Uber (UBER) 2 Aug 222022 Q2 Earnings call transcript

Company Profile

Participants

Balaji Krishnamurthy	Head, IR
Dara Khosrowshahi	CEO & Director
Nelson Chai	CFO
Ross Sandler	Barclays Bank
Douglas Anmuth	JPMorgan Chase & Co.
Brian Nowak	Morgan Stanley
Mark Mahaney	Evercore ISI
Bradley Erickson	RBC Capital Markets
Eric Sheridan	Goldman Sachs Group
Deepak Mathivanan	Wolfe Research
Lloyd Walmsley	UBS
James Lee	Mizuho Securities
Justin Post	Bank of America Merrill Lynch

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Uber Second Quarter 2022 Earnings Conference Call. [Operator Instructions]. It's now my pleasure to turn today's call over to Mr. Investor of Head Krishnamurthy, Relations. Balaji Please go ahead.

Balaji Krishnamurthy

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

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

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

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

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

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

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

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

Dara Khosrowshahi

ever cash our range; to free of $XXX economic and million, our run remain exchange million. rate QX the well incremental global headwinds, environment deliver EBITDA and to gross issued satisfaction we that with in all-time another continuing shows time durable and margin and while and Thanks, annualized technical all-time Despite improvement in cash of growth, all the bottom invest growth. of foreign an high; strong long-term confident high line healthy Balaji. yes, an progression, Uber quarter another for first the ability strong positive guidance and strong delivered flow, free $XXX uncertain considerable and earner responsibly flow $XXX billion, EBITDA bookings innovation, top we've guidance and above

said profitable and I've things intend secular and as benefit continue before, in to on-demand manner. spend to we shift retail let's tailwinds we As on transportation a the growth and -- that, back to as increase continue a With we these people open services continue from in spend, from questions. well to the of a capitalizing call

Operator

[Operator Instructions].

the First with Ross Barclays. question is from Sandler line of

Ross Sandler

Just questions. two

from like be to you today First, of markets competitors even Dara, lot gaining versus some the of would private a the how pre-pandemic? operating smaller category are retrenching, characterize are environment larger your You bit. competitors and a share, overall seem struggling

from? getting Uber margin. would flesh coming another to for second That the question, the assumes the life is Can first question. solid So easier where out then be And guide incremental just just Day? Nelson, seeing you that you XQ be leverage that's margin fixed are talked cost kind Or you more at had time? over expect you about that target level that Is reach that the see successful? above XX of Analyst top markets to

Nelson Chai

for thank Ross, question. the you

first I'll Nelson. go So of in terms it's the guidance.

a is, side per improving. seeing transaction delivery on margin revenue perspective, uptick as all, the we're first real So from is we're cost -- just the what just a of

cost And you getting good team across job as leverage really of the are then mobility referenced. efficiencies We're that And a doing in so there. fixed terms both creating improvement seeing delivery. gross a we're profit and we

that we well really proud second So quarter. of really again, And in now. again, operating performance right the business the we're the is had

on up it keep operating to year expect environment. of the of we the balance so the regardless And

Dara Khosrowshahi

All making think, of right. at is that environment drivers. that's for margin are well. for as time, economic these our discipline, standpoint, there's free elevated continue The et listen, we goes, our this are no able years, a And capital from hailable, time, affecting stronger one operating inflation we've I to, vertical seen question in to wishes the in investing environment the scale as and -- same and same Share to and flow invest able relaunching UberX cetera. competitive as in tough of Uber operating us and for we show or the But business our including because no generation as terms a the so you've At environment, because far Ross, increase cash us. many been this of in new environment investments

advantages sometimes So extent environment, our to be we advantages, brought of invest outshouted by platform top in line continue And to just a by spend line different the so top some that that continues were in we global to also that higher durable. we scale brought, growth the kind the competitors. advantages

then think start of far true platform the as So as and and important, again, coming becomes which, diversified discipline the the are really definitely and to more else the floor. we're Uber, that our players as in diversified who kinds I global environment we the we where are advantages, players, players, And an most the larger more than businesses footprint. have capital anyone largest players,

continue And we competitively have look when Nelson environment, is I the since strongest environment felt and and the here. is. at will globally started environment get So better we the overall competitive probably the hopefully, this will as competitive

Operator

line of question next the is Doug JPMorgan. Your Anmuth with from

Douglas Anmuth

market, a it discipline obviously been exercise experience in to but about like increased you've incentives. able and the discussion the improve incentives driver of Dara, seems on been lot there's

you in about of doing of of free the And hope just here EBITDA about and could interplay So talk years. the XQ about just two how thinking next you're flow perhaps the above the more talk some can relationship couple you how you're then, the driving Nelson, cash that. in over

Dara Khosrowshahi

Sure.

et to business. any as which right, our go, of is, able But As spend things. started Listen, we've overall been is are cetera, really apply in on incentives, to here. absolutely earnings discipline going drivers glory X you're your to One what to far focus you can't be. we've the way

onboarding and our X, on levels essentially process et because does longer, and drivers The the move higher. what very drivers earnings experience all bring platform. for we're adding And what look is quickly is are where Mobility improved driver experience significantly, then them driver I being including they're the Eats then able people of retain very, second to we to like the over think once new has for combination platform, cetera. first can the deliver them for on to our onboarding to working And driving

our on your more Then of invest fare like shown number much upfront, new up earning a in Uber out they in the have gas. using which program us destination to And well. all including off in then they showing Trip buying debit about experience of the as chiefly a on rolling that card drivers the X% innovations, So drivers new to us use That's X% just efficient able have your platform. result gets you've the full our experience convert than allows earn now for Pro been showing a utilization high drivers, essentially at driver of loyalty a side And Uber bring who when ways seen earnings. and onboarding on multiple has to new very, our levels, experience being driver in high on incentive getting very we're with driver that higher upfront, Radar. onboarding innovations cost, past, being lower are in an at percentage more better flows overall as drivers to interest resulted

all result per economics, the is down earnings. while taking only hour, a utilized of we drivers tends $XX are efficiency bookings incentives system. And the So more $XX overall driver is who through attractive of in that at as as earning U.S. about pay the very as hour cross-dispatching percentage to drivers our are are Mobility the strong are a higher who making an drive which this

earn very the in it's numbers. competitive So place machine to retention right we're and driver a is showing working, very, and now, the

Nelson Chai

Doug, on question flow. on the cash

Day, about adjusted flow free So I if made cash recall the by annually. trails back on billion Investor you EBITDA $X commentary that

updating of flows gross percentage not we you, you do for that I so as but as say improved, will through margin number that we would obviously I'm line. a outperform of EBITDA booking bottom expect helps what the see terms So that just the in the

capital then but working direct very in more We our a is And more again, note, cash EBITDA important it. little annual because an not financial much a there is are to are and at spending flow of of cash different to correlation managing time terms from thing. it's looking statements, flow bit it

example. an as QX in bonuses out pay you So

crew benefit the in the quarters. get You of rest the the bonus of

do to is flow better the you expect see that we'll I cash actually number, GAAP you'll do Free as So a continue us billion do than will. target. it. $X

So not in and out. adjusted it's like

And when proud. so moves steps during we the asset time the all we would think knew think this continue over sense, about really light. there we're we now to we get will but it the all about be platform makes And to update you again, took pandemic because if

build-out the and Bay were thing estate of past. other Additionally, on the doing real some years is we Mission some like

stuff behind that is us now. of most So

think current be really operating strong flow And think myself should so which and you from I the really, cash business months. probably you of couple heard as past the generator, and about Dara over the platform, a this

Operator

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

Brian Nowak

sort versus update spend are frequency just of U.S. times supply I'd curious search Uber, targeted you a Nelson, So One, riders helpful? XX comes a users to and One past the book go the update you well, and it -- million What sort per have Your are where couple on can you rate? Anything user seeing in hear? And Dara questions. on Uber where I of the trip, on wait where Uber as rider little average I to of you in those of actually be? user the in are in we on on to and us on conversion new metrics? terms been how versus a have Anything when bit base? be wanted

Dara Khosrowshahi

Sure.

which in to the those right to in down the supplementals, graph moving direction, in our XXs. move that's direction. of the far kind experience, continue coming the in want XX% but metrics experience where they're trips have we times, actually in wait surged teens, of right the in July. metrics And of not We We're U.S. As the about certainly surge as trips. now XX%. from is in a the be, terms We're

to were they in minutes and times right the at average an then now, to move continues And time X.X surge running direction. in X- U.S. frame. are wait the So X-minute of

more have over metrics we standpoint, that of period in to looking to that of work very, very now. from nice Again, the the So is a stable a are all of Conversion it direction. time. increase experienced But do is moving ahead improvement. We're us. right

when And the stable. on XX% is the continues we look a U.S. conversion number sign-ups basis. the at where up So driver of new year-on-year improve, supply supply, were in to situation

of in that inflation seeing and up, So as a that very are over platform. plays the we XX% living for cost of terms on And earn. in them of to have them a -- flow what you new on earn cost they're information, as unrivaled experience, the to part coming signing now customer when to drivers said And our experience, XX% of in flexibility, be right to you to earnings to of who decision the we And attractive groceries, Uber strong really we come able on is right will driving continue that for quite continue want. Uber more a now, attractive. are better service, an know, alternative. where And terms platform you the work think driver want, of levels the being have

very us very, off. So the stable. month. demand summer months big stays The September looks QX, really And then right it for marketplace now, strong. in is takes September a

best there. on is the making while back-to-school ridesharing the right the experience very now, experience that September, focused and So team the right direction, the moving out very, experience sure plus in are metrics remains

Brian Nowak

Membership.

Dara Khosrowshahi

as very the terms we're that trends seeing. of far membership in As goes, positive we're

markets as We globally. delivery nonmembers. this about at Uber That's stars time, we're at than bookings has for bookings of in of And of generally, engagement to have as members. member. benefits million the are of on of members. about about focused now come Membership is kind going Uber point. delivery. being One. now a Uber in XX% period well. Over X result a seeing XX% our Very more been on overall now increased about mobility from XX And excited a One bring X.Xx launched as Members gross we're gross

a a and as it's engagement significant think it's pretty well. significant pretty lever, lever we LTV So

we're seeing first for us, the customers, definitely I we of add Eats. end have Uber would got terms with like is we we've membership. rides what So and that, what both to with course, in greatest in front we and bring of

we into bring cross-sell monoline So membership other platforms. new can them than We on cross-sell then customers. once customers more move And customers, well. we we as then

ability bookings of for per to the a strategic cross-sell, advantaged gross ability and that to the strategic just is for us, So strategy. audience us membership is drive piece structurally

Operator

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

Mark Mahaney

Two questions, please.

during because your the businesses First, do just ordering, of see economic something still any -- your side? size smaller earnings if being phase delivery the business this markets basket in to talked recovery part are particularly can there season, anything that in up? so that's of indicates is in about risk then those lagging, impacted recession back that on the of And macro. sensitivity? are by that is that segments, you you that signs get segment markets Lower we've that secondly, about much talk still can you to are mobility and there's And

Dara Khosrowshahi

I'll second one, do do and the the first Nelson will one.

would In Francisco, terms only if Los more really that out I the are ones San point in that Mark, lagging San are Angeles, nationwide can still in of markets are lagging, recovery. Francisco, you Seattle would mobility get people that U.S. help. the

cases these up, we've opened us going for pleased a and of pretty people well. at doubled has as the is travel use on the to use very, has look basis with strongly. cetera. very of Business, has et recovery think broad, recovery business on terms some it's for very case do basis. But it otherwise, work, managed a to cities the -- got I our been in we global When Uber year-on-year now, been back

U.S. look so starting pretty couple the a travel to the there West of well, the is we the to we back we cities and broad. as talk Nelson, recovery where as to are getting Coast is everything expect trailing. companies want half. to are when But So continue recovery cities, go inflation? still Mark, second improve overall, especially But into trends you better, in is to

Nelson Chai

Yes.

across more levels. right? So question, obviously And trade seen look tell So we actually you. depending seen haven't income of major actually Mark, and And cohorts look terms second more peaks we in COVID at activity. your at we trends it, based any haven't on down we've is countries. We spikes would seen on discernible what I still

recently so impact delivery. you bit saw more that than COVID far. trade little seen been and COVID we've happen spike so there spiked demand Japan, at the But and a recovery still So it's on least for inflation, in things about

Dara Khosrowshahi

system. drivers to in on helping say inflation come us to And a decision some played to for part the evidence coming could where base their the drivers extent, seeing a to it's consideration has it's XX% on Over significant platform. very and we be that of

Operator

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

Justin Post

A maybe just couple for Nelson.

looking a And margin that in were Are of second above improvement, the First, in quarter. we just forward improvement, $X is for the your that the think just I behavior economy? question changes areas? your on or you've is delivery, then the that some second focus We're are on And of obviously, wondering half. changing trending Has changed? something in outlook? acceleration there because billion that if pulled versus really the you margin some big

Nelson Chai

Sure.

'XX targets. So the first the question regarding

we lot of ability our So them to terms there, laid them. in a confidence hit of when had we out

flow it you we're really confidence cash to performance helped in we've working that and and company and future both the going Yes, we've margin the hit at importantly, growth, obviously, you operating to guys give managing on and least so of EBITDA. the Dara been well, them. And -- been across terms investment started

now. is company the so right And really well operating

And as bottom continue you both us the that we the you'll expect well margins so to I improve see do as tell line. would gross that

for invest should will future businesses that and us and bottom And that, to the continue improve continue. continue ramp in the you see expect to line. You'll refocus

our we have go of in confidence so terms And do of a ability degree high that. to

on margins the that if be Nelson trends the any see ask yes, on In we're I going now, the terms see would just just tell you what's delivery, will top We on back could be but the there. me, operating you and specifically mean, right side this -- of I don't and the is there in the EBITDA talking, you we're better. delivery will half. on

degree high confidence. So a we have of

You've heard have. leverage us talk we about past in the that

we'll levers. so the And pull again,

to guidance going our make intention. there, that we're we that's the -- at definitely, we So least out will put full

Dara Khosrowshahi

is last business I XX%. us think foreign we delivery grew you other has against just exchange. Eats U.S., guidance. grew example, moved Uber the delivery in for look That when U.S., XX%. in second half Overall, factor in the the one their the for at obviously since And

of growth executing bottom and of So pulling some in on executing and line competitors delivery back really But of number markets where our is it's of business, that look improvement. the especially delivery European from foreign a team the we we overall do slowdown as our terms see when exchange, in those comes well. some

Operator

Eric Your Sheridan next with question is the from Goldman of line Sachs.

Eric Sheridan

XX us work Maybe on Uber that the sense able to to how broadly Any of nice out Business travel you business On you funnel some Uber two and seeing next for of return topics. as to give can capitalize return around Business, either over a be or you're might there. on you growth wider categories activity the with for how diversification LTV to grocery convenience the velocity talk invested Can months? that shopping about categories some of lot changed diversification of and and into the has of Uber platform the users seen new And around in XX Eats? the changed you've of of some then maybe a alcohol. or you've of of Eats, look second,

Dara Khosrowshahi

of so The But in to sales customers them enterprise lot LTV space. sales to of some them really as space to selling hugely continue on back both as tech goes, growth. are some UXB the to CAC in not. new are Eric, the invest returning and A far significant nontech of And in we're teams. on out of getting very, optimistic we cetera. UXB enterprises, actually, office, terms these to bringing force, et attractive going and ratios we're are they are there, very

champion case essentially environment, the a it a use person, in the getting Zoom clients different of out business this UXB in on So sales invest call an And see more gives is again. seeing in that if the growth their as getting especially on the UXB road. is over we're is kind one but our thing, with comes to we're you Because obviously, salesperson can the in revenue seeing impression, traveler imagine, dear. becoming you teams road and

lot helping the hitting so are and UXB the a definitely, business. of road, that's salespeople And definitely

our UXB. actively product also upselling are Eats We into

customers, of call enterprise et some in deals What lunch example, a about, sit for online if voucher may seeing gambling, session customer free each similar seeing it, buy get to And some is we're capabilities. with for new learn So becomes look this our a We're kinds way particular you like software acquisition. cetera. vouchers product. it you

extent, with the on partnerships side us of and, to advertising it lots as relates UXB as well. some So to

terms $X.X rate gross far new about of as of a team. in It's bookings. run at growth satisfied we're of verticals As in that the quite go, billion terms

frequency. tend also see investing because we're really verticals and of bringing this have seeing overall. new business. power stay millions you what really the we've with of and of we're to higher to the that is the who drive customers the investing new efficiency it's with And the business having. we're bear. And It's been in verticals And in to the hundreds dollars, able despite profitability that part scale a are platform of of delivery that that with this in Eats tend from business can We customers us, to Uber order it's

ride with you your part If with become we order of just life. an you us, you if if with if us, with you everyday eat drink us, groceries us,

basis. that You customers off top And strategy a a That's our is we're we have be the with think to that about, quite what in we membership with optimistic really progress duplicated all industry the relationship program. and can't about on global date.

Operator

next is question Walmsley of line Lloyd from Your the with UBS.

Lloyd Walmsley

can. A couple, if I

much remarks, 'XX you and XXXX focus can to? prepared Or in that's on to delivery can do you help understand feeling guess kind higher verticals kind profitability reduced color it and bookings the is upside interim, Any the business about And you trends scaling of I feel kind on sources 'XX? that the want ahead? of guidance. margins, competitive table some in the still Mobility looking than off you or good then of in on give of that, good the macro that growth us that the increased how to further about incremental First, secondly, help talked big to was the ad tenor understand you as new of the commit how us the something like the in take investment environment?

Nelson Chai

the world. in about operating today. we there really the statement Yes, control about did yes, good feel XXXX. we business we how Yes, can't Lloyd, add is So the macro

are I two, so to so investments. guidance through business and continues we grow year. one. we really delivery don't close the a number well, lot for want not And to you again, well, a making next grow GB continues and have left. business for we're ramp give of And recovery, Number the to the But

ability to our next team And terms confident so grow Mac and really in the feel year. of

good all down operating But the because the again, I and really position business is competitive today of the operating terms platform in say our the well. would and trends really we quite is feel what it's road above. delivery, so how about And the of

improving my really earlier a heard the the our or margins about through fact team, in are I terms transaction, revenue comment that hard, lot worked would because efficiency we've that worked the say working more we've the to try on and all our to improving that per find just lines in different of you and courier we're So cost in get the better the public to that you of about of capital efficiency, now that competitors and some are I make a if yes, a terms away job, and promotion. we of fact benefit of will, doing getting And joke, the company has competitors durable some do are have you gone and the allocation the understand private money.

I if our think business all terms that about so structure margin it profitability And is the the positive of you down in think road. and delivery of the

And so going business, we up -- yes, and and ads well. to ramp that's quite continue our

above. So the it's all of

I talked plan our so our a execute on execute and it And or we we'll if plan, over continue Investor Day, lot will. think you about to

Dara Khosrowshahi

example, top on algorithmically to there's go a route. to a just trips actually with you're in particular but side little quickly price our on when efficient the of, the we how of particular we profitability, bit percentage most the line, do a what do batch, efficient how to do trips covers Lloyd, terms courier trade-off route into on the lot And most there's a delivery per algorithms we going or do in a recalculate of stuff. of transaction, offer price Usually, driving terms how work this for

utilization career All career are a level. while per investments earnings technical down at those levels drive and able high of high to at keeping cost transaction

cetera. engineer algorithmic is the #X of no destination go it thing algorithm. into where getting when time account the pricing back than that's other a which taking been another a trip same has It's for. service being to of on and going destination, effort And literally is is what bunch terms trip is can probability X doing look to trade-off they've do drivers, of that about of magic of side feature into. where There's work plus, kind lot of say, lot of kind working where the the and to a of the of a the experience well. et the and/or and that things of only get on It's That's as kind that line for and a competitors all technical pricing to top talk equal, who upfront that from improve in that you're is center we trade-off us upfront you that town without let's pretty of into growth. going, allows effort what duplicate not at the well, asking the happens, profitability X there So hard properly, they're work the time trip, but kind

Lloyd Walmsley

It seems to be working.

Dara Khosrowshahi

are very to is. I it's kind really And working Yes, the underappreciated. it The and teams covers hard, duplicate. also think very, that is work under of very, difficult

So of work. we love that kind

Operator

Deepak with from is question next Your Research. Wolfe Mathivanan

Deepak Mathivanan

Nelson. kind a comparable the EBITDA where And rate maybe Dara, percent about Can And the the of talk think just rates, bookings penetration then that? wanted the on bit? And Mobility little then rights business? take to about of underlying through you as about a we for that one I also should this little like a higher is take change. kind available? is then know margins run You billion bit $X seems bit you're accounting seems It flow know ask of this. rates about markets a if there's currently was moving pass think excluding margins quarter-to-quarter, calculating correctly, down and into you the that are pass-throughs, and scaling? on Uber the question pieces in accrual how a the Reserve. should lot it It already. but What U.K. et can like from cetera, also it's we at how of out a fuel

Nelson Chai

Sure.

the question answer I'll rate. So first take second first on -- one the the

was the it in yes, down quarter. So

The and of definitely other is give As you points. And the just things XXX we impact, more because it's focus that rate. surcharge you one an you basis less so X focus really guys big thing. was on the probably on surge. take it, know, then annual really an it don't was We to had and

that fact we've invested So you've health marketplace marketplace. our is about talk of in now. The the heard us better our

And there's the it actually rate. impacts take so surge, less when

combination a of both shift you happened think was the really about in And big know I don't so the -- in forward. should don't what take think I going rates of that quarter. terms

just we But happened that's the make again, think historically I quarter. are in where really what sense.

Dara Khosrowshahi

products. as part looking are one segments our goes, of mobility the base, then here It's then bear. advantage premium that build It's largest on and reserve ability of that as super that have of growing margins another higher. strategy take is far And really bring more services excited for reserve segments base. yes, our customer a our products to product. we average on our product. got to we're of the about scale segment And base fastest generally. is And we those customer for We've customer And to

of of in percentage launched. which it terms has our total reservations, In it's single-digit in trips the markets

are minutes a reserving usually, to well. also launch offering it's great for of continuing premium well. Like, many a know And hustling cars, driver as we with wife the in wait experience. when X just I meet Reserve to and combination We down And Reserve a markets. it's can many, but are instead us that dinner problem for as the go and not XX to my it's of car, you

it can get to know and going airport So relates we're first get Drivers if morning drive back, cetera. make to real their device to as Drivers airport, that consumer the they're money. and they'll drive Reserve. they seeing to the et day, more anchor

for it during fastest-growing consumer It's their working their terms right preplan. an it's And and, driving because earnings in it's they as higher growing scale. absolutely drivers margins. anchor again, business delight, now and can of a it's our at day it's them that and product are as well love So

globally. we'll So a great our job, and team's out rolling it keep doing

Operator

line question Lee Your of next comes Mizuho. from with the James

James Lee

on I get wanted update to some maybe regulation.

For the worker example, implemented you what you in ballot since working, you expect so the also issues maybe key in conversation more Massachusetts, longer do to the about when having in the available? regulation peers starting the are is no is can adopting you're equally your with class, reach And talk settlement you a guys industry? U.K., can regulators,

Dara Khosrowshahi

absolutely. Sure,

related outcome through as what drivers with that our accident us The on as this thing the is we'll what reason shot with insurance, that negotiate legislature, that overwhelmingly a many basis, good in et very, as want is include continue drivers to confident dialogue call happy model, most there, important California, to plus dialogue representatives negotiated we in those constantly a status that And polling the with we're we're benefits the get are we're the drivers winning. to happy listen, IC+ benefits and and about confident or outcomes voters kind get well. all are And often next states independent earnings benefits, we absolutely Washington, goes, well. or labor then this don't take ballot the is If we And we Those this Massachusetts the know benefits flexibility that's state-to-state IC+ negotiated open which local our and In it very a on basis. is as In as U.S. whether we chances. a have far along well. are got in if want, But ballot, model, independent across get model, as there. to settlement drivers of health we there. the benefits contractor minimum we at new want. care what cetera. of And clearly U.S. for So showed in some

as In this our terms been to we the having model. are -- charging have of at it that as VAT the U.K., point, I properly are competitors pertains believe we

So the still we're designation stepped It up. as there's far good the in we looks about, more talked thing the in there. do, we on workers, think it's to as business U.K. right drivers think worker worker IC+ makes drivers it But also we need It's a for like do. we to And the more again. designation, model attractive. for Uber U.K. designated that more level And playing because as work we field driving

the that the U.K. that it's are the inevitable it's of healthy. profitable. of U.K. competitors This of play. before lot it is straight to have solidly Supreme So it competitors We do is margins the our makes a will also think and business a And ruling will law matter into a I our sense. remains we that time land. come Court, came a of think say from the same. heck

it's share competitive Our in is the strong been. as as U.K.

at the really And headed about right need operate more are balanced. situation situation and that's to competitive think regulatory in business direction. So We out more about U.K., that the I it's the definitely the well. experience. there, really the sure And the the marketplace U.K. continues making actually rider drivers focus. is It's and the

Operator

from Your Erickson final of question line Capital with Markets. Brad RBC the comes

Bradley Erickson

side. follow-up on Just a mobility the

like environment mentioned labor driver it is what be to to continuing for starting tailwind the a seems down, You the come you. and flipped certainly incentives

of do then I on if having going pricing fall? you're tendencies see you are So there any elasticity-wise? guess, pricing see first, looking And secondarily, riders continuing any effect, those any, that here what pull to on Are other to showing any recent do given levers forward? you incentives

Nelson Chai

Yes.

as in XX in we're know, XX,XXX which we're marketplaces. So you countries, means

macro that's is that in But saw. on about And bringing in the on what a really done basis. supply markets statement and we've really, more again, market-by-market our make second drivers. we great to quarter, earlier highlighted the we So in a Dara hard. do U.S., job, Certainly, operate

driver saw to experience make that continue last the rolled better, probably of and week. to we work some also enhancements the We product out you

And so helps. that all

is incentives, And user, which for planned, so, but improve we because or when pricing just yes, great. the through lower surge we end either does

like certain and we so you at again, up incentives. come to as And I be markets expect some But are marketplace. there that COVID marketplaces you start that tell there would should that

Boston, incentives to will, or are COVID you X going there's then So vice drive San you which some and in get markets markets that if marketplace the should the be as there on recovery, Francisco help to overheated. that supply lagging, assume are of as the versa,

supply. time, But marketplace continue we terms again, really manage job. in does to make too The continues improve our do statement. think, great of so blanket because good the improve job. do hard And team to And We a will pricing to continue over a operating. it's to we that how it's

Dara Khosrowshahi

we as that QX thing in And don't a the margins going guidance that of marketplace a gross And of incentives designed And the the that nature, an it's strong margin other what then we we growth, you forward. And ETA ultimately, to output managing delivering an incremental EBITDA that gave surge Brad, output, our managing and number balance profitability margin to EBITDA it's We're lot bookings experience, really would like metric. the the well. algorithmic margins shareholders I and by you get we're an revenue is is accidental remind metrics. for as revenue shows it's of revenue while happens bunch manage output very, for course. margin margins, because other to, almost of it's and for marketplace very healthy

right to consider revenue we as So and incentives it a continue the trend now, tool margins tool. relates to But positive. be that

We so We're September, in are going have QX demand. increase that of in looking ourselves back a preparing we lot for forward to to school. to demand, are

it's to to and big our them a result that right. a as marketplace we get are this it's quarter of a joining but a us, platform teams that, because to Nelson so and be great on drivers With And to talk going teams. as hard to sure Uber going on lot for the well. work for the I and stuff, of make is thank quarter you the thank in you stay great going from be the call, being about come the for to globally. All a QX continue to platform,

big from joining work talk Uber us. Nelson call, of next to you So I you a of and and ahead we'll thank teams, you the to I appreciate the lots quarter.

Operator

participating. gentlemen, call. concludes today's thank Ladies and you This for

disconnect. now may You

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