UBER - Earnings call transcript Q1 2021

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Operator

Good day. And thank you for standing by. Welcome to First Quarter 2021 Uber Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. advised, conference be being Please Instructions] that is today's recorded. [Operator Relations. to I Balaji conference Investor would Instructions] hand Krishnamurthy, now of today, [Operator speaker like the your over Head to Please go ahead.

Balaji Krishnamurthy

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

be in first the San to Francisco. the you live we are pandemic For to began, from time pleased since broadcasting Uber's office

and call On Officer, have CFO, Khosrowshahi, Nelson we Dara Legal Chai today the Tony CEO, West. Chief and Uber's

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

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

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

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

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

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

noted. constant currency year-over-year first growth otherwise reflect a and this growth are all discussion, For unless on of quarter the remainder basis, rates

trends. to April trends, we April will For with providing comparisons XXXX addition in year-over-year be

hand Nelson over financial included release it a over our not Dara. me With detailed those go Lastly, will in that, press review let again. we to have QX earnings details and

Dara Khosrowshahi

And seeing tunnel. the light everyone the joining finally us We're the Balaji. today. end Thanks, for thanks at of

relief and of a even with and over. too Cases are are again. pent lift, to important bars tragic places and recognize family world and up people reopening, There's the consequences. is quickly, see rates traffic. demand far improved restaurants sigh it's vaccination high seeing restrictions arise, infections offices, fall airports that to start in As around certainly breathe moving friends, many battle the many not remain But and

On ever, to will continue We we consolidated our wherever the us we Uber's our recovery. get can. took growth then week already virus positioned uniquely best our on terms best the best to last bookings. since returned in and The month actions do QX, last cylinders. our a begun basis, all in week, we've to to ground ever, to part, year hard with harness this work had gross on quarter fire April, team's of our help ever

we growth, scale million and as Even management quarter-on-quarter. rigorous cost EBITDA invested $XX drove and of the and of adjusted $XXX year-on-year benefits for million improvement

Mobility, have We and sheet assets. continue investments valuable strong to a and in with and Autonomous significant global several leading liquidity balance Delivery growing

core large from that will get wherever of to want two they people complementary need. and confident I'm they ahead, benefit to opportunities, nature Looking our Uber help the go whatever

Just last week several on products recovery. the announced we focused new

of We're product appointment all Walgreens airports, ride magic is Uber rentals. products and now the and car UberX in our at to You vaccine Uber can our you bringing and app. reserve Rent to the a book there expanding to also Uber

pick Eats the starting with want. will markets, new valet We've providers several strong feature, rides riding Avis to someone also with benefits car pace from You whenever vaccination can drop our Pass, each - new Uber including improved of off Hertz now started an it rent benefits pace to in at added March with our pick-up it your dive I'll Mobility app, competition. up, key and differentiating Eats car now the the a and rates US. house like in April, new to Pass segments pick further from into recovery and and further in Mobility. you

markets April, reopening. are to week to improving particular, XX% of XXXX. In accelerate GBs in that the several bookings in In most XXXX extremely We bookings up in billion Kong, improved rate Taiwan month-on-month City, were levels. case lockdowns started versus elevated now our versus the versus forward. Outside counts In while Zealand, a and reopening XXXX, which positive year-on-year in strong trends optimistic roughly $XX Mobility US, versus Overall, this see XXXX. to there. of UK GB Houston, week-on-week Miami first US going gross XX% XX% business continue are month-on-month XX% all trend New April, were recovered impacted GBs with all Dallas, recovery, New New lockdowns versus we over APAC, X% after with with instantly, in in contrast significant York now India XX% to Atlanta, trends Jersey, early adversely April. almost and signs XX% seeing improvement US In including growth the versus renewed XX% and should XXXX. XXXX. nearly of up Austin, run April saw and improve recovered QX of Mobility were we were in up QX April recovered and of April EMEA Australia, EMEA gross UK recovered back in XXX% annualized April, improvement Hong in regional prolonged markets

trip their to ever. make back As that second working as riders come to we're the magical platform, first is as hard sure

to our the is base. top priorities driver rebuild of One

so left about who reasons; concerns last demand. for two safety the about drivers and that shows concerns year being research rider primarily platform enough Our there did

name currently the demand outstripping With that hard words, keep and improve around PPE we've supply, in know on in often New other likely work our for just targeted in historically time even On at higher, median tips Median a and and supply are to velocity York hour earnings plays policies recovery elevated cities. existing driver safety achieve mask are provide to the the several as new apps up more an both Philadelphia, working cities. several an to at drivers hour maximum and City riders which few Uber, and looking will to us Chicago, supplies US and front, in to time including vaccine In with continued earnings above an earnings US we're drivers hour levels. and other in enforce before to $XX $XX all access online for free drivers that safe. Austin, their are to on in drivers lean the significant measure build continue enable earnings active other so incentives will simultaneously or out. countries, hour total We appropriate are $XX an of $XX

roughly to driven $XX strengthen markets with Africa growth category markets In by weeks. South accelerated recent run Now Spain, New York and expectations. in selection. France, suburbs improvement continue improved bookings stable and several City our we the Canada, in our Notably, in to April. UK, Taiwan. reached turning category our improving a restaurant some Delivery, gross to position continues year-on-year billion including annualized major category our to the surpass QX position growth urban in US, was XXX% and which rate in We

to anything having offerings consumers become broaden delivered to door. delivery habituated food our as beyond their continue to We

in with key We're the signed France, substantially run QX GB Japan, over US, expanded $X many US, from several Rexall March. and partnerships many billion business verticals Brazil nearly during and Chile, in including new annualized Aid We others. few past improving traction doubling Our Casino Canada, Mexico. the quarter, UK, in France, and Rite Canada an Group months, reaching including rate in in the amongst the seeing markets

tailwinds, announced period GoPuff convenience partnership elevated the investment we'll the growth essential robust To our selection capitalize that business, to app. courier exclusive leading items, also on directly an with remain in a We demand. including into for expand serve Eats and of delivery everyday from will of these

over reinvest million markets. bookings, in profitable $X additional and of our growth gross us just $XXX generated flexibility markets Additionally, give to billion over of which EBITDA,

result, track EBITDA year-end. for As by to breakeven we remain a on reaching delivery

Finally, XX% allowed us during while an US, team has the its quarter, turning the registering well contribution business and renewed With as growth our is freight opportunity to milestone to we margin as variable with reached delivering EBITDA on quarter a acceleration to focus industry-leading positive of freight. important the automation achieve per first believe in year-on-year. Scale load. revenue what cost points XX percentage variable the

Uber tap. in scale, well. business very opportunity freights easily market have source as sight us product We're directly API's the margins capabilities digital pricing, channels ever market and continues the and target tighten providing route helps product for the allowed to a access to from with as Our diversified To all as and carrier about that our quickly have we And about direct profitability as network, TAM to we up, pricing one fit sum of largest time customers and clear now as our excited such have new line a I'm EBITDA opportunity, confident data level. to product on large unplanned real offerings ahead Uber. capacity shipper's ML a

business continues than to delivery predicted. have Our faster grow could anyone

focused to took world is we're improving and more ultimately back gaining even this because of profitable in margins. business many stronger, share is Mobility bouncing And and freight growth year, while more we the actions Our returning around markets and foundation. our past

Nelson, over Now and the outlook. details some for to financial

Nelson Chai

and recap I'll performance for what's the QX before year. our during closing quarter, the in Dara. on and high Thanks, a of rest the out provide sheet our level outlook balance

are of than right highlights business of QX each refer review press please financial better our outlined we had expectations, we our ago. earnings performance QX in months our results, financial release. the week. And to three detailed a For direction trend Overall, the section seeing is

North the our quarter-over-quarter QX in to coming improvement, prior and outlook. lockdowns adjusted bookings start execute in flat exceeding significant despite EBITDA company Europe. roughly continue elevated our growth despite disciplined from to delivery, gross cost meaningfully investments total We America Mobility well and slow extended led to management And

high Postmates We to be been delivery the of on often our to end. few far, question on level, remain good as the $XXX made of signs past in So recovery track whether expected even by encouraging the also we we continued come cities expense has our seeing substantially integration, asked the and to is appears million by reopen. the use merchants at in at One no. answer over platform We REIT's mid-year. rate to progress year demand? the Mobility business, We're deliver synergies the delivery Postmates expect weeks, run migrate,

Sydney, trends XXXX. versus as than two Delivery fully in example, we're dining remain has to reopened months ago. Mobility healthy growth returned even recovered For fully more and

dining reopened Sydney and in Similarly, partially Mobility. expand. demand their bigger to be to and delivery as appear delivery as services, even than basket back the a delivery fact, other New continued general, our us active we be In larger In continues sizes, cities City to York consumers ordering has moderate of opened frequency somewhat. for up, business retaining has

divestiture balance during Aurora the to business gain sheet. billion the to quarter. Turning recognized from of our ATG a We $X.X our

Our to cash, revolver, cash investments equivalents this with manage QX million ended providing million quarter GAAP net the to by loss from the of access $X.X offset ahead. the gain, recovery and partially accrual. short-term We billion our have from unrestricted with $XXX approximately $X and liquidity $XXX ample over through UK us benefited in

at In the Uber QX. balance several valuable were addition balance, our to recorded minority sheet billion on our investments has that nearly at end of significant $XX cash

some become and their quarter, future. suggesting including taken these and in may past others Joby, Grab the follow reports companies Over near traded, press to of steps publicly the have

comments will While for expectations Mobility roughly at recovered on last and second likely these some QX Uber of and of will April Uber and significant a run XXXX. views up for from of investments I'll XX% strategic evolve be of XXXX. early sources these maximizing our and others remain XXX% bookings the half some around gross April, $XX a In our performance thoughts annualized future, versus year April up were rate, few proactive value wrap my from the billion for in of shareholders. foreseeable liquidity. be the We'll investments are with

Mobility markets We continuing more driven by the recovery Brazil. to rates markets offsetting With expect improving in India to the headwinds and vaccination demand segment's in US several international to continue than to like be and take driver would decline expect adjusted Mobility will we XX%, revive base pressure QX. be investing Consequently, sequentially during in the roughly QX. supply, rates to which to we EBITDA also outpace

delivery, where gross over rate, Turning billion XXX% a bookings annualized around to July from of up $XX run XXXX.

continue year-over-year that post bookings behavior. delivery delivery of and as are platform even delivery as EBITDA as through delivery. reopening said, between efficiencies of network additions. Dara the to in R&D are QX, G&A continues increase outpacing we remainder and remind year, the supply QX rest to investment in in see we become the would to improvements predicting and corporate sequential support and to our to headcount to we investments for laid $XXX For driven million tougher gross the face $XXX And growth the million, and demand improving significant expect leaning mode year, the trends That comparisons you during Mobility, uncertainty initiatives Similar consumer investments. Mobility I we scale remain in segment. with in recovery will that forecasting drive out by should

demand and demand of to We recover continues And expect QX, with delivery adjusted reaching let's Mobility open margins that, profitability as track for on questions. in marketplace we the approaches supply, total second EBITDA significantly year. to the EBITDA Mobility remain up half the and it balance. to company Beyond improve

Operator

first from Mahaney Your line of Instructions] question Mark from comes the Evercore. [Operator ISI

Your line is open.

Mark Mahaney

the please. segments, Two could secondly, some you. comments think and that? Thanks. how there, a full Mobility how on since the the and risk questions, the comment about Secretary to and at got you - employees seeing ago that Thank get the week on treated response employees? on you we two you're between or gig made provide being or related two how as Tony And time Labor an you you've about the tracking update could - talk synergies you're Delivery Dara,

Dara Khosrowshahi

Yeah, absolutely.

far As we're between trends. the seeing consistent Mobility as Delivery, and very synergies

time we et continue last super talked notifications, trends. eaters a we see first-time I XX% Eats for cetera. think to around, from whether Mobility, or about of it's those coming CRM And app

similar to first-time And business well, masses Mark, on Mobility out as I'm even bigger see, will of actually the eaters trends when to actually business business. see going the of bigger continues for the what Mobility as growing for be audience to of happens side because Even hopefully, our that number really eaters, back example, full to And what get and our increase. will the Eats the kind run first-time pay that Mobility bigger, curious Eats of get number Delivery delivers of than continue we'll perspective, business is the channels the for is comes though forward. and we

have we're all our mature can these synergies, a launched now markets Cornershop So starting as the and are Mobility similar as for continue. little phenomenal, What coming a well. from pay competitor, Cornershop business, example, to explore channels Eats although, where we're Uber we pretty basically a we between for is of which free and in think see less synergies has kinds of and,

and Eats, Drizly that our between expect So et not this reaction Mobility Delivery Eats, driving to cetera, Delivery only businesses. when see business deal kind and but of see we driving driving Cornershop, closes, do chain we then

about this excited of think fully optimized And kind as do to are we it pretty we it. means relates we're So activity. by no

do also what premier will you and that expect the that leading more and do - business we're you we as other talk just will to You do local answer model advantage delivery create second can't differentiation. want membership And get the players think is the anywhere our want question, in grows, into to can have we within a trying our it match. to please? Tony, membership start membership, membership Mobility structural our really our

Tony West

afraid I'm I lost the So connection.

question The was? second

Dara Khosrowshahi

repeat you yourself? Mark, can

Mark Mahaney

with And sort take Secretary's that full-time should or Thank what long How resolution risk contractors or commentary gig cases? Labor to employees. through, issue? about Tony, some us reaction the the just get, help Yes. treated be associated think it end that to are you. comments would just the as the on independent of

Tony West

that not the obviously should and in individuals identical surprise is different fact Obama-Biden administration, makeup I the is this said future. dialogue. key Sure, want department these in that, say, a lead to yeah. of that one look the independent the all desire. of which And preserving just varying issues than the, solution today, We near that that flexibility on for on fact innovation administration. deserve while, said that meaningful space that fair last Biden-Harris they outlook, gives the of Administration the regulations labor think new has companies sort we can for that their Well, gig look, that gives workers, that they that issue, The issues. when real to for approach to engage offer I they're current all it Administration's who creates the planning that contractors think, that a these and protections opportunity creates on there that approach to think similar the They're at no they some not a views they them think late it's we have as dialogue the as are to ultimately the

to think a there's we're those and of for - And conversation. with benefits for work we talk kind independent continue look to here, bolstering for we opportunities opportunities kinds those protections. about of space So

Mark Mahaney

Thank the you for color…

Dara Khosrowshahi

feature, and to flexibility really have listen is And important pretty protections. flexibility then do by the is to and we if is going couriers, flexibility. about voters, benefits we're independent and the of not answer to hope again, comes have. we providing stay They from to you that And again to forward. perspective, as clear, independent. dialogue And to is what the answer And gig and it certainly, want time I is drivers We be piece employees. talking listen and workers conversation. think taking of and want research through level, That you that the, to it full done what to anybody, my the which number relates any one which don't that, work is next think

Mark Mahaney

Okay. Dara. Thank you,

Dara Khosrowshahi

welcome. You're

question? Next

Operator

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

open. Your line is

Brian Nowak

my in situation Thanks now questions. you're know one just - coming XX one for back I to you labor the and living for two, have Tony I for while. Prop taking with discussion, Tony, California Dara. a for

changes compensation past You made this quarter. labor some to the UK

when and types Just talk platforms, profitable through two types the those be? about Any those operating Then driver and a managing options those the sort through of learned the fast the in or now second that could scalable on the of passing liquidity one, synergies of you've thinking how across pricing How the of markets, on sort you're number from what to network? of platform update just and members us of Dara, of talked platform. sort you about as subscribers sort seeing side business growing? is of you're

Tony West

independent, prefer which work, independent California, So, approved I'll have on Dara we've I prefer in that and that's by drivers, answer the the a premise Blue is the the Prop this - premise And answer, start. that of earners borne these a voters. that is out. model sure. overwhelmingly one gig think XX, was particularly learned Look, on you touched I'll platforms, in very have things you that in state last the

And choose, a can you flexible finding that benefits people the In we that see category made earners in these and only and that, we over work, drivers so to have the protections that frankly, have choice do choosing again. like the jurisdictions. well not over as as to UK, we being on - we're solution are where we that sort voters other that possible independent maintain earners third a it's where of listening There, repeatedly are deserve. that would have to and platforms to see flexibility

resolutions of that have kinds of issue. different The sort to learned reality while we solutions that a in And that different, very a frameworks jurisdiction to the they're a have is that have patchwork because is you it's things jurisdiction all so real you you are deal of every every workable with. this won't and single model is, and solutions one have a these that and one-size-fits is

in where in of like types seen things states in we're we'd to and solutions of able jurisdictions, and so work other California, these the And kind upon with some to and benefits UK draw able in in see bolster we've be that of to places other protections. other independent the

Dara Khosrowshahi

engagement also And grow. higher And most per free rides to continue then is month quarter, recent as number actually increase good free membership been And metrics, in with with last focused addition percentage to of what it especially we've you continues can deliveries GoPuff, see trial converting consistently, to that non-members. there. our our making where members for we continuing members trips memberships, progress paid on GoPuff members see the membership, into us on membership have benefits, higher paid can members to benefits really and most our our relates is a of higher to relationship kind than deal you This - much our we're more recent of as for also example, well. much get and

the to focus push now, and drive membership is seeing. of the right So to free differentiation increased paid members really engagement we're members that to the continue the starting to

Brian Nowak

Thanks.

Nelson Chai

Nelson. is this Mark, And

Let answer me on just XX. on jump in Prop Tony's

slight we a the the right, costs, again, see demand pass haven't to we've cost did of And benefits. of side, from any in in perspective. impact regular been we the able the a on Mobility So rider. seen And because increase

much of the from New we And as seen on - have a passed again, York we you side, know, as Delivery we've like demand impact places before the in And cost. seen the this On perspective. any not well.

to So our dialogue. said, continue going as Tony we're

Dara Khosrowshahi

power. that us focus in on. playing continue for player advantages be for advantage we in pricing scale right areas the in one and to is the think the companies field the thing. allow to think the we number of And And we're I most we looking the field, light Yeah. level has the playing and get other network advantage and global that do Clearly, our UK, like the model level example, what to markets, a

Brian Nowak

Thank Great. you all.

Dara Khosrowshahi

welcome. You're

Next question.

Operator

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

open. line Your is

Lloyd Walmsley

supply help the Tony. on early as Dara guess, food - or just delivery supply that can to anything challenges until with bit share driver up of unemployment driver seemed It we we're side? the is delivery? And I applicable to unemployment guys that on more sense tail the supply the Dara, off the I European kind December into Any moved you challenges when well Mobility give understand just since pandemic benefits Thanks. coming of more would insurance? for having regulatory food to Nelson, like guess pandemic, just Tony, really you can helpful? have us we us have and Is aren't around be food recovery? wait Nelson then, if delivery can us into give start into one scaled an it you, wondering during supply a Is driver the but a drivers update drivers for you one if of back to where environment. sort the

the side. the have made What's Germany, latest think, the been Switzerland markets the negative federal and in rules good Thanks. of EU changing I to on like other progress regulation? guys, some and around Spain You like outlook at in but kind have markets level there Europe

Dara Khosrowshahi

at Listen, sure. we twitch both very increasing demand especially, - driver decreasing. will and And the with demand I is during muscle see is slow way think would that describe or supply. the start is I'll high a rates which fast supplies in Yeah, that driver I supply, times it that twitch. I

to a so to right a the in Now, hurdles qualification, and adjusting other becoming right? vehicle, a we pandemic, The supply courier to requirements, terms see hurdle, speak, the drive for people for are the to after regulatory hurdles being driver And than higher person food. just of of generally example, adjustments slower.

of of COVID, food. of as drivers. drivers resurrecting again, concerns other to So a some board, for people board there's getting versus, on heavier that can it's it just drivers imagine, safety because you lift, drive bit - dry And a hesitation on to the greater come a

very courier quarter, There top said, on accelerated safety quickly. more couriers. fast, growing even because last adjusted really Eats and growth rate no of were we cetera. concerns, the need on our supply so to That So pretty business our high is bring et

our We our are food, - back as drive we're we the it higher, opportunities of coming people demand drivers we and seeing cross who less the on, for are them and I we that right, encouraging that's are new network and people just which we resurrecting network telling earnings are drivers kind are We're in actually now. more that advantages is think because one a food relates recruiting have is because advantage whether have. that that between that seeing dispatch driving drivers platform more drivers of they're people, come the a And higher signs to opportunities we're high. the so back their to drivers earnings seeing or to have

we time of and this think So operating do lean that all marketplace but direction the will to in we moving I that metrics we are and have leaning think we in, that see are in positive talk the the and already effort, will some some in here? green of shoots seeing just take to has result focused It rebalance want and you real as do both. past. I'm a Tony, operational it as

Tony West

the different is I think, that folks And that won't systems, And doing with at engaging is with about very regulators, consistent end they different involves that drivers there need, goals that talking, think, as with efforts. want I countries talking we're the we - the position in we're able make those are the forms giving our legal really of before, we're this of with we're in reminding really Lloyd, look, since kinds kind who our we're a much But solution. Sure. that is to are And to progress conversations. of of policymakers engagement, sure see Europe on law, finding world. we one-size-fits-all make protections having it all what over forefront - we we actively are different while flexibility. said many employment and Europe, is of And these retaining

of white published yesterday. new And a so set governments. European representatives together work. standard platform last companies hosting quarter, just come members roundtables for which paper, with a We've called and business policymakers for platform members, instance, been one to social participated in on to we senior Europe I and around

So get there's resolution. lots to continue we to of try that to in to everyone in where there a engage efforts a place for are value

Lloyd Walmsley

Okay. you, guys. Thank

Balaji Krishnamurthy

Next question.

Operator

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

Your open. line is

Ross Sandler

guys. Hey,

want to and Just Eats. follow-up on driver/supply the on then question one

at either supply So be the back Like issues that used a stimulus the holding it drivers of seems in factors benefits? to of rent would and come they both economical, other lot are cars kind online. I kind can't these days. pre-pandemic, even are those and buy unemployment there safety rent $XX any of know cars or would the car like order And you besides an of might hour,

are So that nature competition the factors for it on And market, market? other the those supply? on Is the Thanks on And your difference and the versus versus side? charts Any function color the offerings the profitable are between markets? color convenience the there? Eats, the then thanks difference in driving a pace eat those of what's new in in lot. unprofitable grocery the of is two, like time biggest the of some the Or on the holding unprofitable any of back profitable between there markets. that, the

Dara Khosrowshahi

take can second. I'll first and the Nelson take Sure. the one

are - In the terms Ross, supply, factors earnings opportunities. then of driver big safety the and

have to US with to are ourselves single-digits to the cars to that renting is vaccines. that US. car think think to who supply. dealt being as outside low we It small. biggest safety, it earnings get do opportunities relates the sourcing will issue or and And the relative of drivers programs help then And the ahead both we and in of relates is opportunity car I be want a extraordinary. pretty issue The cars, as is secure it

like drivers are we're that them as coming trends back we expected the again, seeing, to. exactly So

think does week-on-week Our are making get up get - on QX, see a focus that the the do And we we basis. putting sure you're going so. a and balance, sign-ups back it into to into of certainly we're lot as to marketplace

don't I being So all. rental at a problem see

want... do you Next, Nelson,

Nelson Chai

Yeah.

do are have definitely the top profitable, that of five profitability, now, are strong profitable. we XX say would we in over is countries I terms are total our have a position. right In that market characteristics countries two currently And what of and

around the leverage I have at pace And past. We about momentum. well. been getting doing sizes, operating we've good actually now we've business really, really we our - would high is talked really tell is and actually And world, what basket in that we're the right and the extremely you gaining

Our model is working. capital allocation

So that a year, we're on we've number benefit because in. about actually the calls. marketplaces the And last of we're talked in operating scale countries getting we're exited which the seeing we previous

still of In we're in competitive. mode, would say marketplaces the they're investment highly I terms where

profitability actually going and Some and that public actually And of again, think as But a still we now well. back - you some the business all achieve of about heard can delivery as Dara's the by year, and have companies the they're commentary, our are we think in beneficial to going of we my private half as confident commentary we end. year are plan. that good

Dara Khosrowshahi

- versus we're to not and you use little And Nelson because percentage you habit, to average come add grow on to a to of of said, loyal very, out in bookings. bit of price as then is of your - build a they have existing incentive of Early on, markets able more price. kind you base. in back incentive we spend, and unprofitable as this just patterns markets, user what markets cohort that And user necessarily very profitable from spend really profitable lower to users, a see profitable some the

much don't scale, because back kind of on Second is of transaction, and becomes users able deepen, and scaling. And more of need as cost start businesses starts the costs, able scale we're come existing because kind cetera, these to your are is scale these efficient to to again, your is overheads bring users you larger percentage variable all we terrific. again existing per new can - of many much cost again service, marketing which as users your costs customer the then and as to of et

variable marketing in you costs, market. then and to the the in both you chart our profitable So and that get can it's - get do which we've scale formula single for to our fixed terms This financially, that I to And country. of we consistent. linear its every formula costs markets in pretty And supplementals, invest think see overall, in, its means got exactly what having profitability have is a that business profitable incentives, we its in scale profitable. not working. us, to more investment this we're It's the absolutely getting But less are the to is know markets,

Operator

Your next line the Justin question of comes from Post Bank from America. of

is open. line Your

Justin Post

Any of a more assumptions would or costs. in costs offsets market time support your other and with think you've in second, business are And share market just or rides be a couple the of maybe with the lot labor now XX you to ago? just Prop changes, increased I'm about Thank to you. long-term any Or Dara, competition. But UK, normal had the A in related years then you've - that? versus update UK on with help or share you as changes the wondering, of interested experience helpful? had market margin the inelasticity more benefits? always any question. Thanks. Mobility for Great. on there's elasticity the questions. couple will controversy Latin do And America People really Nelson,

Dara Khosrowshahi

I'll Justin, So start.

So targets, has then much don't elasticity - there. targets. business. price long-term in made now there know, when our you in And a There no, see we terms more we is some we of run those changes as efficient been any

We're us the capital to growth kind we're the really allow well. terms of the And some see the so that from of our that the that seeing And that. some last leverage. And execution has COVID lean year, to you single seeing get we ads is we recall continues as the allocation determination on get sizes. can actions are took larger in as and actually of of quarters as of early model to bought that come bit we little starting a traction there, basket benefit biggest past, the of

profit we not about, right part kind as an important of margins that it. But of those the in to in post-COVID target will right think again, of world. delivery We're side So the now walking you terms margins business be the on investing getting getting away we're from the back, do of now. see that,

again, think our about we optimistic optimistic. where commentary, pretty we're very you've so from I stand right And we And are now. heard

Tony West

news as category Justin, category key position, side. the France. our I'd improved it's a of Brazil both far in bunch good competitive, Mobility and story. We've markets, as Delivery a And the Yeah. our maintained the continues is position, quite actually and be - or say, to actually on Mexico Australia, US, UK,

battles improving better past But going delivery we the fundamentally good. a picture globally the business It local I when has two it for business is really been really picture than So battle there's and is kind there. pretty all the The big our have step-out time, on in looking look at of years. globally. and and mobility

Justin Post

Thanks, thanks Great. and Dara Nelson.

Nelson Chai

Thanks, Justin.

Dara Khosrowshahi

Next question?

Operator

the next line from Anmuth Your JPMorgan. Doug question comes of from

Your line is open.

Doug Anmuth

so Thanks much.

Just expectations caps in any industry or commission on for I also anything some of about talk bit about and timing Delivery, and reopening, restaurant just around we've Thanks. could pricing hope you changes comments into your seen to thinking offering you're there, how terms positioning little a then recently. potential ease? your and just

Dara Khosrowshahi

Yeah, absolutely.

over a into restaurants, in supply, acquisition. now restaurant lean partner have global pricing on restaurant we're So to We basis. of partner continue - XXX,XXX terms we

the years our for grow base, to five supply really next expect least. We restaurant at

promotions And And still Our are a that's is both to them as relationships is, is as dine-in And side. that's Delivery it we business. basis And and we some partners a out We getting with can pricing can have restaurants, on their some think relates just have and interesting a players marketplace think in what's a continue And pretty local we marketplace. And business restaurant the a We on business. includes with there. days. watch competition to on clearly, of the core our as think to penetration think interesting with out. for business walk Delivery a getting everyone's bit establish think are - and quite going I we that, pricing about models we all goes. while pickup. us, focus people more are have different, our other we fundamentally Mobility having a part approach competitive better our do I the in relationships business in of that reopening think of into think I many restaurants we is seeing as early in scenario, benefits markets delivery, far even

going the it actually go, volume. think opportunity, is relates that the but there as of - is as to of a that caps our accordingly. restaurant is pretty business And pickup then, we we to can have certainly think pretty partners, better kind building And so restaurant the there our a overall a our forward. as partners. I there hurt organically, opportunity seen portion let up are be standpoint, business it where differ don't free small Our big pickup far markets fee think net caps to do from our speak. demand from we think there us to caps, can we to in themselves, Essentially, per answer We to as adjust caps, where market caps. restaurants We adjust But increase repeatedly a being which are to are relates that, going to that, fees, city-by-city. demand model model fee caps a, fee profitability it's negative fee as have relates forces higher order fees, where it take do as marketplace which to care balance than margin the a it it, markets in gets delivery standpoint there'll and the adjust call can delivery of we free

Doug Anmuth

you, Thank Okay. Dara.

Dara Khosrowshahi

You bet.

Balaji Krishnamurthy

question. Next

Operator

Your line from comes next question of the Jefferies. from Thill Brent

is Your line open.

Unidentified Analyst

rate versus think the in down restaurant the trends the the then for in to This between John way is or Mobility take everything else the Thill. the QX. there a on questions. core And One, Brent side, new about terms on combined second growth all going food Delivery the is [ph] of question Two initiatives? rates

for mainly supply In Or terms you. else about? incentives? is the driver anything Thank that there of is think factor, to

Nelson Chai

question, first answer second But So the the Dara let on I'll yes. question.

both on As we and leaning into driver into the We're second said, leaning quarter. the the we're courier side. supply

And again, is really that. the around so commentary

So yes.

Dara Khosrowshahi

terms rate and far $X of verticals And talked the run new growth for about being in bookings. at we billion a as as Yeah. the verticals, rate new food

Our rate. billion overall at is $XX business run over

So QX a math the business you the stand-alone you just over to relative the overall, do think both on and accelerated if And separate basis. business can size. I as food the QX

so the are it, look trends friends, remains you think and way we to speak, any So the potential at enormous.

Balaji Krishnamurthy

you. Thank

question. Next

Operator

from line Your next Tom White from Davidson. of D.A. comes the question

is line open. Your

Tom White

some is the York obviously, just guess Great. delivery the guess I share There's evolve question. that seen regulation a for you some Thanks may kind It for can you the to I platforms on food noise? taking are I been New few a data. how seems - regulators delivery over and labor is of or kind for about maybe guys Mayor think, to my Yang, to question is one but bit starting increased regulation in questions just the kind a there. area Andrew had make you follow-up I lot front-runner characterize customer attention next issue, guess and been on activity, have but I others of food years? share calling my Delivery how of like of pay classification more there that's think

Dara Khosrowshahi

nature, money think local with. on local a sure have we've city Mobility basis business. one. and regulators, we're uniquely regulated with dialogue usually, to as in right? flows a are we that have local regulators. our the with have these regulators And city, that Mobility every we We're side business our And day begin dialogues guess make there. tell The side. with you on local us And I it what And you I Delivery live are from really that enter been on relationships Tom, guests experience local would I prepares important state so to in relates government we Yeah. constructive to the really already to is

of forward. model needs model And dialogue. a the that want going with I business have aligns - think welcome we we So the cities again, the to that business

at relates done look leader we've you safety what we've how if as it on safety So been to a and reporting.

over If we've by all-electric our you many of XXXX to is markets at on in done major and then and be all essentially pledge look XXXX the world. what our sustainability

the These skating going on where where forward IC+, at will create If of serves you - our model had right? a that regulators And importantly, versus model where the as only situation. leaning the short-term, to been. that model well Delivery service not that communities It more I we've with but drive create our will it can a it's dialogue are long-term partners about will look shareholders. all a think be thrive is and kind can same and thinking and that on as based

Tom White

Great. Thank you.

Dara Khosrowshahi

You're welcome.

Next question?

Operator

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

Your line is open.

Jason Helfstein

kind demand do Thanks. you you kind kind more I in the not Thanks. in made the given on you hasn't two bit a guess kind will just that tells you of the just then more UK and that have that be in can from questions. ask know around now, to about California that I'll do talking we drag changes of XX still how talk data pricing of that that been One, And secondly, have business? of normal role something like US conditions, or and we're grocery increased or particularly and your around a XX you that? cohort months

Dara Khosrowshahi

Yes, sure.

maybe our larger talking There of drag how on has look a is be pattern much as life gone potentially differ going willing far to consumers we to grocery the second demand, in exactly think cetera, right, et - that addressable as food. which than for we is you're a delivery question absolutely We're life we service. a about by and you far more think that and we of in the that post, to we've can't development, have kind what's And global think as will is future when total pattern us, mobility economic tell for see is absorb. percentage change both consumers And I significantly seen the far it's significantly as And businesses And service unable California will what is as it? that It for. to know us. raised we - different. we listen, have generally, seen trends I Jason, pricing we of predict grocery, happen that, power, earlier in on future. is the this from our for have generally, a business any market be going online. significant cycle et to important is growth isn't And cetera, when be terms rates, consistently the in are to our markets? at the outside California, for pay And I California and suggest want significant California in behaved as versus grocery Grocery us you a initiative non-California that valued markets of with this would the cycle We a what how got versus go. prices that difference kind of don't pre, things business.

and to very in be So of we're Instacart in is US, competition we to then others and on going and we're for be corner Europe - battle continues progress efficient period a In going And good be Australia are a have excellent a grocery shop. some very in time. the and number we corner growing versus that Latin way. we're front. going We and countries America strong of making US really can to competitor of other the I think think service to grocery leader be going unquestionable to in the a very, in the shop gain share this because

more of expect really obvious to months now. our be we to importantly for grocery ago So XX months significant percentage business, for - now pretty a and XX

Operator

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

line open. Your is

John Blackledge

Great. you. Thank

of the there delivery user issue? that be seeing rising the How scales hour. outside an supply. efforts, consumer one of supply And delivery utilization anything as markets the your driver and within evolves where US impactful then can of kind driver offering kind kind centric rates? key the get First, the are any US will where Are you to to the on

Dara Khosrowshahi

all much And earn. as vehicle call cars in state see for the even for efficiency relates now, safety drivers has It's or more US the the the to or more demand Delivery and just to But utilization as vehicle needed, growing, we to it grocery shortages as side, markets. do e a in driver balance, think it competition. courier than that adding transaction it across cost utilization, pretty for right earnings. and in and two then this a actually, improve US the efficiency going high ecosystem issue. much courier Mexico, is courier the the and it's of offering, growing Mexico more although with and service has to But marketplace. is drivers is our working because business as a it rest as our which to patch our ability of well, growing, you the Eats than drive going of is we're drivers a So on amount the We at essentially think us per to is our with, issues, look this business as do the we partners versus do to as far gives easier greater delivery into advantage it, get speak, so to really, well, as make of couriers to with world Uber those vehicles

model equal our of our being cost bit So this and time we do have that all a have. patches else of over drive a transaction going trend, unique don't per that our we cross many think improve players is that kind or others of utilization as we to

John Blackledge

Thank you.

Balaji Krishnamurthy

All right.

Next question.

Operator

line Street. New next will from of from Pierre Ferragu Your come question the

Your line open. is

Unidentified Analyst

in this that do you expect we what hear how of tests Hall calling driving, evening, have you have introduction just from this on kind and Good much in [Indiscernible] mind. your mentioned platform? experiments advanced stage ] are timeline, your and Thank the autonomous And then more Ben [ph] is you. at So since What on most of in you there to for front. are autonomous this Pierre produce cars made a question

Dara Khosrowshahi

entree ATG truck Yeah, efforts, team we Ben be we has of forward creates can and And is, very with merger then entrees in makes that segment. first side, to on type a lot or going business Aurora, highway kind an autonomous it we is and easier move relates leading kind foray we established Aurora. pretty with earlier autonomous to a an is being to in be the trip have of Aurora activity, deep trucking obviously as think considerably. partnership more a is in it think of is autonomous think and XXX-mile freight. easier. which a And their Aurora the potential a on to of trucking - the highway or of trying relationships is

an entry say, a there. be appropriately in trips types position into or from come we to being some has be and streets. But to autonomous Let's XX being to a speak. are of we certain of able let's And go technology will is dispatch to are advantage autonomous, when time market. unique take us be so of rideshare hit for that to something this But industry. that a able that that players, the to in the safe, city the And is this going it's a say that's to That the are robot big absolutely will take to and safe human to - time, easier. of technology to our is to other advantage to

Unidentified Analyst

you. Thank Great.

Balaji Krishnamurthy

Operator let's question. last take a

Operator

comes from final of a Citi. today Your line from Itay question Michaeli

line open. Your is

Itay Michaeli

everybody. Great. Thanks

a business the Thank Just potentially OpEx, one take of target would to helpful. from the be in provide additional you Maybe go bit investments Anything profitability is that room you need? could QX? expect talk more whether share make EBITDA can for context on was me, that quick and I of some adjusted various bridge conditions there beyond by about Or hoping year-end, rate you terms terms down you in would here? you. to the one

Nelson Chai

control, in to order of levers we year. So our believe profitability enough against back Itay, in deliver we half have the the at

on we as are. about world on where executed make be feel We and open. in courier as today. to a driver substantially time position particularly We to sure really difficult there, to are flawlessly we are continues good right, leaning US, to the we the to both company in, the said the are the very during we We we're - where supply call, year last the side

high degree we so of - very we We we a know levers. believe, to we're going And the pull And the levers can confidence. now. have

are So the management Dara rest team the of committed profitability. and I and to

bridge we not it's again, so the se, there, know can levers than will. and to per a get that And pull we the other fact we

to what the to do the year. need do get by profitability back half the going definitively are we so to we And of

Itay Michaeli

Great. That's you. all That's I have. very Thank helpful.

Balaji Krishnamurthy

I Well, right. it. very you that's Thank for All everyone. think much joining

obviously are revenue quarter to see in form looking am quarter, terms having our future. to joining terms best starting great to green ever our This near of and for best shoots, the of Thanks I everyone. ever quarter bookings. it's some forward very in reporting, our in much

Operator

That concludes today's conference call.

You may now disconnect.

Uber (UBER) 6 May 212021 Q1 Earnings call transcript