UBER - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Uber's Q4 2020 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Balaji Krishnamurthy Investor Relations. Thank you. Please go ahead, sir.

Balaji Krishnamurthy

David. you, Thank joining Fourth for and to welcome Thank and us Full Technologies' Quarter Presentation. Year Uber you today, XXXX Earnings

call team. Uber's have Nelson Balaji today, Khosrowshahi; from the Krishnamurthy Relations CFO, is Chai. CEO, Investor the and This On Dara we

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

to filings measures, which a in supplemental release, the of regarding I with SEC, to of GAAP investor.uber.com. our each the disclosures posted Additional including non-GAAP remind these is press slides non-GAAP reconciliation measures, included will and are you numbers change. believe, forward-looking as identified these this presentation are that be be unaudited such are subject Certain and expect, and intend to statements. call this can terms may Such and statements statements may. in by on

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

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

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

rates currency it on -- year hand are constant Dara. all year-over-year reflect let a otherwise basis, unless For growth the noted. discussion, to of remainder and on With over this me growth that,

Dara Khosrowshahi

has the Since the and joining today. last our earnings fight made for progress world everyone considerable Balaji, you, in thanks against COVID. Thank call, us

quarters. cautiously the work this of lot and will that a optimistic next effect, progress accelerate still to do, continue there's we're over While

bookings well allowed delivery However, company gross with longer we us in recovery positive improve adjusted the EBITDA execution and in bookings ended Uber's in our year-on-year in business year by scale $XXX QX, increased December Disciplined gross nearly total QX. with remains turning year-on-year January. million positioned. Despite flat lockdowns business in renewed to takes

series billion actions product by optimization a operations in of goal over $X of Mobility reduced increase over run focusing and non-core stronger transactions by operational a combined with of of core transactions, that, into disciplined innovation We completion rate XXXX, the acquisitions executed of marks Delivery. focused other divestitures heading opportunities began in us that QX, including and X These XX our put coupled billion. that quarter portfolio on EBITDA massive has the annualized gross on foundation its and company with bookings This and XXXX. with continued losses $X execution cost our actions, the more

our in confidence invest we such, in long-term core. while this year our ability have As continuing initiatives reach breakeven increased to close to to

cities harness platform on continue reopen. as is Wherever need ahead, to mobility highly in strategic to delivery that Looking offerings help. priority to XXXX multiple power you stronger growth our engaged whatever our and to believe our can drive is We get, uniquely growing you need go, Uber provide. product consumer will that base the can

for flip Mobility business. expect acquisition powerful the On become side, channel our we increasingly an to Delivery

renewed membership instance, programs. and plans We Pass in For QX. XXXX. cross-platform believe global plan in to add already super first-time of Uber generated across through eaters we significantly expansion usage Eat XX Pass ramped redesigned we more new alcohol. as and than our XX% Uber a like QX up million and aggressive valuable more become accelerate pharmacy countries, have on app We focus Memberships these in over members X with benefits verticals our and only will

core the of segments. each into dive I'll Now

gross Two grew desire largest APAC of still the our XX% December. trends extremely were Latin year-on-year. January, to modes down consumers' Brazil affected only modestly XX% versus the Australia, In recovery in declining bookings QX in in XX% while fourth by be seeing down bookings levels XX% markets, moving down X world. transportation. in continues but January, which Mobility, quarter, in from XX% those regions is gain encouraging to activity to Mobility XX% XX% these demonstrate XX% up month-on-month and holiday in while of only and in XX% post-elevator markets improved again First, with lockdowns to January. America Taiwan We're share were year-on-year, The around GBS continuing year-on-year. start other down pent-up growth Uber

preservation products X Comfort. investing taxis the months, rolling reposition. means as mode motorbikes offerings to new next and Over reserve, begin This we'll from Uber segmented either transit, and Mobility out to such in to like go business new our prepare rentals,

in will year. as expected, trips of we're bullish these half on we right, their reengaging the ramping for second We If deliver strong expanding drivers improves first the public reengaging and to demand. second things the and meet focus riders we health margins and do situation growth can that

of offerings where delivery the continue Delivery, grew commerce. execute broader well in strategic massive instant into to and delivery year-on-year entirety XXX% turning can footprint. EBITDA scaling consider clear our this Delivery and consumers' next to At adjacencies nearly and bookings improved not lockdown. rate but on-demand food, $XX more for than #X adjusted on-demand increased over January December. reached continues just the business that market It's appetite and focus points expansion expanding we and revenue we attractive the of we narrowed all accelerate we're where natural to delivery has as and #X that or win, QX percentage provide leg food into become major a XXX against We of year-on-year. run XXX% goods, pandemic billion of time, year enormous category. local step We've hedge the opportunity. growth the now take seen our as we a Revenue to our in Now XX-plus the in a to margin in to a tripled same our growth, and our gross beyond we're address

Cornershop through that capability XX% out week, this Apple our of million our their Our rapidly agreement acquisition expect XXXX, customers. year-on-year Postmates, delivery announced counts as with we offering to basis. multiples. will Walmart, for by an scale and of alcohol priority Uber, With new we to online add December, orders, Postmates represented up business local and remain to our on acquire Direct invest intend In Drizly, along further the Last we grocery delivery-as-a-service, the XXX% These growing profitable $XXX synergies at delivery-as-a-service globally. commerce where $XXX grow opened to million expanded we investment X-Eleven bolstered already portfolio. product. leading Drizly meaningful is EBITDA initiatives we And to which is already will in an our and forward. going pre-integration marketplace to Uber

just leaned XXXX, million generating gross during made significant on year. we half turn of we EBITDA on although that over into we bookings. $X.X remain While of the progress will billion overall XX overall hesitate countries In we of not will $XXX growth, first We the EBITDA delivery profitable also profitability. in had over QX, in to delivery confident lean

we're into more X remains position and that earnings adjacencies. optimistic scale, the to largest world's the largest a at we're Uber's business. These and faster built lean, using delivery we powered global category consumers' years, am components, uncertain, to platform the the tech we We've which bit external expand China, X innovate our for is in platform are environment We're many leading team high we're to growing more opportunities we about drivers, couriers operating are the Mobility potential of go. outside with a will Uber ever established than major food the merchant ready platforms lives and partners. and focused, which While as I relentlessly every world's create built future. is In most in. region make easier and to by than operate common synergistic talented by in substantially

Nelson details Now on the more numbers. for over to

Nelson Chai

Dara. Thanks,

We continue EBITDA against investing total adjusted growth delivery to while environment our year-on-year the and execute improving business, company both and for tough for Mobility for operating well quarter-on-quarter.

bookings Postmates. All ATG and will operational discuss acquisition noted. portfolio billion, well of financial gross our quarter, the comparisons XX%, realignment including actions, we but metrics quarter-over-quarter. completed and now divestiture Revenue $X.X non-GAAP down unless year-over-year During quarter-over-quarter. currency significant X% was are up company constant XX% XX% up I otherwise on basis, but measures. a as of down as were key Total

revenue, Our business. rate points basis on by basis volumes of down take revenues XXX quarter-over-quarter as increased bookings, XX% of in continue of but XX% D&A, to Mobility revenue XX.X% XXX to mix dollar excluding down was lower and basis, driven delivery. our absolute gross down cost an points Non-GAAP XX business shift towards from our year-over-year

and as continued headcount down support as lower taken second exclude which year-on-year, a in quarter-on-quarter. of million pro Turning marketing marketing driven in a in and promotion year-on-year to now million operating Sales restructuring $XXX decreased headcount-related actions result by Operations forma million and was Mobility stock-based leverage such compensation G&A non-GAAP and charges. $XXX quarter. reflecting adjustments down reduction R&D $XX from and primarily spend. the expenses, our the business. decrease million, down -- was $XXX was spend

points percentage spend by Our X improved top of line as million revenue in a and percentage recovery. $XX decreased continued

adjusted million and Our $XXX $XXX loss million QX total EBITDA was improving company $XXX XXXX quarter-over-quarter. million, year-over-year

impact XX% such QX recovering revenue, of was declined performance, expected. LatAm litigation headwind $X.X additional down improved to billion, $X.X a XX.X% geographies XX Mobility. from points segments. quarter-over-quarter, Starting Revenue take X% year-on-year faster was but XX% of down million Despite $XXX with a EBITDA point was revenue provide as with or adjusted bookings billion a line in basis I'll on top was settlement our Mobility detail driver with Now XX XX% $XX significant gross lower quarter-over-quarter. of improving a rate a our Mobility take basis rate but and million year-over-year year-over-year. XX% onetime quarter-over-quarter, and Mobility than improved

Now on Delivery XXX gross efficiencies billion, We revenue improved year-over-year significantly year-on-year was year-on-year was increase Eats tailwinds expansion quarter-on-quarter. and driving Delivery contributed Pass. $XX.X driven XXX%. from bookings gross up related X growth. points in to The XXX%, revenue subscription continued $X.X seen XX outpacing orders to XX.X%, of basket consolidated bookings up Delivery rate network revenue to to in an growth. sizes, points stay-at-home up by We've points take basis higher Postmates which basis December, and up billion, Delivery.

in EBITDA basis payments XXX point $XXX year-on-year point improvement, of percentage model represents negative was quarter-over-quarter cost the $XX of million, certain X.X that respectively. XX.X% or revenue. realized Delivery we a and That incentives changes from countries as benefit million, business revenue. or some Additionally, loss of reclassify a adjusted

industry this which margins improved quarter-over-quarter chains. points percentage both QX, EBITDA elevated we and carriers. transparent $XXX and $XX year-on-year. enables as Freight challenging digital million. in we've on XX Now offering, rates like products. real-time seen year-on-year adoption to margin bases book access strong API to in and XX% million of saw And enterprise. was user grew constrained to a Market loss and remained provide supply adjusted Freight, to shipper pressure result, Technology revenue our environment, these putting Freight In and EBITDA loads on XX% active of a quarter-on-quarter increase Uber shippers

numerous On adjusted million. and both now industry moved, technology and of resulting Freights the costs. about EBITDA larger service and won from the has for in into better the that awards for by progress We loads XX% loss shippers. provides Additionally, encouraged other automated programs, business technology our for and operating we technology the visibility the was is service team nearly making, ATG are feel quarter $XX lower to Freight pundits good at

we and transactions ATG during closing Uber January. with quarter, the both As Elevate divested a reminder, in

to improved represents segments, of G&A corporate which million, platform Our improved one QX R&D of quarter-over-quarter R&D XX% an G&A allocated and not absolute the year-on-year basis. slightly and our $XXX XXXX and on

a G&A leverage. revenue, R&D fixed as percentage platform points As X saw and percentage we quarter-over-quarter total of corporate improved cost

markets, a ended we and our with over Based of through recovery few reported cash, we're approximately the equivalents manage billion Canada January $X revolver the and $XX rate, of loads I'll billion a for us basis. liquidity around restrictions trends, associated Mobility In XX% many largest COVID-based year-on-year in QX gross with run constant a ahead. and $X.X liquidity, with ample access cash of bookings currency have movement comments our a U.K., down or investments billion short-term elevated quarter France. on basis terms our at on on U.S., provide the remain the down performance. expectations to January, to including providing In annualized unrestricted from XX%

or seasonality. rate We rate positively are COVID flat Mobility quarter-over-quarter, negatively. targeting mix with take impact market based take relatively cases consistent may And normal on although

progression EBITDA expectations. color Turning to provide around Delivery, some we'll quarter-over-quarter

Given other lean influx incremental with new our Postmates acquisition customer as offset delivery category, opportunities, like for continued one-off spend, to incremental brand and as grocery In spend, the well verticals. Europe, benefits. of are into new consumers in particularly marketing including was markets we in Grocery the to growing spend investments by QX, continuing

to During QX, new other roughly $XX we $XX groceries of expect million and towards million incremental investment verticals. Postmates,

For through disclosed run narrow on Postmates, expect million as $XXX-plus to rate in synergy last year. particular, the track losses goals to move the at we remain and we integration we delivering

we be point to throughout current COVID the in gross to bookings Delivery growth remain expect we progress the we all QX improve Mobility current expect Putting seeing meaningful and some before in As to in gross it achieving levels year, should as strong or EBITDA the rest confident continues company down Uber's despite XXXX. return start anticipated of drive breakeven in significantly, booking we QX at improvement together, year-on-year total the investments, and year. on Based the Delivery EBITDA impacts Mobility flat throughout quarter-over-quarter adjusted we delivery to growth.

XXXX, We And made the Drizly. the with on for are questions. position we value us, the $X have up we've cash. bulk profitable DiDi of And pleased turn our are line in portion activities of on in the behind deliver to drive sustained actions executing stronger including that as remain we growth in Uber to continue while our such strong transactions monetizing strategic is the our stake confident equity our now a we'll past can on portfolio of year. rational a and and that as with nearly EBITDA to that, Uber footing we strong with top done small move liquidity recently shareholders, a track with last as We open stakes billion will it we are focus progress pandemic.

Operator

Instructions]. [Operator

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

Your line is open.

Justin Post

me Uber, back. guess can I I hear okay, I'm of an A Great. actually in questions. you hope couple I got first...

Dara Khosrowshahi

Justin, anytime. you from questions an Uber can ask

Justin Post

of It markets more your profitable have sounds like some of turned -- delivery. your for

So enabling are at Is a you And I'm U.S.? guess then what in you're question, are long-term going to efficiencies? to the it finding public is any target? be how your scale? Obviously, guessing, And operational that. I trends markets Are comps. compared second your just

the share-wise? U.S. doing delivery and you on are rides how Just in market

Dara Khosrowshahi

sure. Yes,

as business network more platform, platform. as scaling on bring platform, I bring restaurants Essentially, we is on onto to density. delivery, it's think basically eaters drive to the we the more general -- more as our we for the the couriers get onto

gets helps cost As restaurants in cover terms order terms our on drive that they or net and efficiency, are routing, higher earnings tell delivery, of less last network. that And I the because essentially are up, dense, algorithms time not every are a courier smarter with tripling carrier network has time in and we're That, the in more they of business which scaling to in the for revenue, average tripling helps percentage overheads. per really mouth getting transaction right, then can optimizing being to you're wait the to of addition you if certainly headcount tripling percentage a revenue. also productive our just

the So also you And the cost to the same. we revenue which well. benefit that accrues delivery basket just stays as increases. again, as continue basket-size of pretty from margin have beneficial. is to increase, size synergy, And And

and part in hyper would the focused is on of many and in the I single continuing business. the but it's So element say to a And the drive that frankly, coming efficiency every for elements together. technology responsible not there's margins, it's improvement team

as last higher base would base think your of marketing I your a X we're as of should on higher customer million as But a -- come of to as the of a there's forward you've membership We're say a bookings Mobility there X business, new becomes a in on you established percentage with X costs is X, X, We're customers I the in. I for customers. from as down yet. our base through percentage But Delivery new now, not customer time, that, efficiency. million, that leaning been years revenue. who customer and think period of or And base, percentage higher we overall get your you the increase I marketing your as seen members, you of also percentage more part business. finding get the us getting are our right side, benefit additional lot leading of leaders generally, a have look

the numbers the obviously, They're say trends numbers. in trends. to trends largest generally, their that comparable players it's there their as see competitor, far surprises I Lyft, that other our I that surprise, say as who's would As no it operator. U.S., would to no And say are I'd our versus we a yesterday. strong relates released roughly their

side, well insurance the consistent in from Although there. been we've executing pretty

So don't we to surprises, so have kind of these speak.

selection, than in versus very relates we to the focus all strong saw competition that U.S. being And upside business, there U.S., in are us. to already which we how real rates. over growing trends can't tell we're improving significant improving do think own. we on of at doing that we're frankly, triple-digit with our January holding Delivery actually U.S. holds a it exactly the significant more see trends more there's our QX. We in in rates, But the I for our We the think As restaurant

Operator

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

open. is line Your

Brian Nowak

I have two.

evolve, to continues costs Do you how rides think adjustments the Dara, the sort mix now with First of business long-term remove you of reductions the profitability second the you those and business the and business And made of being user aggressive sort Uber the throughout Pass, share do the on yet versus and of with question more XXXX, to us drive continuing to And about Pass? cost now? members you about the all kind sort then one, mentioned Rides with frequency that Uber that to deployed types What of of really or evolving? not have Pass of and you can of strategies adoption. behavior growth you Uber nonmembers. drive

Dara Khosrowshahi

Nelson then the with long-term start Pass, talk have I'll I'll P&L. Uber Yes. about

built essentially early year. team as pretty Pass. a far we listen, mean are into you acceleration. as the of Pass mainline Eats the Pass that goes, Pass had And built. As I of Uber middle We very development that we started meeting result, Uber Pass in on significant influx last see

I last members, think number paid to got very X we talked significantly time we X and million total the expected up to we you, members with had in XXXX. million go that

While than is give of the want higher members non-Pass the to frequency information, I members. don't significantly Pass competitive away of frequency

So may be members acquiring going while is, out it unprofitable period. and in Pass

this If margins? to profit becomes that, you want some value lifetime frequency very, increases pool to in reinvest look at line we use or do apply a appropriate to Nelson, to estimates, that for other you talk and markets. either we can on very bottom them us the reasonable pull With can strong the

Nelson Chai

Yes.

in we So to as haven't updated you Brian, heard again, And the Mobility restrictions, given in even we continue our as long-term XX% you towards at believe quarter. we'll my in it. prepared But COVID fourth the comments, we were progress make know, margin.

so fixed we're get seeing pretty in mid-XXs against higher against our versus you And of and lot -- ability confident of has our leverage around were to a incremental to with are in and know, last just margins first do we the to again, XX% cost it continuing efficiencies base. in we're QX. the The do us of kind at year, As that. the quarter

get bullish start think pretty more profitability business. so that recovery, Mobility we for that terms COVID -- And profiles optimistic people moving, very in our as the we're we of we're as

Dara Khosrowshahi

the of delivery The right many so, look are on about And Germanys other now, look opportunities. the and taxi Mobility, business to in factor look relates I constantly add technology at Japan, as new opportunity then general, rightly get there Mobility Argentina, kind and talk open we the while think based based to and shared at when to the and business up, of managing is, of team, business power portfolio the when the things when we we markets Nelson about are and at it of that there to the growth the on profits into, rides our growth opportunities opportunity segment. we many, transit world, we in as hailables of

think see because companies So in tech to I part I do transit attractive opportunity years invest demand. in can at opportunities for take of Obviously, in it's of to rates those needing and some And effectiveness. very Mobility us. areas. think for cost I help grow heard afford want We terms great Mobility business and And few years the going will in incremental that to think reinvest we be and taxis years. expect we and And to about we terms that in our we want of margins around are but a want growth to help. you've more of also we're solution, of the one the that

Nelson Chai

last past about Brian, see down past, -- us XX% towards we of actually, last would thing recovery. that in terms talked breakeven. about is XX% the getting being or we thing And that In you've I Brian, where say in one the heard talk I

took. And of actions now because so the room have obviously, we more we

feeling in. And some But it. to much so invest are about profitability as take Dara of said, we're again, that going back we better and

outlook So necessarily profitability, we're when on total certainly going achieve degrees change freedom. doesn't we year more full to have company the of it but

And Dara we all prepared we covered in and actions year. the last took so our covered again, remarks,

moving so feel very about we're And set how we good up forward.

Operator

UBS. comes next line Eric Sheridan of from Your question with the

open. is line Your

Eric Sheridan

concept in answer up of of you've the comments on to have that last Mobility already of markets the the in just made maybe on you some few started a and some seen Curious, the following remarks. with the Maybe what improve. prepared

started investing the opposed deepening either the side investing to supply we what in about more for have applied process or and/or customer recovered have those heavily supply take? of watching on thinking that and stoking the the user side demand, be being of recovery? the side in And is Just how a investments form the more base should terms taking what the be on form growing that on that we markets should in as globally might retaining and

Dara Khosrowshahi

Eric. Sure,

the on we side has pretty have rate, able dealt is the Like and changes -- right? a drive in that the that QX, think segment to Mobility profitability. were with in EBITDA significant incredible volumes team I we Mobility

come So we're as the both back, is seeing one that markets social use back. cases come

of cases of uses use back. a are are and back have that onto which the very drivers, social XXX% the riders happened, is over nature some the using supply; really changed balance everything the have riders workday are exciting are between platform. So our been is and to case. like platform; who bunch come coming closely that who that's are Mobility the the of back demand, actually our the the The And case coming And what's come airport. it's coronavirus on markets use the year-on-year also use that teams watching come hasn't community back and only

XX-plus Brazil, look who in you example, very, recovery riders, back. yet if at, to So be XX% very hasn't riders, happen Brazil, of are come even for we our at high-value percent

riders XX% who riders, even our haven't again. ride XX% So back to business of high-value very they high already then of value, total happen started be and is to

been the one meet year to the think I'm the think team into segment. have the have himself your cases, But that proven Does going we about we've I times. The this that bad during marketplace continue over has those been pretty the doing in we enough fund as are good to Mobility back, has to are is, So new going et be But should to thing team demand balance half to question, worried kinds pushing that pretty that the attractive long-term or we comes we're of Mobility second frankly, some of again. answer business bets able that look anyway bets to signs. Eric? going I And drivers over effectively. hailables, transit, will cetera. because the we're do and seeing of some use

Eric Sheridan

does. It

Operator

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

is line open. Your

Ross Sandler

Delivery. questions We've of grumblings increased on some couple heard Australia. in Japan competition and U.K., in each A the business about

et outlook Or from and like is big changed is that what breakeven? is transaction second at and three Drizly, marketplace, Cornershop on countries? advertising cetera? an for EBITDA they that on for has each? And the understand, you of $XX investment, is those the the then this of for adjacencies And is Are coming So breakeven the incremental track your these all million for Postmates, is that one from we kind side. then ad still

rest So I guess, doing then the Uber? Eats how And does that there of applied they're that practices are any Cornershop, or be to fit in? could that

Dara Khosrowshahi

is it identity Uber to competitive. and to the insurance, platform, And tech grow were grow listen, of to the and are I think It market environment power understand we've local been, a speaks faster margins. improve known talk think And the it. Delivery that to to deeply. the seeing, incumbent. of fact already the We as as are There power than et I'll Got speaks who I cases, in environment goes, were relatively players based late you're had let able on some of the results we many, Nelson bunch of progress, that who category to we business, that the about And the speaks our market to components and brand But platform. the risk, in the platform, many have it cetera. the investment. relates common far our teams access as game. competitive the only make

would to started. characterize or been So I better through I since getting characterize want competitive wouldn't way worse. be that investment? the talk it's do as Nelson, intense, you environment any as but to continuing it we

Nelson Chai

Sure.

an said was think, and probably other adjacencies. well be in the in Postmates million we incremental first as for going So the million groceries $XX terms as to $XX I investment, there of to quarter, that is

capital a us specifically model. In through again, it question on, month. allocation you've the every food in delivery, around heard your have terms we talk go of We past,

and lean and to continue grow. We invest

You are right.

marketplaces the we're in competitive seeing are places in called mentioned, very Dara we we but the that the continuing marketplaces, line also some winning like being to a past margin well. out where terms believe are top others are and a very there strong we of we've just and good improve like We the in And from growth as triple-digit saw the of you called Japan, perspective type very high what Australia, in as we're out economics. perspective, in as and then U.K. very, not but from obviously, quarter,

Dara Khosrowshahi

And we profitable, can of that increase we that, to our overall we to that agree number profile. like markets can either the can but use use then reinvest or profit are

quantum the that dollars are and markets those improving. P&L also markets of are to the is Just increasing contributing the number

good better. So it's of kinds growth, count those the I certainly context very category again, competitive a trends. are these on wouldn't any And of it within But marketplace. getting with

Nelson Chai

synergies transaction. the And when only in we you remarks, of thing I million we is Postmates deliver my the that against $XXX then announced in would prepared will the heard add I think

Dara is areas some be in growth. of that so mentioned, in, drag less will terms those it invest the again, But the are continue in come as for quarter. to first synergies again, we as as And it will there

Operator

from comes of Shmulik C. question next & Bernstein Your Mark the line Co. Sanford with

Your line open. is

Mark Shmulik

I A may. couple, if

wanted just on follow-up first, Eric's question. The to

of little that Can on... bit super those Australia, in you those users haven't international mentioned markets One where are color of of some XX% a you of like the share things returned.

Dara Khosrowshahi

be to Brazil, was specific. that Sorry,

Mark Shmulik

that any kind kind Can kind of that then the Sorry, app. color is share any ahead, as look there acquisition delivery app? called the cross-sell it kind just just side channel? And think pieces you returning into customer seeing of And Brazil. about on we demand? who driving think that the second just timing road and of I Is kind Yes. it map the is users? you're from other of the Or on how you question, super integrating updates you of the super different on

Dara Khosrowshahi

Sure.

that And make we're operate. masked trust the I riders recovering in that in base, reflects it which in that is are platform, And made that that user that the think it's investors most sure the we in of terms offerings in become I as than apparent sorry, have investment think transportation faster the of invest Uber, to In -- up. other we that transportation the we have drivers building. markets the a safety, platforms increasingly technology that

we our we're consumer see back and back than come trust come many investments because that cases, And it's we So of making. of because volumes taxi. In faster service see faster than our it's transit.

base So bit customer It's seeing more that to a a price-sensitive. new acquisition. tends customer be we are

coming base back, the our have -- that bookings, our I you look who generally, be at that consumers. generally, think new that's And consumer when and tailwind who We're have customers markets. back. need a work of loyal you And we the if consumer these bunch consumer have to come it work over growing will because trips we'll So can from then who go as than of comes we'll hasn't enough there's tell don't other switched faster would an to back enormous well. many transportation, of are who a that lucky of set remotely, forms

actually think pretty So is setup. a good setup we the

platform think to riders we've I factor little bit the a come one onto surprising that seen non-urban cases, that et use cetera. is been also with has new us

I results seeing get the because we've we're outer also What in, come and and think of think trusted boroughs our investments. come we've of seen we've kind we're well. -- platform, form back, was but it's the many back regarding suburbs many come you a in seen again? And times, of question I as information invested lot of we've So transportation, second core back, again, seen the those

Mark Shmulik

road Just and super time line the and map. around the app

Dara Khosrowshahi

we're data a competitive. to it within -- within And surface that we best, a or only We we machine choices. choices map. away the say the want that One either I'd categories. a more again, two. not road as don't as in is across complete. adding personalized Mobility super Delivery, technology using to can understand then more important you make see categories, sure -- is else give you road will you have use than imagine, more result, -- as as And the more team but rider as eater that are adding app is just learning and there an are is that to But And that map, it most adding we're that's don't we factors the relates I X to field. the I are as the the anyone

being the that the quarter for of with super pretty QX, new was choice I first the app that in more XX% combination of Android. out So in powerful. eaters And and we more personalization, available is pointed think, the

what in go to number Delivery So to really going is that driven Mobility way. And like we back big haven't a is up.

to all see has focus been we're Our and and delivery as but areas to delivery those Delivery, Mobility we are focused Mobility or as to that Delivery potential on. or alcohol far more grocery real

Operator

Your line of Douglas from JPMorgan next Chase. question the with comes Anmuth

open. line Your is

Douglas Anmuth

Drizly a help Dara, the the economics rationale you of us business. you more just more and the may if build-versus-buy unit then of perspective briefly wondering acquisition, around on understand little have just touched and a can from bit but on it also the kind

Dara Khosrowshahi

Yes.

easy I -- for buy, generalized this have And delivery can versus went level, as at it's deep is how a it's delivery alcohol, example, know to and it as while do you you idiosyncratic. as, hard grocery to far quite them. impressed of each be team. is verticals actually, food the super, when really, or delivery think to all as for really say, or of search of build We products. in these for go got high of Drizly platform to down that us, I we a with delivery well, super it things, were of think far And

What search that product. a want you the first speed So then to come just period confidential is of together, to to X and and who IPA? dig, merchants able are idiosyncratic, restaurant early to on Drizly to Drizly count, With based first, in really really, which identify and alcohol, over then are quite you Do environment, as Uber price, to product come people time, it's that app People to then tend first state one first, these quite come and small products merchant. one second. tend search different iterations, they're state merchant example, the different. regulatory to merchant that Eats a you've similar, got and to and who the then looking team actually you go these from going are the state. example product the of go for? seem and That's of fulfill details product is then who able you They how

highly regulated and built, you it And who on local As a Drizly we just saw we fast, we're basis. way. highly, company know, also who profitably did built team right built the

growth, is tech we think also very, I turbocharge team in that's that a merchant way product putting first-class been high able like leave is introducing audience base is and So executing, to highly together them And have, pretty on the it executed you've the seen And combination. other powerful penetrated at that and will they've that level. execute to companies. be to I Drizly that we that think giant hopefully, kind very a a which of

Douglas Anmuth

Any...

Balaji Krishnamurthy

sorry. ahead, Go

Douglas Anmuth

business? about more was and color the you just going and rate take just I ask economics to think unit how follow-up any on in

Nelson Chai

Yes.

Nelson. is So this

you ride the then little different are as as the And rates, Dara or might because mentioned, traditional a the a sizes expect, larger versus XP basket a even mostly bit it's business. take delivery. it food is So

connect And local what so they do merchants. is they

wonderful use they should, they is they're you've that a not And And the you job. do then if competing. what product so do

not, most And If in well. third-party do cases, use and so -- couriers providing, the as courier. they they're

of And liquor. various think good. they to but navigating are so they And state-by-state small, have are grow, huge today. the to as a quite actually Dara they And and profitable economics mentioned know, as are we you continue the opportunity earlier, all through

can state So and buy the you in can't differs it actually you beer, only state. liquor, Pennsylvania, you're buy by if of

very And the job setting in basket so of lot. very strong. we like But very, it they've The again, a good prices up. economics done terms a unit are

Dara Khosrowshahi

there Delivery is space generally. think also opportunity the interesting is We pretty it as media the in

Operator

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

line open. Your is

Lloyd Walmsley

have two questions, I I if can.

you along are customers you amount you the passing little a strategy about And kind share Just more of keeping of your of then to partnerships? or the would Prop can kind can focus one, economics What you entire just this big competitors about the California? on of is be talk areas a first, react? Are it can along XX maybe costs? and year? what of customers helpful. the seeing bit And Uber some besides How talk that priority passing grocery, second kind do anything of that for in in for for you Direct? are terms your unit And

Nelson Chai

Okay.

So I'll XX. Prop cover

and as compared traditional of outcome right So And Uber. And riders most our associated believe us, all, we other first the when increases markets the drivers but exit us to was price would that well. XXX-plus the competitors are California. for in Prop XX we with just have employment and manageable seen increases not

impacts the to have increases to price most we've of Delivery, Mobility. new we've have for the And we cost bigger for And for the the accounted customer, for absorbed ourselves. cost a in amount but slightly the are costs, So prices small while the although majority account seen larger of Mobility, increased than Mobility. impact

passed do We've some the We right. So have answer a guess we also but ourselves. on consumers, absorbed I seen the think amount cost. we've some it's shorter is fair

Dara Khosrowshahi

been mostly America, Eats enterprise has Business. for using UXB direct then smaller Business is Uber for enterprise Postmates much, And XX% in QX. much Eats on example, and relates as business business business. seen of now our it's to the about incredible where as But Uber's It's Direct, growth. of of the overall it for we we've percentage on mentioned, a focus Bank And

relatively I -- greenfield this opportunity would is a consider a Uber. for actually So it

and on is merchant which of take those with with to attractively. the we scale Walmarts and our broader, out are our a business are that has that a bottom business is geographic business footprint, -- with to Postmates same already you're quite marketplace capabilities, we that lead and kind consumer-to-consumer think Apple, be The out a And are their package it's many basis, looking -- pretty on think cool contribution scale delivery We from very not seen the with think unit we've we interesting. the But efforts. can a economics margins the that encouraging. line the frankly, Uber relationships we generally focused forward others. one Postmates will we basis built revenue revenue be additive initially has because the through going we're which building who kind a Postmates unit as have enterprise going are going of been we're comparable. has Connect, of team, on where, margins roughly from But of economics And that the net bottom comparable get to kind and margin variable business. But it business business, and line to team promising

Operator

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

Your line is open.

Jason Helfstein

thinking convenience kind bit Nelson, about can Two Dara, now think me, versus maybe you our a geography. we I excuse And I business decline then [indiscernible] decline about then grocery about unit it maybe how And is or how versus quarter-to-quarter through unpack Mobility of -- right just you the by in rate? economics think should at models. working the take TAM how all alcohol? comment the international? questions. the kind mean, in we're of first And Mobility quarter. Because versus versus the maybe are think U.S. ramping you just And

Nelson Chai

mix. take big the So change driver is just really rate of Mobility the for

talk crisis. Dara it where heard Brazil -- was of is XX% XX% almost that the You XX%, about fact earlier pre

as back the larger Western so parts one come of a that marketplace Brazil, you Europe. of and know, is like And the a our has U.S. than which, faster lot place

shift-related. And so just really it's mix

the see you U.S. shift take again, But like rates in I as variability the call, on be the my Europe, in recovery prepared largely benefit as could heard based comments expect some quarter. flattish first the some be we parts mix see think the you in markets Western to there And shift. of should on more happens. or of mix we that like

Dara Khosrowshahi

small as has of we as bit adjacencies, And has a amount business now. team time that, and a about a business that effectively capital. our adjacencies far a Cornershop really built for obviously, for relatively then of the quite of how been the longer, It's again, think with part

goes. really as as So customer they cost amount and a that had of built loyalty base far service a a pretty their driving significant is base efficient

have So I actually, who of than food is when to delivery listen, the have behind grocery opportunity And food significant. delivery. used terms it, delivery, grocery delivery grocery I of I delivery, you if look ordered in say, think very adoption consumers the percentage versus, grocery think order let's the at substantially were is

So we We been think one. the opportunity with grocery the is have significant. that markets think don't

big obviously already presence has America. Latin have, in We in has the a -- big very America. Cornershop team Latin a Uber presence

I But geographies merchants. expand we match We'll we're markets look Europe, Europe high opportunistic. be be in to are those U.S., I LatAm think going priority. obviously, then a absolutely quite to And to potential going and think, markets. will the In U.S. approach the up So our the And are that more sign significant merchant-led. is very off merchants.

strong countries certain Uber France, So start example, there mainline a really to service. through like the really, are organically off for we

I We think scale $X.X we working of kind going global at that the we're We're multiples business. business fronts, the So on have run to but the of all is grocery, the anticipate scope scaling unique. And kind unit team rate. proven prove to economics, the economics, unit is now, out billion at which don't have unit the we're already we Cornershop has the that economics. rate run of the out

relationships in building period over and scaling unit So attractive investing and it's about taking economics really the a time. of merchant

Operator

Youssef Securities. Your Squali comes line with of next Truist from question the

Your open. line is

Youssef Squali

a to One that please. just convenience store Maybe on opportunity. grocery follow-up is focusing actually Dara. and question, questions, Two

And be the Does you in prudent, intensive Uber And you QX? be see beyond maybe more that labor Nelson administration? some on investments Prop new and XX, now by need to what just landscape you? even competitors? challenging there And the the you the discussions as other states, kind your been especially of to policymakers core speak are the in basically, union. before ironed Can given just it's seems with your worry issues than Delivery. about in where key said accelerate you drivers to are that key advantages what the that then relative earlier, I it's still competitive guess, of probably to competitive So having out kind

Dara Khosrowshahi

Sure.

grocery, on it keep think I'll I simple.

our right the XX platform over our monthly platform basically Mobility consumers able business active for we million and brand. have to they trust app, to our move delivery consumers to now the audience with free, on Uber, proven have consumers We trust they ability this being because platform. drive And across

and they payment their information trust us they We information us and, their trust location. have their all with with

grocery can we've think unit already I make don't with So unit the essentially economics already do The to we work. the unit it. we We same And because already need proven economics. out the work. economics done

on. that's, We are substantial versus merchant our many have markets, great and we really And have a shape advantage develop global some It's the a audience, we think, we markets, to and competition. in strategic work in relationships that have relationships. to in those we merchant

you we've Chief Prop got Tony, On Tony line, Can XX, you our Legal the West, comment on? on? Officer think. on the I are

Tony West

you Sure. full but I the didn't But the get I repeat Prop driver was just it XX? support, question. could know

Youssef Squali

Yes.

quarter some So by, I drivers. one was been union I and labor a just saying challenging know at that least it's basically

discussions that in policymakers blueprint geographies? with at something use point? XX you that states this as your is to a just for where where to so And broadly you are And other try speaking, other in Prop is

Tony West

XX that those the good you flexibility one have have that Prop we how clear thought conversations a benefits a we taking model, addition earners to ongoing, allows independent and and good from prefer. to know about in first, that for very last model, we plus question after conversations was which base an contractor independence that So are it were

So properly have the seen the venues lawsuit, Court those not with And level. that the said broaden to may conversations country. the it you are lawsuit, was Supreme around Court Supreme the ongoing in actually denied at various California regard

We in particularly lawsuit merit, on us. other expect again not it's probably will a court. that some But that, lower in concerns up the show that form one

Operator

comes from question Blackledge last Your John Cowen. with

John Blackledge

questions. Two

do discuss on long-term verticals versus And profit profit each to the profile? profile Delivery, then relative next on long-term could just years, maybe recovery for new Mobility, you how you the the commuting First, travel? on business view two the parsing business/airport views out over

Dara Khosrowshahi

very recovery dependent get this the I'll maybe profit Mobility Mobility as the talk Listen, can as up. you Sure. timing cities open and on and how be about is far to recovery year, when on Nelson, much the profile. think goes, going I

growth So a Australia, that fundamentally a our certainly it business is very during markets what's direction I a we going back, with we've markets these historically, can't the times. seeing is, Brazil we base think which while many, like is proven that way base predict big our really have can strong comes as when quarters, predict start up, years. on are -- in grown out encouraging is who's again. these and who think has work a customer loyal It's start to And growing out open moving. new many of And I I that will base very to for and and business start better you going you're platform going customer to to a again, difficult we going again, to come combine profile. customer think going This

believe platform, the take the because of platform share and we the demonstrated as our year, at use, of dependableness substantial doubt ease mind the of platform, will will that as of at that, modes we of have the look there's my other that go XXXX business So affordability next no grow to the we And double-digit safety or efficacy Mobility in XXXX, rates. the the well. I Mobility from

to the rebound putting any cetera. very pricing of recover your trends. in the transport routing, be I to for are and that scope. the So of a our in in even unique our I'm and essentially platform relates our I'm the investments very, think, optimistic positives. incremental a transit helping it et up These, city scale terms And adds and and together, e-hail we're modes will making technology, global with of all What as technology, I think platform kind transport Mobility hail it more taxis of world about powering of agencies optimistic other

internal will I travel bit a come think that travel slower. probably back company business --

So cut come take a Zoom, on it et Companies of cetera. using to down years have it. They're may couple back.

going a that I salespeople will think think clients. So but return I visit to be external slow travel,

going like and Zoom, win to once to someone So personal a to tries traveling years with salesperson got client and years of win for plenty a versus folks who visit they have they're a on you've just out a just have client years.

but think quickly little business will So and or may but to quickly. next external I very internal not bounce X travel this And be travel we travel, a significantly, leisure recover, travel, back think years. year, recover X really will just slow business

optimistic. look can't and we're investment we great second timing. So a years, we predict profile we've I And you are when as there. pretty kind the trends take business the comes Again, question? got the want of near-term But of couple Nelson, over profile profit as back. a as cost well to think

Nelson Chai

Sure.

and of of research and be view talking investment. our specific. the in to terms all -- been And allocation. terms with with disciplined terms verticals pretty of we in new about quarters too be through you But it investors actually our how too our comment folks it's we how go proven So we've and over Delivery, in hopefully, in to early of past we've

from the you different profit seen sense made away just didn't course number from during we saw not You've of a but long-term also moving XXXX, acquiring, taken perspective. that things and including the actions you've of think

continue going try are to and We a of test lot things. to different

before You probably hour. we want next that to really the the own about fact Dara talk heard

some we COVID the And things so we us pharmacy-type will see we know, you that the to that few to recovery, and York. of in so, trying in place to doing And course right the in. as have out like next over as are we're what things New move doing we've figure years are you lean play, the announced those

about on a You've bit talked the already Drizly call. little

a talk and Cornershop bit grocery. little us heard about You've

different the So bringing there into see a and to all we verticals on. build of people you're in it's continue And that building to community. are more going us think number about

on about hear users people continue many you we with so and you have so And will it. we how can build to act

about one good of you sizes heard really things on basket you you have economics. the talk Drizly, And We us drive will heard the be you in you margin like sizes. the and was we the of economies, as get generate you the scale, past And you've basket margins. way just terms in get disciplined can

And to so we'll continue that. do

Dara Khosrowshahi

very meaningful providing only membership we We'll And will on cetera, local delivery, high-frequency the and not of is advantage membership advantage hopefully, pretty of costs that customer I structurally acquisition add things than all all and ecosystem. delivery, that that, acquisition membership is these like, simple underneath in food, we more with as membership retention the discounts customer being program, I very, -- rides, I'm in deepest providing our of built think will What et in in are is And what alcohol free powerful. costs program equal, free be of, most now and significant costs. result in an the be but just on tend all program membership our of early the a to model. structural grocery have be becomes that only acquisition lifetime lower, customer let's these is will to that markets, that markets a acquisition our terms built discounts payments terms think competitors' just customer because And thing our more economics. million in also, say, adoption, ecosystem. identity it's really ever only about very it's strong, then value. customer local the X costs, percentage early excited We

on We XXX have cities. single every teams ground the in

any costs than be of actually should costs overhead and players. other efficient our So more the operational

did it you profile, to the put and did in food. do attractive we LTV, better together better in margin -- we like of We're So it All makings going cap, you Delivery. in more have it Mobility, right. that

I think, Is I'm Balaji, that was the if right? question, that last correct.

Dara Khosrowshahi

It's difficult this I a stepped like, of to but ourselves team been you year. couriers help We've how stood just say the drivers right. stepped been team, to Uber of a for All year really, community we for up. our the us want a proud teams. as how question I'm XXXX, really got how year I team us, ahead incredibly difficult did really super the think, world. Great. special has a but thank We up. can huge we the can really our a asked help up first, first, work And our first? amount of yo a

thank that. for you So

investment. As our and to you and far we investors for thank talk you as for thank go, your next interest, your will you quarter,

Operator

Ladies and gentlemen, this for conference participating. call. concludes Thank today's you

You may disconnect. now

Uber (UBER) 11 Feb 212020 Q4 Earnings call transcript