UBER - Earnings call transcript Q2 2019

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Operator

Good day, my name is Jericka, and I will be your conference operator today. At this time, I would like to welcome everyone to the Uber Q2 2019 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] It is now my pleasure to turn today’s program over to Mr. Schofield. Kent is floor yours. the Sir,

Kent Schofield

you, you and joining today, Thank to Thank Uber for welcome presentation. Technologies’ us earnings operator. QX XXXX

the Kent have CFO; On Relations. we CEO; today, Chai, Nelson Dara and Head Schofield, Khosrowshahi, is of Investor this call

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

to Additional which reconciliation with be I supplemental GAAP slides unaudited investor.uber.com. our non-GAAP filings to is the non-GAAP that a these are disclosures in release, including measures, SEC, subject press of each the posted regarding measures, you numbers remind of is included change. will to and these may and

intend statements to may. and be Certain be on deemed Such statements. may expect, statements can be such presentation and this forward-looking terms identified this in by call believe, as

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

and materially results about information issued factors more under filed differ discussion and release well XX, press connection to today Factors For filed June financial operations of statements, Form uncertainties that condition filed quarter cause as well XX-Q as prospectus we as the X, of was XXXX, Risk management’s as and that on actual please the in and our section the risks refer to from including our may caption IPO forward-looking with analysis in in SEC May XXXX. the results with on our first

the Following questions. prepared to call open will we remarks today,

to let me that, it over Dara. With hand

Dara Khosrowshahi

Kent. Thanks,

global all of choice XXXX QX made around people platform the of for and the We’re world. of we proud the becoming in progress the commerce movement powering towards

year we rate. growth our billion year bookings run to $XX annual on continued all XX% at overall with in quarter, of gross growth currency constant a strong of the producing During platform offerings across produce

up connection a made appreciation net Adjusted year award on active was XX%. excluding XX% in monthly $X.X basis with strongly and MAPC and or constant powered on consumers, or up a our accelerated year by driver currency ANR XX% nicely revenue of platform growth IPO non-cash billion, our

continued MAPCs had in as the the the grow with we year during into month year to the MAPCs, take XX% half growth multi-offering the improved the of Note of mark periods. proud comps million easier users, ANR we’ve constant XXX back accelerate announce we June. is prior the continue continue of of second growth to currency in that and sequentially increased to expect beyond MAPC Our half in to rates year we’re that the and help

Our QX plan XXXX beating QX to our of own the adjusted EBITDA businesses. handily internal a versus due big loss stable to space continues improve. to came Ridesharing million, environment be of our our teams in position across execution at The competitive strong and and $XXX improvement

We Eats where improvement will see to and some potential. we of but take to business plenty that continue lead significant incredible into competition investments capital our of

great we and driving often tech from have old-fashioned scale focus to bottom trade-offs to on life, aggressively can that While building invest effectiveness continue we while good believe you by grow in from efficiencies line. and improve to the make

efficiency the effective much deployment driven margin Ridesharing focus and was on and a incentives, QX in focus products. $XXX on products, Our contribution core rides America increased differentiation brand A more service, million platform higher shared categories. improved by of in tech and in of U.S. greater Latin

for than simply of Our ride discounting efficiency tech are volume. share driving mixed their and resulting volumes. more focusing capabilities in ride a UberX is This more rather energy profitable shift in share into teams

the nonstop second much innovations pretty as algorithms up exciting products the and coming the such in more interesting innovate sophisticated ride We’ll some year. with shared new continue in space pricing shared rides, half to of

Uber segmentation. seen consumer are on to emphasis our momentum. twice consumers great up March of Eats about you’ll Enrolled U.S. Rewards, recall unenrolled likely than users. and which in in XXX% as has rides available became use rides ramping both Eats users the also We’re to

just and Rewards suite of Cash, product our is broader Eats. including one rides with of products part experimentation Uber-branded credit ongoing loyalty Uber and in a Uber subscription cards

offering, solution Comfort, year at a new has for globally. year to on on quite Uber Uber our premium hit strongly basis. continues our economy and XX% been grew out a And business roll suite

grew Finally, our year Uber access that quarter. this on it over Health year organization improve to XXX% platform helps healthcare

to growth MAPC moving Eats. over billion. of Now XX% year constant XXX% currency $X.X to XXXX drive at bookings growth QX on gross helps year

our We rate in at expanding over take over platform now XXX,XXX the the on end restaurant with selection progress quarter. basis the XXX partners points While our rate. QX of improved take made significant restaurant

We Eats pilots, product the the test pricing engaged strategies features subscription, our launched several including with quarter during users. most

via friction, to reducing by continue improving our We APIs. and on point Olo such as onboarding work including integration integration efficiency through restaurant own custom sale partnerships of

restaurants more options and for to engage we to delivery enabled pick-up use lastly, ways renew personnel. to customers dine-in, own And even their like ability Eats

and such in the U.S., geographies, markets, selection continue partners online in in programs France, accelerate Australia, Mexico, in and of Japan, We delivery the marketing continue McDonald’s most XXXX, to category with restaurant player Starbucks, in the Eats on we’ll be invest one number our as including Zealand. New back number and two multiple innovation lean food half engine. to And in our strategic pole

digits NeMo trips in Berlin, in which currency QX new of bookings our XXX% best and Uber million. as growing We growth by launched to QX Paris invest impressive cities. in despite including quarter two see continued other innovate Freight great continue have on quickly our best at become soft performing segment, and constant And year-on-year to to grew $XXX markets gross progress XX quarter we triple market conditions. and

integrate chassis capable group, unveiled platform ATG’s Direct with car newest to with we self-driving the technologies advanced our ready SUV. first into our in Volvo’s designed system. the XCXX self-driving Finally, production factory, from is of the

Nelson? Nelson to now And details the numbers. on on for more some

Nelson Chai

Thanks, Dara.

was up billion, During year-over-year. XX% revenue QX, $X.X GAAP our

was a excluding $X.X of cost of loss our GAAP part billion, in XX% billion as increased loss Our of QX of of to EPS compares due stock-based in IPO and $X.XX XXXX. from of $X.XX from units $X.X XX% charge to compensation by revenues, a impacted was a stock GAAP restricted of which revenue QX D&A XXXX.

and For $XXX to of stock-based financial our operational I forma the $X.X remainder the compensation driver adjustments as otherwise excluding well such charge appreciation unless will key both non-GAAP discuss pro the billion noted, call, as as metric IPO. award related the million measures

rides X.X principally Eats. driven Growth First, year-over-year. billion, XX% our by trips company total is grew of growth global in international and

million. to year-over-year XX% grew $XX MAPC

strong basis We bookings additions Total in on Latin by the MAPC and the America. growth grew XX% to continued solid via platform $XX.X bookings Eats our across constant U.S. currency regions and led to new to see NeMo. Ridesharing gross a year-over-year, grew and continue XX% all billion Uber company gross growth

Eats gross XX% Eats that growth XX% constant up was is driver up the currency growth and a XX% was poured excluding constant platform space. up strong the and Adjusted net was ANR on year-over-year in currency or year-over-year was into appreciation a and XX% which the and ANR year-over-year a bookings amount Ridesharing currency billion XX% respectively Core or Canada award appreciation year-over-year of driver revenue $X basis. on Core driven $X.X U.S. capital ANR were basis. was and on despite is XX% up constant billion, by significant APAC, up excluding ANR award the basis. they

take percentage Eats did and which X.X%. of America. has Our in QX favorable increase XX% in of XX% use the year And rate which our economic of Ridesharing core Uber share Latin to the new increase Eats drove structure which XXXX from platform quarter-over-quarter due the conditions ride We growing fee primarily in improvement of and larger QX ANR the core the QX in U.S. year-over-year ANR significant of the take U.S. service was incentive, gross reflecting XX% this to particularly rate the a in was Ridesharing, take bookings efficiency, of percentage XX.X% as Ridesharing than mix. XX% in the launched rate more a core U.S. industry improved versus and as in lower end in versus

costs payment gross and and costs from revenue of revenue of QX was bookings. booking ANR an increased were insurance offset as percentage flat merchant as or gross in partner the revenue. XXXX field included at cost of as increase payments a in our X% NeMo’s Freight improvements revenues XX% are in cost scooter a flat Non-GAAP and of to cost and of excluding with Cost by to hardware of where Freights gross D&A and NeMo’s XX% was of percentage model due

to of This of X.X% was and last XX% XX% each Now flat net gross support as Sales ANR turning quarter of increased contact in XX% X.X% efficiency second increased head increased revenue the and and since on primarily ride support, from to XXXX. increased and bookings X.X% to as and gross well advertising quarter to from year non-GAAP due from adjusted rates consumer remain support. at of increase second versus promotion increase expenses. operating marketing XX% offsetting marketing bookings reflecting higher count. to an of Operations

to global more in for from was quarter However, sequential the and XXXX. put the more quickly marketing efficiently quarter In a the audiences, XXXX July, and an helped second of improvement across quarter-over-quarter, place drive we in and products brand expense particularly effort consistent U.S. first region. down promotion team narrative which structure the the of our in build external centralized

about As go the let XXX of marketing personnel, our of part count. to decision made head of total difficult this, we around X.X%

contribution on margin. platform the Now core

Eats our reminder, that at percentage ANR best a core businesses Uber the our direct related and G&A including and expenses As expenses other the of segments. Ridesharing as margin indirect but R&D ATG our unallocated margin platform generate does demonstrates to technology contribution and programs core platform include other and we not the

platform QX of in basis improved ANR, markets while quarter execution year. strong of improvement this efficiency led versus as X% Our and share our X,XXX improvements in margin this the ago, of versus plan to down is year against rides internal first quarter-over-quarter core percentage dynamics a an certain point the contribution in impressive

R&D bookings remained at X.X% XXXX. ANR gross in flat of quarter X% XX% decreased of from second to the and

the system and X.X% gross of to quarter invest seeing we’re bookings XX% G&A X.X% and our company, needed the leverage ANR continue XX% public from to we in to but across the in be of year, of infrastructure last decreased a platform. decreased from second to

EBITDA balancing to focus teams investments $XXX we beat due do and we to million. continue QX have lot to We business. We was our know a internal more EBITDA loss and our In handily on here improvements. plan strong of the execution XXXX, adjusted profitability work to across

unrestricted and the We cash and liquidity, $XX.X and and in with XXXX. ended aggregate quarter and billion July from in In both the we equivalent approximately SoftBank cash billion in billion cash $X terms proceeds restricted equivalents. $XX.X the cash the DENSO of received of in unrestricted Toyota,

be will balance QX this reflected XXXX sheets. So on our

and Now, wrap time public will for company. up by providing guidance comments as the a I first

which expect in reported $XX of For range estimated represents XXXX, bookings. gross rates, we $XX growth gross end billion to June constant Based to constant about of billion translates on bookings, to currency month to an XX% our billion. growth billion XX% currency year-over-year, $XX $XX

see continue competitive rideshare the dynamics. and balance year for to markets the monitor remain the of stable We closely the

Eats raised funds its in as be growth have growing to fast The continue in category. market competitors will competitive invest

the growth continue for the strong career seasonal see when cost fourth the and expect to to of increase will including invest of in balance continued XXXX year. We

a marketing to reminder, the expense. back net sales platform half rates That expect of for year. directly and As most adjusted in said, take and revenue rates we being improve the intensity impact competitive growth our

billion loss $X.X For billion. between XXXX of adjusted a expect the EBITDA, and we range $X

are As additional a company, guidance. public we newly are we also providing

diluted compensation, For XXXX QX and to shares. X.X QX billion stock-based to to average we million expense be an $XXX and share expect of count billion weighted we XXXX $XXX X.XXX our million expected basic

business investments profitability This guidance out. full EBITDA our will infrastructure. the the of continued year believe rides Eats, Other and in prove reflects We Bets, ATG

all quarter. which up second excluding the the includes we have of the fact take the the our been a and approximately tech loss entire unallocated would and In in supporting in corporate contribution The quarter, expensive rides is overhead, ATG. $XXX if company million

Now the for up back the call. to wrap of over Dara

Dara Khosrowshahi

Thank you very much, Nelson.

and for with let’s with We pleased hope progress deliver to quarter. that, more for up you our We’re questions. open this

Kent Schofield

are now Operator, questions. Dara. we Thanks, ready Great. for

Operator

America Merrill Your Instructions] of comes first question of Post the line from Justin [Operator Bank with Lynch.

Justin Post

top Great. line the line, about guess, profitability. at Thank close the question. balancing drive results, beat bookings and riders I thinking you the bookings taking my to ability your but to forward How you are looking London, Dara the on then new large versus in you. the about competitors How do in And the different of going could you Thank the do that right how bottom think balance that decision entering make situation London you some that? now? line? feel when about you drive and

Dara Khosrowshahi

think Good of more balance line Justin. a Listen, between you an and rather top question. the Hey, than is science. know I the bottom the that art

So formulae our XXXX, said, we for I you you. XX% of to on that QX, if if you trip QX. growth told lying here, kind look we’d scientific QX year-on-year growth trip had That I solving XX% XX% we’re at that the a of was XX% QX, be

that scale leverage more of with do the our at the just spend rare more it’s it’s marketing on and these kinds less, kind forward, there’s we our working incentive marketing we really spend, are growth scale, down channels with business to doubled think that that our be look on to and spend, incentive efficient So doubling this spend us. can of or how at we smaller kind of or our find be going really our opportunity we the down think expenses efficient as projects for

think do spend So far tradeoffs our tradeoffs always right, efficient while I we if and/or are our there get that that more scale to improving be can life, marketing in the think we expenses being flow incentive business. actually make made and where efficient drive the we we is the able in can jobs the listen, at parts be confident we’re big-time on the company. the maturity positive, to all company can of line more and growth team that on bottom getting line And focused top at of cash very while this but

a goes, I listen, competition for think London as great the far is us. as London market the

build We the best continue constructive are be intend trying a in way. partners our regulator with there, to business our to and TFL, to excellent

many, we’re in are seeing Paris frankly The players new we’re competitors many competition those with. in London been for that against We’ve that familiar competing years.

is in constructive very Paris position Our quite a It’s us. for strong. very, market

Ridesharing, competitors multiple So category country have in to of with in. a going compete we every we are that

We’re going that’s seeing and in seeing far not not or competitors in have all like that But cities surprise markets multiple London. XX anything in around so a we’re large London Paris unexpected the to world. other we’re

Justin Post

Thanks. Great.

Kent Schofield

Thanks, Justin.

Dara Khosrowshahi

Sure.

Kent Schofield

please. question next Operator,

Operator

Goldman Sachs. Your Terry next question from comes the Heath line of with

Heath Terry

more it the and do stability. of how is a it’s Is space, sort qualifies main about in you U.S., what’s matter a as just of markets bookings curious, share Dara, revenues earning thanks. I’m – point on on the look to talked of growth sort of some particularly the call, a take reaching or in point of of markets last Great, as it you stability. of the about time, market like – and stability? of that to investment earnings of you a at of think matter or to across whether sort the competitors, how get what ride hailing your competitive the rate

Dara Khosrowshahi

Yes.

Ridesharing is faring how ways the it’s when our in we we this around. and And product. other getting we to – against we’re car competitor of are well. ownership think of faring the kind top listen to we continue look very And when at continuing category invest category, efficiency car product, improve our look in I – POOL at I ownership, of

that host other of ways age choices, is can You’ve zero city, own whole seen younger get as of car. a that in on bring coming to a this transit myself need people around their us so generation that

seeing some improving based market do category and time. we we’re in We And and going city now, to want big a Ridesharing, markets the But Lyft of seems our within picture competitive way, a period to multiple are path be other are but you in here that And is be category the a world. competitors any this been competitors. for generally and we’re in of you think so what and well as stable to many we around I positions we change. to on Lyft focused there profitable we for profitability and know, have – big-time on to on said, are That get as focused have are way similar around can environments your way. want many read,

Heath Terry

Dara. Thanks, Great.

Dara Khosrowshahi

welcome. You are

Kent Schofield

question. question Thank next the you for Operator, please.

Operator

from with of question the Stanley. Your next comes Morgan line Nowak Brian

Brian Nowak

question. two. my taking have I for Thanks

The think overall of And remember rolling strategic it first about profitably service any one that last you in other hear India on do next quarter? markets update ability one Eats, how options about any associated you the all to U.S. the the out think a at Eats And market? Curious called your Is impact from Eats. out to And or elasticity improve sort in it that into of year? in India to headwinds the then to grow fee. back do half potentially quarter as to ANR. there Thanks. more on how I you about with

Dara Khosrowshahi

where business the Eats on line business on line. at percent course year year bookings our top is basis. top of this Yes, And XX think growing to is that two is seeing learning. on very revenue some profitability standpoint the side. is testing They’re quarters take improvements seeing rate team row I from the that excess as and might elasticity, we can in but and we our you’re take this take executing in we’re be rate the very, rate that what The we service a significantly Eats are any on is a you the constantly from you on to substantial a as plus the found relates tell context due U.S. What losing from within it standpoint be fee, There elasticity and I can are improvement, of is, focused. well. the of in a of improvement the see

they’re at difficult lines, too this and that think we make. the trade-off are decisions decisions trade-off of scale, kinds of to at these the So, frankly right we’re kind that top and making not

look single at some – its taking market done of own has will We competitive has it markets. character, in Every these is its different learnings own environment.

point won’t single specific where at where be and every to and are to certain we’ll plan a markets plan. So in point, introduce there we data fees pretty driven this can’t disciplined we rollout we’ll markets approach are the There or our market. and certain

In terms market in India. the India, it’s on of a side big rideshare

I category there taking results tell of the with be the market. there. there’s number competitive. want there. number India, you big the so is bottom in position, game every three, engineering extending we’re single one and there. we We’ve great in India top lift the or happy a are now a And and very a Generally, will of team of Right is – to the There the I lessons them the the some category. got line very local now especially the both team and very, great India about line. But we’re in Right have are think Eats terms we two We’re strong a knows number what’s and in into we them. that competitors the ahead few very market team

same We’re We proven India. in local and kind is expectation side. the to rides, ability win a on in my company Eats of our

Brian Nowak

gentlemen. Thanks Great.

Kent Schofield

question. the for you Thank

Dara Khosrowshahi

Sure.

Kent Schofield

Operator, next question please.

Operator

of with Barclays. next Ross Your from comes question Sandler line

Ross Sandler

Hey guys.

one around and a Just that. then clarification question

XX.X. revenue revenue net So drivers and $X.X in million for take the if back net out or rides the or we riders your was the QX, adjusted for rate shares XXX billion

that if in up to mentioned that or actually want back up accurate right sequentially the that’s going rates XXX is and then to you XXX So go and so half. that that way take the to clarify handle so, and just

what’s Brazil any the getting driving half rate rides ride year. U.S., on you. take So of of back both with and take that up rate happening it Thank color the QX less in that, this what’s is

Dara Khosrowshahi

Hey, Ross.

Nelson, I if right. think, I’m you have gone correct wrong. the numbers me

Nelson Chai

is right. That

Dara Khosrowshahi

competitive I want is the or the competitive I tactics as are to stable in by think, as improving. competing our characterization, are which most think environment we’re of markets in listen, with on far the don’t market, the particulars or improving take we market into but which rate, get

take in things are the in are category. take the on that’s that we translating rides of most is And think if think an a out there quarter. those markets is remain I healthy same, trends the generalization true them. rates and that we’ll improvement that And into quarter

Kent Schofield

Thank for please. you question Ross next question. Operator, the

Operator

Walmsley Your line with comes Bank. next question from the Deutsche Lloyd of

Lloyd Walmsley

I Thanks. Two if can.

any coming First, mentioned can specific innovations you some the be would there half. of interesting might second Dara those you on share where or kind Is anything with in great? us there fall

secondly, second SoftBank’s raising process They put competitors. into then to a continue the money And Vision just in of Fund.

dialogue great. to you try in the kind you might a would So with market about just what them bring Anything have share be space. wondering more of could of to healthy

Dara Khosrowshahi

as in where with. of product to shared should going rides create on share is as and were rides Yes, efficiencies, shared I you innovative team greater matching if matching of order Lloyd. far I ride But kill POOL pioneer you share on side. in keys in begin we goes pioneer would – listen, expect rides their rides would the category, spirit We and shared marketing to wait the one the create in was And forward. and more the the innovation me rides, steal in to walk efficiency. that thunder shared the have you pioneering were the

in Uber to Van, high We’re vehicles, Uber experimenting capacity already Bus, kind example, for of

X-XX***} – {***Part

we're should amplified. to kind basically the that a think that every vehicles, of Uber It's market of people in our forward. effects side that into to compete go efficiencies, rides and because that, XX where Van be back and category matching. a technical expect high environment. sharing single we network our and has rides in where of matching it lot on Uber tend experimenting with of shared two a pioneering Bus, to the are van, innovation going there's benefits cities, whole to to And category and of rides we investment largest the for We're benefits volumes player, innovative a which benefits seat you riders, three example, more already people shared it capacity take kind spirit {***Spart-XXX***} in the in

we kind shared So the of matching year in technically rides. growth next to the half will I want you'll effects. back take think of more us phase to behind those see hopefully up coming invest that network of And kind we think tests the of

X.X ours. I inspired everyone may as capital great of as someone is partner SoftBank is raise work. far SoftBank been that's a ability and is that time said you and be that SoftBank the have think partner And awed SoftBank first as a as partner. we're of as else I as capital fund you, vision even that really I far global, want as I'm slightly happier a to so a and put the now capital, because that SoftBank's has happy has partner much at that to ours with and to which

I be think forward. to going continue they'll partner a

up sensitive we us always a as investment to talk them. when relevant industry and we to about dynamics, are to the to for We Thanks leave talk so the that SoftBank, are us we question. things

Unidentified Analyst

Alright thanks.

Dara Khosrowshahi

please question go next Let’s to the

Operator

from Your next Ron question line of comes JMP Securities. the Josey with

Ron Josey

taking Great wanted question. for thanks more. to I little bit a ask the

sorry consumer talked Dara, deployment quarter. this quarter about think, you – I incentive of effective to promotions this increased more

that to want little has improvement. promotion you as particularly a more talked some and down been Just bit understand sequential about

you. around should promotion information be and any just Thank So helpful. incentives

Dara Khosrowshahi

incremental spend return efficient our the is dollar of work, that inefficient and put details many into are next forward. of way two marketing to of worse. more to to of testing engineers going and an that categories. and efficient kind spend But kind looking has get Yes, got always because the on. tends incremental there competitive into And factors entering their always too spend learning going least we incrementality, One is you're into folks want be types side there the for you we've don't then

Rewards more designed the increasingly just So years. there. programs and invest are the not you've of drivers we and and I then hopefully for week, not next do that Uber in of that repeating month with over loyalty coming think to for drive volume or but drive got to investing Pro incentives And our two designed carries next for engineers loyalty are to for like are essentially they're side types volume but kind Uber on both rinsing marketers months money that but program months, our which designed

well. continuing constructive we always as seeing and better a it's The the combination marketing, same half a decent we process. and So that competitive general, science, think environment more in hopefully environment, us. to a the better for more At time better second makes than listen of constructive are be helps for decent

Ron Josey

you, Thank Dara.

Dara Khosrowshahi

You're welcome.

Kent Schofield

question. the for question please. next Ron Thanks Operator

Operator

comes Your with John question Cowen. Blackledge from line next of

John Blackledge

Two questions. Great.

acquisition may also the environment spend. the side. just First year for pricing the about to then or on in it Thank impact through and/or we ability curious prices just U.S. just spend as on Ridesharing second you. the the ramp marketing prices team brand raise And customer potential early how raising the change, any thoughts on

Dara Khosrowshahi

we I want remains business grow many our will, kind what about intentions seen our talk don't of I to as year to general years way as think ability or as as to pricing I one exercise going much many, John of learning have to and two, U.S. come. power other, pricing. best it And power think we to and far pricing service be for terms testing think, pricing pricing I we're forward. in way and the or do that in are think pricing too Hey we constantly that as the power. to power category what's have in the a But the in it a a this

marketing development And who were of us as how team about business and grew leaders grow, own early team a that based a local we Uber as tune at organically. the from our looking time of as some grew for we design as of to marketing decentralization hurt up, and listen, of was essentially, doing, what far decentralized our of part As history we years. And where came think really the the was sense very very, around served on from. and businesses of the very their Really more five marketing CEOs. teams businesses leaders we're the the capabilities as of marketing Uber well over become a restructuring on extent base period in to some city the as the how they it centralize company makes next consistent, kind

amount significant in Twitter, are from to platforms bunch imagine on technical Facebook, platforms. of starting happens, online wheel, And sense. ways Snapchat, can all A technical big example, as Google, et with and global global for online make of these these whom reinventing essentially their systems, local marketing global have are all did cetera, the engaging a teams, square own you one

So about improving the for about we're it's versus thinking about we company reorganization where for effectiveness next to years be the come five and where going from. is the

think, effective marketing that I speak the I the half years the the listen, for to a can't both is marketing spend, be in year, that organization. second actually is as making my few we're but going of spend the expectation our our of marketing And more increase and for next changes result

Kent Schofield

Operator the thanks John, next question for question. please. Great

Operator

from Mark comes the question RBC Markets. next Mahaney of with line Your Capital

Kent Schofield

line? the You be on mute. you on might are Mark,

Dara Khosrowshahi

question Can come Operator, please? to the why we back don't we go Mark? go next ahead and to

Operator

Yes.

& of question Erickson next comes Brad Needham Your the from with Company. line

Brad Erickson

Hi, thanks.

world work those amount I of the mobility on fair the having local cities. guess, effect I transportation around think to city being government and are broader of you level there's done understand, at in a platforms the

negative are and all here you conversations local some are supply in to forward. regards are we should either controlled having any cities with the and governments, about think in that how cities those you works or more positive impact the TNCs to relative are of those So going ongoing

Dara Khosrowshahi

different, we is difficult is and these great think transportation that I tell dialogue been in of have – every a to so many conversation I the that general, the it's of having the what global that dialogue can In with answer. you with it's city many and give Listen, actually cities you cities. we're every news authorities are constructive

us. consumers, fund And and fleet the it’s London, you environment, clean great of city. for it's think plan that I our plan for for if the great great at is dialogue actually for have we look it’s great London, is terrific a a obviously air example, So result a and with for electrifying which to

and and product feeding into a We in transit, for the great us, that which a think a thing thing actually public transit transit a city a as is again good we thing is with certainly good dialogue public it's operators are now we live, for transit that's have for multiple demand well.

We in effectively five having for in dialogue aggregated active that next personal design are cities way. traffic to will we but of sharing now any data. data don't data years Obviously share smarter, more for sharing terms our a allow the better riders,

that dialogue turn this some with dialogue think are are think constructive the having, not unfortunately, we we're I results. is what cities will the constructive. So into think we There dialogue whom

I New be of want conversations the And positive. the solution it think for next one XX forward majority But the partner. that a to them. York best their partner transportation these of is going as we And are for relates years. cities to

Kent Schofield

Brad, Great thank question. for the you

Brad Erickson

Welcome.

Kent Schofield

please. Next question

Operator

Markets. Capital of Mahaney line your with Mark question RBC from comes Yes, next the

Mark Mahaney

thanks. Okay,

have And the what could materiality the full legislation both people changes little Sorry these time just changing about these likelihood to could the from impact and a contract demand You Dara, of of about the on that. regulatory could the – been about what's Dara. of California the to just introduced? about as those the – over Uber could or you Platform of address have? City, outcome Hey, profitability please. of series comment with that pending employees New two California, New kind fronts, months talk then Thanks, the York in York City in talk happened couple bit last we

Dara Khosrowshahi

Mark. sure Yes,

think any changes of in power you've that New agree another And lot York city's medallion with. just The City know introducing the could the we the introduced articles you past and in potentially system in the system. So introduced and been of is essentially up. or a if New happened it's York read Times, be setting right the in don't have itself listen, city people by that I for abuse that that

not we because city can't New prices that look our areas of mobility business you growing a where prices. The like there kind result, can increases to in them. York, are healthy had significantly we afford Wakefield, we're or the is are consumers York, who continues the to growing city and and you've fastest while higher in price in our at forward problem Central the unavailable it increases if New it's Again got pretty that And go making of East Bronx as in areas the Harlem or to consumers have afford grow.

TNC So malarkey even that editorial drivers, And over [indiscernible] even I in the frankly. is and changes Chair commissioners, and of experts. transit appointed boards, think New they the – TNC the council, York community who good the and acted anyone and City changes groups who gesture and former you thinks city that are tells

York frankly we think New So we City. doing our get it. we are best don't in But

Uber We've it that to is think available open an I and anybody issues money who could hold good don't has our on been system. Uber where, when, system our the always we we can. our restrict to on any labor find of as potentially to wants make that can here And relates just New always that's way labor they one work. think rules for which system, the And drivers Yorkers. system, new been how

they're just As listen own existing We reason court. doesn't fact they there's drivers changes The into their value their own is far forward. value AB drivers they business, a tell of that employees. a AB they simply why the freedom, It the it'll in as protection like decisions the and are codification consistently immediately X, be legal their think way is that transform run kind our affect it minimum as we to drivers they their in that as but not And are allow their drive us, do better protections. can they that that think would a counter we of a forward These want. for however whenever frankly, system would livelihood. there want, keep good voice drive benefits the relates status, think that independent to status, or a they us and and It us that California kind boss, better X path earnings if of is text law. passes, Uber for

we a dialogue be hopefully to will that we're having way various And win-win. to there's get with win-win think forward. we the So And think there. parties

the that constructive stay hoping it's dialogue early. dialogue, tuned. a is but We're So

Kent Schofield

Thank question. you, the for Mark

Mark Mahaney

Dara. you, Thank

Kent Schofield

next please. question Operator,

Operator

the from comes question of Michael line Graham with next Canaccord. Your

Michael Graham

this Or London there Thank transit you've you. been there engagement platform with bit a public ask as of on some thing? you longer. Thanks. launching the I that of in in business is and to thing a way? either Boston. just part convenience or on wanted direct rider places well Any in primarily opportunity again, update mentioned those in a the rider a relations And is and a city little cities

Dara Khosrowshahi

options, Yes we and But transit is options engagement Michael with app. in which what app increase options our it’s early. are frankly seeing, encouraging more that very transportation more is super Uber

more in is additions, in very Uber scooters world and all et transit, the a more example, us these of fast even it's cetera, of parts cases Bus, category So bikes well. very, for certain growing certain as taxi for

we add options, larger a become a decisions. transportation As of more we in the in transportation population's factor percentage

period and for in simple a of that an a can teams about way technical you. time have over that and the products artful, choices We solutions these learn build you great personalize can

of higher in we with are in basis. good increasing good for our areas we And and greater of option transit us are just it's and think engagement grown and well. we it a other app listen, consumers it’s And good the global one the is for we've a city to as we relevance it's London the we some transit transit. number which where specifically mass think way for seeing consumers, on So think the in

this we testing products. these a win, is there's and early learning of forward think a going So, we one but kind and win-win, going be lot to of pretty it's as build

Michael Graham

you. Great, thank

Kent Schofield

next Operator, please. Thanks question Michael.

Operator

with Evercore You next question comes from the line ISI. of Benjamin Black

Benjamin Black

wondering an you seeing countries. the question. does you. focus What these work on some six the Where environment you of Where update countries? could was the give done? to be if are traction? I look for in thanks competitive Thank the Hey meaningful us incremental like

Dara Khosrowshahi

and build you regulatory is on growing Buenos to is world. countries. a very Yes constructive We be give can the market strong biggest in tour for Aires we to a a of sure. there the in continues that we quick momentum us. the fastest markets our around hope country one and that And certainly momentum. think Argentina Listen,

another is for market great Germany us.

We the been is city. Germany Berlin to huge business rideshare. are that bikes they've relates as been it a What's They’ve building launched Jump hit in in right and way in our our interesting we the in spectacular.

on both you And with with ridership it getting what into as an side well. product is we're we're I think seeing well. see us as well. that more certainly prevalent. cities, the bike our the in and with into Germany ride as in more actually listen freight expansion bike And Europe on side And Germany is

to Germany a So be market is we pretty us. think going interesting for

Japan goes regulatory both the to big couple a business will business. and we to regulatory taxi-heavy is the definition to market, continuing ride, Eat markets. way rides the that although long we consumers into terrific. that Japan build introducing markets market. will Korea, some ride These in in then the our is in tell flexibility Eats that then are are have and our It expanding far that in go I We means second environment think, Japan, other which of you markets. I be first doing think and business, the have well. improve, And Uber a as to we brand Uber the what to as in in incredibly of of model

as to parts. in good in But there incredibly well the the parts Barcelona has right Barcelona, We're and the eastern Eats invest well. category had Spain and of couple we're of were doing the growing rest in not honestly, a is well. the and regulations regions bad starting Spain great.

And so that's going well.

where story countries. going the six we are haven't all of different area they're work, most Italy showing take I pretty markets I'll promise developed They're we these These five all in big business think and are is of But to ways. around an lot really are take some there. the a strong. where of I big So but countries. a take

Benjamin Black

Great.

Kent Schofield

thank Benjamin, the you for question.

Benjamin Black

Thank you.

Kent Schofield

next Operator, please. question

Operator

Your question the with line Justin James. comes Raymond of Patterson next from

Justin Patterson

time career. how your course big of you Internet traditionally you've businesses the from of financial how Could Uber line talk over Great, with thank Dara you benefits? should variety we those involved a online differs very of scaling a picture And much. businesses? been one. think Maybe about

payments? a opportunities you're how as around provide quick about Thanks. an can follow-up, then And around update you thinking

Dara Khosrowshahi

first Sure. in you are there can in which unique I'll talk in the business. I Uber and and which Nelson, the think maybe any ways that, like is other beast side. ways a payment take Listen, is it on

that a business potential. XX spectacular be are we which and you, global that that I with scale a that along XX and a has the with percent Eats scale a carry incredible very we're heard there's believe profitable? out at way the if I'll business that have we I plus strong take rate to in others. that the meme we be tell at certainly think And And And rate, for very, a take a effect I potential. that which lot a of take a percent is should in a that execute, is has business has can bets network rate, think area the ever with making plus long-term. I same Uber around other categories meme turn goes rides business

compare to a rare businesses unique other brands of the those hard Uber So entity. in It's it's because one world. to it's

for all between customs, makes business, build the it those the interesting city, what's need that difference physical all connectivity world local digital that the once makes at I to every and extent as in single of local you entry relates interesting pretty interesting also this regulatory more business. in bodies think business, kind for of and it barriers the and are amplified about the some is to Uber and a the physical that we and very so we're digital the and presence and

very team Nelson, But very, my early do So and in we're you talk journey. about incredible that think I think well-prepared. are myself to want this I But payments?

Nelson Chai

script I been texts if million. to is contribution on what listen you if all call overhead in would a second the our deducted and our of strong second invest end we at so that which script thing $XXX the only quarter the the corporate to again we in rides we corporate you And very overhead, what the the the and excluding the ATG, to add is contribution. The according had from unallocated I'd rise that loss talk company about have quarter when entire

of profitability So bit it the on should sense give to path business. you the rides a of little

talk have But making we'll or obviously about we're of be it around environment. some were path market of autonomous. it NeMo of investments kind healthy and then guys whether or plenty moving we you dialogs And should and in sense give the Eats growth Freight the or in a in of the

partners Your reducing with expected has good our we've say a it quarter-on-quarter would second a better than basis. on to things. has we good of make is literally working terms and of the team payment year-on-year and on some progress. would able continue very we A have payments, to been done lot of And been I some question card reduce both it of the the fees. in a very,

of going As phase we to in the testing, towards we America. the are broadening capabilities some payments, out move the of Latin particularly be next

driver terms particularly have And again impact we think this will in beneficial of retention.

take try As of we cash to also offer kind some operate to tools of think benefit. markets like also we safety where allow every to more day and Brazil out them some that provides

Justin Patterson

Great, thank you.

Kent Schofield

Thank questions please. you Operator the question for next Justin.

Operator

line the next from Helfstein question with of Jason comes Your Oppenheimer.

Jason Helfstein

its the the to more to loyalty expect complexity of Thanks. term, Thanks, something is to just Eats, two term that? us that questions. given batching And do help efficiency you impact usage the repeat then near deploy other Anything on or delivery understand do the longer to in you dynamics impact retention? can or improve around Eats and share early program

Dara Khosrowshahi

as are I observing behavior looking far our increased what Jason as consumers. We're call really spend. Yes definitely retention, our programs we would loyalty for with increased interesting go,

both. seeing we're So

expansion versus other But we're like we what causal think correlative in the our that I assume the time. and see. and that should – because identifying takes harder you expect programs into expanding U.S. cause you it can loyalty behavior we with markets, of is

expect we couple we And to increase going marketplace. over build the batching each bathing using see efficiency the I in forward batching you past years. POOL orders As we're that matching way we're far the should goes, our now. the create as And think more as of that kind same of

Kent Schofield

Okay, question t Jason. Operator, next please.

Operator

Your Kahn of HSBC. from the next question Masha with comes line

Masha Kahn

about the for one grocery you to a maybe better of Can you could in the thanks Hi, or on about good you some country like And ask what user certain interesting some country Wanted comment others? reports makes than you Eats markets? Eats makes unit if aspects perspective other of you you. going perspective, it that. the delivery, a Thank very what business to opportunity. the characterize which the from

Dara Khosrowshahi

that that can as and that we far advantage relates grocery, higher high fulfillment drivers we advantage utilization driving. much as are as want look essentially can the and take don't we in at building additional to that of work I building we fulfillment than to essentially are take to network can are the non-peak have give network said categories and past couriers Masha, and times, too Yes it our during other of comment going especially

but have So grocery about could a we be look one definitely that categories take something something And could tell it's of hypothetically. it, you at. once announced we we'll those

Nelson you talk. to want

Nelson Cha

how city do fast there and Sure. just our strict more then than city tends to by lot And we're position. a country. be And competitive with just it to of in it has

a about take in you for would talk I you rate, XX.X% will, So Eats that us the quarter. what say if second heard is

world where but those X% XX%. the take If we and around are, you cities look five top at range between rates the

a it earlier see those low asked of and we again, lot very the an in where a And – India you some or take somebody negative market. attractive about markets think be you'll of very, business do have we But parts so have different can rate.

we're contribution. And where of very are the position, in the to kinds pretty those in category and we most see of be that tend we high so have you'll rates where ones strong some in markets those take

Masha Kahn

you. Okay, thank

Kent Schofield

you go thank take question. ahead Masha our the for question. Operator, and we'll last

Operator

David Your last the from question SMBC. with comes Dillon line of

David Dillon

Hi, thank the you for question.

or more said continue you sustainable back Japan that ATG, And here about what with half growth pricing competitive triangulating in XXXX? about nice nice be you're that and rate to would there. And you kind and expand the just rate you despite take market. have the that new talking take Just there – expect of coming possibly to expansion of competitors following-up environment on to on have

Nelson Chai

Yes. first It's as bit half the report I a fee there So a and of Nelson. service quarter hope to end in year. can at so, of so We right? be India. U.S. we're the think tailwind Obviously of in the will watch a we going the in the continue back

careers. fact about basis probably watch the been that particularly ex-India points is with we think in has and do another and our the drivers do So that if quarter so. XXX to or have there one rate would seasonality is The take fourth XX.X%, thing you

rates. our will have But And to it. so watch take that we we that be in terms we'll time continue to able to terms think of of impacted what in do over improve

David Dillon

Appreciate me. fitting for it. you Thank

Nelson Chai

Thanks David.

Kent Schofield

now, joining world. for everyone, quarter the be to you, their foot their phase wanted team kinds you I full that thank and quarter basis, is and bottom with not We're line best forward. think, it to these getting better. you of all accelerating execution this certainly different will everyone going anything entering all that, revenue a satisfied but employees with us. putting And results public company. I is the Uber. I around So thank an think our of forward, think I with a This showed first From Uber give a as special

again quarter. thank next and we'll for us joining So talk you to

Operator

conference call. today's concludes This

You may disconnect. now

Uber (UBER) 8 Aug 192019 Q2 Earnings call transcript