserve, for and tend platform. mobility, spend well. X to well. use product than well, cases on the take They what X then that drive

a price and been going year And you our then grow well. services But I price has this thing. flattish, essentially inflation with that's can forward, as think expect good to along

speak, kind to we're get you So then pretty and price a takers, if so construct long prices you're term. driving of audience, good growth driving the frequency to over

Nowak Brian from Morgan comes with question next Our Stanley.

I somewhat X of sort level, Dara. higher have

First you want examples see still into written so to et conversion done potential types Give where more been on to or of look the platform where And platform? second you the kind as of one, about on the extensions, travel, is far. press do mentioned the improve matching, you'd of a product new able there's us that ask of to cetera. analytics then be learning improve that improve lot 'XX? And data opportunities the all, in you BXB, sort some on I of you've machine you

you next needle most move have As at which of these, could you sort the years? that the these look of new products potential couple over of excited

Brian. absolutely, Yes,

on think where hard ML we've improve I many and developing been ML machine front, it's many, every years to say because in much the part using it's business. for Like pretty learning So can actually our now. of

Just earner for a like on-boarding, couple examples be right? of that might take You granted.

computer the drastically, like so reduced we're is technology -- what recognize allow well. machines reliably, errors onboarding documents essentially using time them be as accurately to be now more onboard vision to actually, the But and could experience that to machine we're your transcribe learning reduced can using to

That's one can. better So can read documents essentially, these than humans machines example.

productivity GitHub software On developers. for the we're rolling out front, Copilot

productive made because X of already our Copilot platform than average developer as in tooling, much we and we've have our We mistakes more and well. hopefully productivity they software will years will now GitHub ago, think that seen, reduce also improve on were the that investments is

debug is tested, will that of they algorithms et have ML kind So before code developer cetera. code

that business that's our think can we So increase well. -- as of the productivity

excited We're conversational about pretty support.

all They essentially calling do will about, giving that issue we'll they that on to be service around the world. about agents. customer about customer chatting what might customer will our get on tools or details the language-based be policies our help go large are the through these So based particular and history, recommendations

Humans these have to kind through all kinds of go of policies.

Now machines eventually, well. front going customers recommendation. talking to on line are machines be humans then they give the do, our And a as with

advanced year-on-year algos these for improve delivery marketplace on neutral of using matching, generally say, on or of then basis call accrue all incremental delivery per reduce, let's the millions the And transaction learning cost bookings, pricing, on I'd dollars matching mobility we've a routing, machine either improve and algos marketplace, the been for and it of of hundreds can space. algorithms to for VC

where are these is working of ML areas the out. some just So

for across But anybody data, listen, a wider is technology, powerful period. because us, more far than ML customers range gathering more in are the the of And player we're we largest world, a else. behaviors

ML a engaging Uber speak, in mobility important, more so of have in that because becomes both think really we that's and we and the set including delivery who becomes stronger, the So to customers marketplace. data competitively the are unrivaled, world of unmatched where

it's powerful. So pretty

something that that's In very terms for is very, promising. Business Uber seeing, of other cases use the listen, we're

corporate definitely with to we're Business, penetrate very, their travelers there. But promise. hold space. of saw now road at Uber very are on looking transit great again and verticals get health ton well an see to and a the It's also that the and continue as into healthy companies We uptake for we like

typically travelers much being we've talked kind is Uber very And of old days. footprint. heart signal travel me, for Uber travel my something and in strong very about Expedia very, For using that's my of because a because global our of

nearly users quarter, amazing. by Kind XX% were city. of here. million of of globally In XXX And their primary perspective city, took about is primary of XXXX, our every trips taken out that's consumer domestic their a trip outside pretty which

lot kind of So good our to tend that segment users, target. for they're earners, a travel and high-income they to becomes a us

in flight see, U.K., for example, about We've some users travel the in XX% and done and now trains of XX% and we're U.K. book signals users users of repeat of quite the in U.K. Uber coach well. the our our can optimistic we where the you as early and so are buses, train business on that

the But product, try to they coming big a which have audience. they're we the because more So back great. product is importantly,

growth for avenues multiple one honestly. and many are amongst got we travel just and business So

with Our from Sachs. Goldman Eric Sheridan next question comes

ones Nelson Dara, first, One Maybe forward. thanks you. on conversations insights the Uber for I wishing think Thanks, the for over best you And X to and picture and bigger going all One. years.

of about are thinking number it how to market That's and that that the ahead? about bringing than subscription As what some into years might to of scale continues globally early in and now build, to early that the years the the have business base more translated globally learnings for subscribers scale what one. continues the in you're mean

you where were of on driver different supply. a using were a year position then a We lot very And incentives supply. on driver ago in

out things how optimizing and come period driver supply we that normalized, of efficiency, you for cost, thinking As are insurance. maybe about have even

about thinking going initiative be So an should forward? as we that

Eric. Sure,

And spend for One with for goes So that higher as consistent pretty Uber say example, XX% retention us as now that amount The to has expanding Uber Uber there, into that members than on remained. There lessons One been consumers is a focus Xx behavior a far threefold. One come markets is One darn One, Xx the nonmembers I'd more question hasn't versus the basis. honestly, One that learned do some That base, as more we of hey, is a well. the Xx, in customer Xx have is to, has pattern the The nonmembers. but monthly as Uber for were and And going and keep user down we just expand Uber to retention introduced as geographically. continued. happened. XX% couple

So got you at focused million One benefits Uber XX countries. Number when nature. in look now XX monetary on the we've X across And typically the are retention. really is benefits, members One Uber

on you you discounts get food, get free, cash So you mobility. on back your for delivery get

there are that want Those nonmonetary very to queue cars is are also provide aren't when much advanced matching, get let's forward more members ahead cars where say, we nonmonetary the that matching appreciate. in we to our an that of upgrades benefits do around. that What many think going you nature, airport benefits into different or will

design the higher, can drive want make also we member high always growth, but just retention that member to of want to as is well. get retention. sure not to spec we always kind driving levels drive are And Retention there and they we're

Delivery optimize really of area penetration. the optimizing and lot can use earlier the in mobility, With mobility more mobility XX% of we I than account third is for to member think of terms the members continuing bookings. our in a much for terms already And it's around It's do experience more in users that. just And mid-teens. case.

question. supply driver the to Turning

earners. million would those I say We've Our this constant it's a actually up supply quarter, is been. X.X which best that over billion, earners $XX.X are XX% And position basis. earning on got is the currency

the that than actually in the faster being up in earnings So not of proud well. That are we're largest really same that's we're optimizing fact line are earners of earnings one our the largest super the which world proud time, flexible costs. the around our of. platform that cash is way said, if a earnings, gross the we're driving going attractive something free bookings, And bottom and at as investors, for flow we and

we So incentives we lean way don't the have did that to into previously.

about down hour because about per you York for it's marketplace Globally, of earnings at if earners, natural per levels the utilized spend incentive our liquidity it's about year-on-year $XX here on of high basis. U.S. the $XX in look kind a U.S. XX% So the with City XX% utilized across hours. down New the at are It's in

delays When example, were That incentives us levels check, take we run also allows other high. a running we a qualify, parts down. But for that background driver, we're don't if highly, that earning on a well. is background background we driver So to driver, working of say, we that the earner if for we qualify a delaying if interested highly and on-boarding check, background efficiency. know check think check, as can a again expenses running let's

so cost to So so business across and there incentives, far, the the not earners bringing looking we're just up on, optimize good.

Ron with Citi. comes Our from next question Josey

bookings wanted these Are the a opportunities to specifically Comfort, how any versus rate talk along at meaning more gross creating ask little new UberX, any those seeing billion Reserve, others, demand Green, that these non-X now lines? about growing XX%. of greater other And are to offerings, run demand? $X I new about things product bit us

absolutely. Yes,

in and these demand, products So are new ways. create demand they different creating definitely

if into taxi. Japan coming way actually, the the that product, percentage of about markets is can in you bunch taxi represents. we as or example. number, hailables the bookings example, an of it's of a for That's twice new those through the percentage in gross customers So penetrate only because look markets, taxi hailables, at from

local in But the actually supports very, going supply, we're small, Japan in actually, in coming of We kind the taxis joined with association new introduced And the brand-new partnering just whole a Japan. a are peer-to-peer high-end as audience business. well. And taxi well Japan essentially very into in to those have We tourists as taxies Japan. economy. us

audience. new Turkey, Argentina, models of new in So essentially in entirely audience. bringing that's where new these business That's an parts many are true

The are I point that would products. other too low-cost out one

for at kind is some It look Share, example. of you see UberX to from Share We move faster. taking UberX trips if lower away do business. income our UberX So

providing So seeing hardships on and the them inflation all that's there. of that economic relief we think kind the based we're

lower-income So again, audience income we're newer, it's well. Same Uber, UberX couldn't well. a for afford but introducing Moto. a absolutely And of X-wheelers Uber seeing previously Share that to as us as America. are audience in consumers higher Latin penetration also thing can afford in now lower new These

or these of frequency either formula. or terms all our they're audience growth in of long-term So strategic both. obviously, And drive

with next Anmuth question JPMorgan. Doug Our comes from

going One X see of you margin improved about at for achieving view How compounding X% the primary for profit over And Dara, do you opportunities is into investments what biggest the you you've forward? where running incremental operational key do in across just best as currently 'XX? Nelson. in Nelson, And the are significantly hiring you're Dara practices? about and past thinking some XQ. year, advantages now

Absolutely, Doug.

in about I'll the part important I what advantages, in of terms was a which of compounding So go business. terms to back more machine is of becoming talking much learning, the

look based for on points that price time are is opportunity see. drivers is can And Previously, -- upfront accept where in time to to just to paid that powerful destination more right? Drivers the can we're restaurants match also Anyone upfront for a distance. eaters we on us see opportunities to you pricing, made, out benefit the based can drivers it and So for distance. huge trip a business. that of and terms couriers. or and driver they But at if a to very example, or riders change our of take on as have and a had trip. destination price very, based driver their we data result, it another not price accept It's that drivers,

that help have certain and a you calculate doesn't a of amount the certain well. data So mile rate you time rate per as

So scale. of there's kind benefit to X

that where know destination, a Now can out their destination. in price drivers world we

to opportunities price. more have We

have We anyone else more the drivers in than marketplace.

price are So That as bigger on else to the and of are we'll kind learning more compounds a which accepted, data well. based ones machine be trips, than not ones which set different it particular that ones which a able as world. our canceled in out advantage anyone about trip accepted, match driver learns platform to are

our So essentially terms terms now in are of in train of in all larger mechanisms routing, marketplace we matching, estimates a terms of can on of pricing, anyone that else. than database point

aren't If out at payments, partnership terms example, most there quarter, we're a bookings, players look of a new in of bookings billion a ability with in great the for our our we $XX size and largest to PayPal growing growing. rate -- announced you one players that at in

on compound. payment than think cost for we So that's payment going side, other the we lower a can players, example, secure to

If and go reject in identify, to let's we can maybe so detect of good learning, and of at and being fraudsters try They from patterns differentiate like we them folks have out there use them of activity, cases, you look can and fraudulent are bad both machine by across the the lots folks our parts the greater from detecting there. armed delivery, folks, platforms. are set steal that other bad business mobility a say,

business are over them different the an got compounding by parts the most And ML world, these advantage again, way are data algos powered smaller of learning. one the your other. machine if players. of you've Many in have All the typically in of or

and been in if as and last our public, think I And our at it. line again, you capital out at went the Dara laid if company, talking balance of ability with targets about year. in been constructive, you allocation we've know, look line very, terms we since we guidance, and process, to about Doug, you it's X-year very our of growth overachieved the every performance profitability, at have the the So bottom if you the quarter. And very, top single look

our the business were mobility a QX. You invest about up of business, And gross and businesses. continuing we're talk that's to XX% is heard some lot the where going the Dara in bookings why growth, the in

see both bottom initiatives the are think you it, where line some we're we new if the growth So scale. on but future, to starting today delivering investing of for about these

bookings New mobility of products, gross rate. run sort $X billion

New verticals gross $X at run rate. a bookings are billion

while delivered delivering the bottom driving operating we're growth. So of We've lot line line. delivering the past over cash income, we've GAAP about years free We're talked as flow. top a X

so as going terrific business about shape we're is beyond. how And 'XX and you into the in think

growth our little are a the bottom are allocation capital we We certain to on we again, model. probably we optimized but fund And make balancing to able sure do deliver initiatives.

a headed. vectors as where of So heard you terms of bullish we're confidence have, the all commentary Dara's we And from we growth have pretty company the on lot we in where is about are.

Our Benjamin from question Black comes next with Deutsche Bank.

Great.

obviously but regulatory You we nice New last directive, DOL in platform Prop on win XX California. the have York still week, the a scored EU in

be great employment of the of front? would can lay you in sort the you sort give regulatory do on feel And land of any operating comfortable So a outcome? classification it us if

quickly, there? help from And to size have companies. since began? there in you of are conflict demand sort East any your just the Middle we've impact then heard Could exposure you other around the the travel concerns crisis seen And

Sure. Absolutely.

the regulatory of we terms I'd framework, regulatory any in operate can the say is first under So thing framework.

constituencies drivers couriers, forward. It's while platform other is we to them minimum able earnings picture, right So earnings framework if is voters with framework in XX that that we other same with on this the for And world state-by-state which flexibly model, all the out be the in our for AG framework for get such a dialogue protections there. the as minimum the earners moving is is protections, it's and to voted entering the for towards basis. us, example, with provides benefits I California. And and into for insurance country-by-country are basis and earn to as think right on well, generally, the think going York that the solution DOL big protections. And or really framework New look a settlement that flexibility preserves and important earn benefits flexibly the there on Prop providing right with to

do on as drivers There This with for are to some markets are well. our are markets markets. are contractor employees fleets. fleets, businesses, is forward. fleets employees profitable plus of right business. European We we our platform European that consumer some And where as the and in fleets model flexibility end the these price example, of, model which They higher is with of contract independent are these well. The the they those markets and drivers, where miss frankly, in going is have end

way framework of end states protections. And to are our I our where countries, Most in generally, say the platform, in are this on out benefits want to there East. zoom they terms they our work is when I platform, -- is that whether most or world, or not whether whether see about or not. It's or earners our not or platform, we market want to the if on to on about and we work there on flexibility, flexibility what platform absolute exceptions. not not, moving price across we're So of then the would the a to and have in work that work Middle business direction the do they our regulatory that the the not plus consumer. And want

of business. bookings So about the the overall about -- of represents X% gross Middle our is East

a relatively part small our it's So of business.

Middle East Now are parts quite certain the profitable. of

to So attractive a us. it's very geography

affected of we don't But we Generally, I operate Bank, not seeing small of in are the compared out. that directly. in we is East, so weakness the one don't a would in weakness business. We the in to any in rest we're Egypt, countries is in couple Israel. that any some way East for see very Middle very, operate point example, West Middle the And the

saying with travel? Uber we're a companies cut up, spend were general travel people kind travel we We in were just either actually, going the And that forward. judgment is bit quite worried. your contracted with we're and cut Uber whereas of or use for necessary, on our travel? little which segment, our acceleration back company Will let's of a when Business Business, of some back Will now encouraging seeing for travel seeing on no

next Our Fargo. from comes with Wells question Ken Gawrelski

the Two questions, let the reiterate. And Thanks, years. Nelson, may. if me for I over partnership

First, macro I you out little could But exposure. you bit talk just a Middle a broadly. about broadening just bit know about you -- on talked the talked could specific you little more side. the East talk

Some think peers think do question into East the impacted? weakness the have Middle And is you in seen broadly travel-related the more share I macro guess how Why of your picture do you October. business? maybe more quarter-to-date sensitivity ride broadly then growth there hasn't been about bigger economic of the

growth, opportunity balancing versus please, how take growth to continues think about a do rate question, use and cases driver growing is then expanding market? you second active addressable the outpace trip And if the potential

Yes.

anyone platform CNBC found we platforms, We across listen, And and news, in frankly, spending read it. consumer our we've for So been else. like haven't of we the just both weakness mobility general, pockets looking watch delivery our platform.

reason two, that I not is where U.S. on spend, the consumer consumer of spend you is one, look services spend when pre-pandemic I on think incredibly at to retail, was. you at the the part back strong. on services is bucket, look consumer think if spend spend versus And spend within still

is could going forward. that of of we on difficult services we do that type that very product. Uber And it terms Uber continue local tailwind spend a It's continues, predict. the to there is in -- think have seen we've what So seen with

sometimes they periods big elevated it's risk, perceived vacation So consumers it, their spend call of a product, higher, whether do I think booking or that house during back pull on renovating food, that go delivered break may times still go they they Sushi to uncertain but they out they to friends. treat to still restaurants, themselves them or higher during not, their still see

out the first. I the it's because macro the resistant relatively uncertainty large us price big, our of get think So business nature priced usually product makes local to that

absolutely to generally a In active we are term time active We because point do keep right -- much thing faster period. compound driver at to that's and is for of think is as -- than us terms possible growth, trips. this allows longer long driver take rate want growth we the growing as the kind to of low

substantially [Technical spend take said, of has are And pretty year-on-year incentive Difficulty] incentives a been we basis. Now as rate. our down on

that so on take rate. a our is And tailwind

that it per more can because But maximize growth, do to earnings drives be flow is going to us what rate to cash free forward. otherwise, efficient a share long-term want maximize we we at long-term take as business lowest the

So rate kind to when because cycle a take the going to opportunistically try way, moves if we cost the move of other not going and structured low to base. hurt the it's way you're push other with is really not it

with Our Morton question MoffettNathanson. comes next from Michael

Reserve of comes bookings, talk in in opportunities we're demand from I and airport market Wanted to the are you've the the seems past, about And this maybe a then more the the Reserve other of to mobility bit aspects rolling the overweight mobility. now, seeing like time think have quick enterprises. of airport opportunity, this a as historically percentage a impact of love Reserve like for could know, new the growth little your Dara, to product business? it about love get, solutions believe of needs lot looking some for has see to of the penetration outside a how In you've more how a one. large made would aspiration some the you spoken meets of large progress And could travel kind offering about you total been airport I'd and It you there's On but trips. bookings? And the sophisticated when your second large really enterprises, question, out. And how demanding SMBs. to it product advertising for they advertising a then lot learn since product, just on

update as any be there would well. So great

Yes, absolutely.

of of the a to Reserve out of significant is So Reserve, the development. pretty it's airport. in at now in continues terms legs X of very still very, But terms account grow for listen, early rates. Reserve We typically X product, promising

to you cetera, cover go picked you get typically et get out picked you and you back X airport, If those then we X come and of up, only the legs. up

significant think airport penetration increased penetration. a and us, opportunity is we for early in that we're that absolutely at very So

as while at that who home, do of on airport up the more picking think a I in it's dropping your lot at airport. or way the the off hotel in think I good Reserve your your product, airport experience you rider we do to getting very terms at can at for the arriving back, and a is picking up

flight your the knows you're in that for cetera. put you so et driver We automatically when information have account arriving. delays, We

You calendar can information the upload from your our cetera. et onto Hulu product,

-- experience is frankly, it's airports that done improve of terms lot hyper So pickup be generally for can whereas I the where the arrivals focused of something we've the pricing and really the some we market, I there's pricing were And of in we optimization algorithms best supply that now to area in on But a in for finding airport that we think airport done. There's have generally the on. think airport the terms experience. we're breed. is, pricing,

optimizing versus are seeing we use some reliability. there We usage Reserve about cetera. trade-off think going the types it's of is et cases, other Reserve represents that dinner, UberX And there, for a the to premium And there. out

in quite going is demand Reserve, over the the high. be XX.X% UberX reliability want on to you premium If

and lot segment on that market-by-market we done price can And a maximize and our what's basis, on a there. volume. between And by reliability a kind to again, to of more optimize consumer trying we're be there's optimization basis segment that consumer trade-off think reserve

that SMBs, advertising for this ad sales on I audience your revenue excellent. et of point Return cetera. at are on a simple sales on and pretty majority of to average, is entities, your return the spend. terms in pay is large on model. It's spot pay from our think business for are question additional XXx The In Xx ad ad anywhere for

which for product, our partners, great. this for So very a is is our endeavor profitable

advertisers. able repeat customers building customers. be, example, amongst more our the customers new for are then and frankly, target We larger new to when other we'll products, that, to ability they out being those our advertisers track They technology also smaller become for offer to sophisticated may

loyalty to those that integrate of or their Eats membership direct example, as their in with Uber relationship Eats consumers members can for products, that grocery to so For and go way, programs and kind they through build loyalty well. can go is get into the they loyalty

helping breakfast advertising on of are not it's advertisers and may, well. building our increasingly sales breakfast working on and allow advertisers introducing, certain larger as also advertising for We go out we've with targeting example, that to the We return we're tool want ad larger can help promote we're want the sets kind really And larger then incrementality of measure to promote the just well. that of and over because as had we something advertisers. They daypart dayparts.

all advertisers, So segment importantly, Uber our just higher well. are those business, relatively of are for course, mobility advertisers both as newer to our and in tools, business. and but going into in our penetration the get branded Eats the these tools And larger we of delivery CPG a as segment our think grocery got business of we

So with in we're which ago. continue a be our progress. And our very, years target well there's business. was business plus, lot our set to way we few $X very billion we on potential of for we this And ad a to pleased think that our

in So midstream we're its of nearly even development. not terms

question. Next

X think I got we more.

Evercore. Our next question comes Mahaney from Mark with

Two questions, please.

then the options, shareholders. think next update think you'll the point next X% demonstrate flattish keep a operating being announcement sequentially at should capital then, You about roughly further to ways secondly, you percent provide earnings for are now just talked you're what for an returning -- you call, Could Are the headcount you over talk foreseeable with that I to that? looking net future? And single-digit this you headcount range quarter, going where make and but about going low can on roughly options I a know about in that leverage forward. of or growing down to reasonable investors

headcount, forward Mark, with we headcount. terms So that do or flat believe of very small yes, the in move we incremental can continue to

are go what that's so we we planning And forward. as

pretty seeing we've in since continue bottom And know, you -- the and where held in of held been. XXXX we've headcount leverage, steadfast we you're line. that to get has pretty the As operating terms

we so to And try hard deliver that because, the again, continue pushing to is to team it. try maintain to discipline

of heard know, going capital investing, new to terms the by CFO. you as able in over growth we're before, you way, handing to the outline Dara While baton -- of partner I'm who's can. so my But the tomorrow over returns, in here, that so in who's stepping we kind certainly as

as So he it's fortunate to going in of shape, one Dara that a certainly the through. He's are priorities because that's first great getting you know. and he's walk business

are we now inclusion. know, S&P you for As eligible

We're way And really on matter corporate investment grade perspective our opportunity. well of a well. action as so it's from a an to

well. So benefit that get he'll as

And And so you be getting come the something workmanlike X up where free return he cash especially year, income to Last know, year. talked point. are, for to from been investors. We've operating some years on getting talked about about GAAP of GAAP we at in we our also is based will getting as operating This we talked full ago, profitability. flow. EBITDA understands projections income to capital that's the pretty fact that terms about year,

And be he you a know has next so I year return question. big lot in will at experience background, of capital terms if we And it. know of doing his a look

the I You life experience know doing past has a in the look will forms, whether it's and he full buybacks or that it. at think lot his of suite dividends,

he which that time, a that So that he'll February, be the believe next investors. will ready I'm when to in on perspective be for at I least investors addresses confident give

back any remarks. session. will the turn CEO, question-and-answer now our to conclude Dara Uber's Khosrowshahi, will This call I for closing

any Uber to [ to thanks They're restaurant which without a incredible journey. is said delivering who joining headcount, partners, wouldn't but whom ] down deliver keeps Thank us pretty able our services. And earners partner on it who then in Thank to an amazing. again, for All our thank you, with has it or pretty partners, everyone, team right. be to this flat say hard. this we before, been I'll quarter. working big Nelson, we you you of the these Huge again,

definitely is and best I last, for think the Nelson this best. saving the was

Nelson, without you. you, contributed thank the company. for So wouldn't everything be you've here to We

first I all, So this. of say should

So to commitments. discipline really, all really hope proud I'm work free really, that at against deliver really the to the to scale over years. grow the and us profitability maintain X The positioned done cash flow. to continue we've company increasing that's continues our collective to my of is well My company allowed is deliver

it's And into incredible really very Dara I the all thank partnership you and think, and an can of Uber of I'm his such a because me and about is work come that's company together do want the all for good shape, given opportunity, to verb and to ask in proud I done leave for. we've

for partnership partners I because And thank you. years. great thank over I again, the So Dara his a really been X lot we've

Nelson. everyone. Thank All you, right. you, Thank

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

You may disconnect. now