Q4 2021 Uber Technologies Inc Earnings Call

Speaker 1: We make today, except as required by law. For more information about factors that may cause actual results to defer materially from power-looking statements, please refer to the press release we issued today. As the last risks and uncertainties described in our most recent quarterly report on form 10Q for the quarter-ended September 30, 2021, and in other filings made with the SEC 20minutes, this will already reveal more now, as far as the ecosystem is concerned,

Today, except as required by law.

For more information about factors that may cause actual results to differ materially from forward looking statements. Please refer to the press release, we issued today as well as risks and uncertainties described in our most recent quarterly report on Form 10-Q for the quarter ended September 32021, and in other filings made with the SEC when available.

Speaker 1: Following prepared remarks today, we will publish the prepared remarks on our Invest Relations website and we will open the call to questions. For the remainder of this discussion, all fourth quarter growth rates reflect your over your growth and are on a constant currency basis unless otherwise noted.

Great.

Following prepared remarks today, we will publish the prepared remarks on our Investor Relations website, and we will open the call to questions.

The remainder of this discussion all fourth quarter growth rates reflect year over year growth in our <unk>.

On a constant currency basis, unless otherwise noted.

Speaker 1: Lastly, we ask you to review our earnings press release for a detailed Q4 financial review and on our Q4 supplemental slide stack for additional disloyal that provide context on recent business performance.

Lastly, we ask you to review our earnings press release for a detailed Q4 financial review and I'll now and our Q4 supplemental slide stack for additional disclosures that provide context on recent business performance.

Speaker 2: With that, let me hand it over to Zara. Thanks, Volody. We had a strong quarter to close at 2021 on a high note. Our results continue to demonstrate both how eager people are to move around their cities as restrictions ease up and how delivery has become an important day of important part of their daily lives.

With that let me hand, it over to Dara. Thanks Marty.

We had a strong quarter to close out 2021 on a high note. Our results continued to demonstrate both how eager people are to move around their cities as restrictions ease up and how delivery has become an important day are important part of their daily lives.

Speaker 2: Gross bookings of $25.9 billion came into the high end of a guns range with a mass of 118 million reaching in all time high.

Gross bookings of $25 $9 billion came in at the high end of our guidance range with <unk> of $118 million, reaching an all time high.

Speaker 2: Continue Strong Execution by your team, delivered 86 million of adjusted EBITDA. Nicely above our guide.

Strong execution by our team delivered $86 million of adjusted EBITDA nicely above our guidance range.

Speaker 2: And due for, we continue to see strong recovery in our mobility business. December , gross bookings nearly recovered to 2019 levels, and approached a $50 billion annual run rate in the first few weeks of the month.

In Q4, we continued to see strong recovery in our mobility business December gross bookings nearly recovered 2019 levels and approach a $50 billion annual run rate in the first few weeks or months.

Speaker 2: Meanwhile, delivery volume states strong as we continue to improve the profitability profile of that business. Delivery reported its first adjusted EVA.profit, including for the first time in the US, even as UberEats became the fastest growing delivery player in America.

Meanwhile, delivery volumes stayed strong as we continued to improve the profitability profile of our business delivery reported its first adjusted EBITDA profit, including for the first time in the U S. Even as Uber eats became the fastest growing delivery player in America.

Speaker 2: Uber freight closed the transformative acquisition with Transplace during the quarter. It's never been clear that our supply chains are in dire need of technical innovation. And along with Transplace, Uber freight now at a billion dollar quarterly run rate is well positioned to bring digital native change to the enormous logistics ecosystem.

<unk> closed the transformative acquisition with transplant during the quarter, it's never been clear that our supply chains are in dire need of technical innovation.

Innovation.

And along with transplants Uber freight now at $1 billion quarterly run rate is well positioned to bring digital native change to the enormous logistics ecosystem.

Speaker 2: Looking back at 2021, we had a great year. I can't say when exactly as I predicted, but our teams have shown an incredible ability to remain agile and manage to change effectiveness.

Looking back at 2021, we had a great year I can't say when exactly as I predicted but our teams have shown an incredible ability to remain agile and manage through change effectively.

Speaker 2: Despite COVID and all of its unpredictability, we now have reported our second adjusted EBITDA profitable quarter, and we expect a generic significant and improvement profitability in 2022.

Despite COVID-19 and all of its unpredictability, we now have reported our second adjusted EBITDA profitable quarter, and we expect to generate significant an improvement profitability in 2022.

Speaker 2: Of course, COVID remains a part of our lives. We started to see some impact of the Omicron wave late in December . The silver lining is that the impacts are becoming more muted as we learn to live with the virus. Lockdowns are less strict and vaccines are available across the world.

Of course Covid.

A part of our lives we started to see some impact of the omicron waived late in December the silver lining is that the impacts are becoming more muted as we learn to live with the virus lockdowns are less strict and vaccines are available across the world.

Speaker 2: Omicron also raw did a tiny year when we usually see seasonal declines. To allow mobility growth booking to decrease 21% from December to January , that's only about 10 points worse than what we typically see at this time of year. On a trip's basis that decline was even more muted, now just 15% month on month, with pricing coming down meaningfully as marketplace balance improved.

<unk> also arrived at a time of year, when we usually see seasonal declines so on mobility gross bookings decreased 21% from December to January that's only about 10 points worse than what we typically see at this time of year on a trip basis decline was even more muted down to 15% month on month with pricing coming.

Down meaningfully as marketplace balance improved.

Speaker 2: It appears that the Omicron impact on our mobility business has come and gone relatively quickly, even faster than the global case count.

It appears that the Amazon impact on our mobility business has come and gone relatively quickly even faster than the global case counts, we're beginning to see several major economies in Europe , relaxing COVID-19 restrictions, including the U K, the Netherlands, Denmark, and Norway with more countries expected to take similar action soon.

Speaker 2: We're beginning to see several major economies in Europe relaxing COVID restrictions, including the UK, the Netherlands, Denmark, and Norway, with more countries expected to take similar action soon.

Speaker 2: In the last two weeks, the mobility recovery has rapidly resumed with both trips and gross bookings recovering and mobility gross bookings last week up 25% Ma-Pam Ma.

In the last two weeks the mobility recovery has rapidly resumed with both trips and gross bookings recovering and mobility gross bookings last week up 25% month on month.

Speaker 2: I'll quickly touch on driver supply, which continues to improve. We've made steady progress through product innovation, more targeted marketing, and on the ground operational refinements to onboard more drivers and careers faster. Nearly 325,000 people started to work on Uber in the quarter bring our total global active earner base to 4.4 million people. The largest it's been since the second quarter of 2020.

I'll quickly touch on driver supply, which continues to improve we made steady progress through product innovation more targeted marketing and on the ground operational refinements to onboard more drivers and couriers faster nearly 325000 people started to work on Uber in the quarter.

Bringing our total global active earner base to $4 4 million people the largest it's been since the second quarter of 2020.

Speaker 2: One important call out is that while the Omicron wave acted as a temporary deterrent to demand, supply has been much more stable. As a result, search and wait time have improved to their lowest level in the year. Recent internal research has shown that Uber has dived far the preferred choice amongst drivers and we're confident that a marketplace will be more, not less balanced going forward.

One important call out is that while the omicron wave active as a temporary deterred deterrent to demand supply has been much more stable as a result.

Search and wait times have improved to their lowest level in the year recent.

Recent internal research has shown that Uber is by far the preferred choice amongst drivers and we're confident that our marketplace will be more not less balance going forward.

Speaker 2: Turning out to delivery, which exceeded our expectations and performed better than we typically see in January , likely in part to Omicron. This relative overperformance has moderated just as the mobility trends have improved. Overall trends continue to be very healthy, and there's no question now that deliveries here today, both in food and other words.

Turning now to delivery, which exceeded our expectations and performed better than we typically see in January likely in part to AUM across this relative over performance has moderated just as the mobility trends have improved overall trends continued to be very healthy and there is no question now that delivers heaters day, both in food and other verticals.

Speaker 2: Delivery reached an important milestone in Q4, generating 25 million in segment adjusted EBITDA and marking the first profitable quarter of many to come. As I said on our last call with you, leave you the turn to EBITDA profitability is a big moment, but ultimately just a step along the way. It's creating a self-sustaining and incredibly valuable business.

Delivery reached an important milestone in Q4 generating $25 million and segment adjusted EBITDA and marking the first profitable quarter of many to come.

As I said on our last call with you we view the turn to EBITDA profitability is a big moment, but ultimately just a step along the way, it's creating a self sustaining and incredibly valuable business.

Speaker 2: With this milestone accomplished, delivery is well positioned to self-fund growth and grocery retail and local commerce. And let me underscore, we expect significant EBITDA profit generation, even after those invests.

With this milestone accomplished delivery is well positioned to self fund growth in grocery retail in local commerce and let me underscore we expect significant EBITDA profit generation, even after those investments.

Speaker 2: Finally, it's worth spending a few minutes on a couple of our growth initiatives across the company. Our advertising business ended the year with around $225 million in run rate revenue well above the 100 million target we laid out earlier this year. While much of the tension has been focused on sponsor listing for Uber Eads, we have a roadmap to build a much broader business, including in mobility. It is very rare to see this budget be very Illinois as close to 100 million people. Anyway, it's worth spending a few hours on e-vacals.

Finally, it's worth spending a few minutes on a couple of our growth initiatives across the company.

Our advertising business ended the year with around $225 million and run rate revenue well above the $100 million target we laid out earlier this year.

While much of the attention has been focused on sponsor listing for Uber eats we have a roadmap to build a much broader business, including in mobility.

Speaker 2: We also close the acquisition of Drizley during the quarter, which will be a nice addition to our advertising F.

We also closed the acquisition of Drizzly during the quarter, which will be a nice addition to our advertising efforts.

Speaker 2: Our new verticals businesses, which includes grocery, alcohol, convenience, and other non-restraux efforts, grew nearly 10% quarter on quarter in Q4 on an organic basis, reaching a best month-ever in December . We continue to make progress in improving non-restraux merchant selection in the US, and as a result, the US grew at three times the rate of our global new verticals business during the quarter.

Our new vertical businesses, which includes grocery alcohol convenience and other non restaurant efforts grew nearly 10% quarter on quarter in Q4 on an organic basis, reaching a best month ever in December we continue to make progress in improving non restaurant merchants selection in the U S and as a result of the U S grew at three two.

Times the rate of our global new verticals business during the quarter.

Speaker 2: Internationally, we continue to have a strong lead in grocery and other verticals. We're working to build on that lead with new, quick commerce offerings, and we're intentionally taking a partner lead approach here with encouraging signs of adoption. For example, in France, Coughful sprint stores have represented nearly 20% of new verticals, orders and powers, and with significantly higher per-store productivity than other new verticals merchants in markets.

Internationally, we continue to have a strong lead in grocery and other verticals. We are working to build on that lead with new quick commerce offerings, and we're intentionally taking a partner led approach here with encouraging signs of adoption for example in France, Costco sprint stores have represented nearly 20% of new verticals.

Orders in Paris.

And with significantly higher per store productivity than other new verticals merchants and market.

Speaker 2: Uber for Business also reached a milestone during the quarter with managed U for B gross booking surpassing its previous high from 2019 with well over a billion in annual run rate.

Hoover for business also reached a milestone during the quarter with manage you for be gross booking surpassing its previous high from 2019 with well over $1 billion in annual run rate GPS.

Speaker 2: Over the next few years, U4B's enterprise offerings, which importantly spans both mobility and delivery, will significantly outpace our consumer business and become a meaningful contributor to growth and profitability.

Over the next few years, you for bees enterprise offerings, which importantly spans both mobility and delivery will significantly outpace our consumer business and become a meaningful contributor to growth and profitability.

Speaker 2: Before I hand it over to Nelson, plug for everyone to tune into our investor day tomorrow morning, which you can live stream on our website. Over the past few quarters, we've talked a lot about the power of the platform and the potential for Uber's complimentary services to contribute to lower cost of acquisition and higher lost on value. We're looking forward to discussing our strategy, our plans for each of our business, and the growing advantage of our platform at a lot more detail tomorrow.

Before I hand, it over to Nelson for everyone to tune into our Investor Day Tomorrow morning, which you can live stream on our web site over the past few quarters, we've talked a lot about the power of the platform and the potential for Uber as complementary services to contribute to lower cost of acquisition and higher lifetime value.

We're looking forward to discussing our strategy our plans for each of our business and the growing advantage of our platform and a lot more detail tomorrow.

Speaker 2: Cooper is emerging from the pandemic stronger than ever. As long as we execute on the opportunities in front of us, we're exceptionally well positioned to deliver strong, profitable growth with significant expansion and profitability and cash flow generation over the coming quarters and years.

Hoover's emerging from the pandemic stronger than ever as long as we execute on the opportunities in front of us, we're exceptionally well positioned to deliver strong profitable growth with significant expansion in profitability and cash flow generation over the coming quarters and years now.

Now over the mountain.

Speaker 3: Thanks, Dar. Two four was a strong quarter in all the mentions with solid gross booking, adjusted EBITDA and margin performance for all of our business.

Thanks to our Q4 was a strong quarter in all dimensions with solid gross bookings adjusted EBITDA and margin performance for all of our businesses.

Speaker 3: Mobility gross bookings grew 67% and the segment generated a healthy adjustity but the margin of 5.1% of gross bookings. Up 80 basis points year over year, even as take rates declined 160 basis points year over year, primarily due to our driver supply and best.

<unk> gross bookings grew 67% in the segment generated a healthy adjusted EBITDA margin of five 1% of gross bookings up 80 basis points year over year, even as take rate declined 160 basis points year over year, primarily due to our driver supply investment.

Speaker 3: Excluding those investments, mobility, incremental margins would have approached 10% on the year over your base.

Excluding those investments mobility incremental margins would have approached 10% on a year over year basis.

Speaker 3: With marketplace balance in much better spot than at any point in 2021, we are confident that mobility's incremental margin will improve meaningfully in 2022.

With marketplace balance a much better spot than at any point in 2021, we are confident that mobility is incremental margin will improve meaningfully in 2022.

Speaker 3: Delivery gross bookings grew 33% and reached its first adjusted ebidot profitable quarter with a $25 million ebidot profit in Q4. As core food delivery profitability expanded to more than cover our investments into grocery and other new initiatives.

Delivered gross bookings grew 33% and reached its first adjusted EBITDA profitable quarter with a $25 million EBITDA profit in Q4.

As core food delivery profitability expanded to more than cover our investments into grocery and other new initiatives.

Speaker 3: Importantly, we recorded our first Adjusted E-B-D-PROPETS for delivery in the U.F. and Canada.

Importantly, we recorded our first adjusted EBITDA profit for delivery in the U S and Canada.

Speaker 3: expanding margins, 180 basis points of gross bookings you over here, while gaining category share in the US.

Spanning margins 180 basis points of gross bookings year over year, while gaining category share in the U S.

Speaker 3: Freight closed the previously announced transaction of transplace during Q4, significantly expanding freight scale and the scope of our offering. By combining freight digital freight brokerage technology, the transplace is managed transportation platform.

Freight closed the previously announced transaction of transplants during Q4 significantly expanding freight scale and the scope of our offerings by combining freight digital freight brokerage technology with translations managed transportation platform.

Speaker 3: Both freight and transplace are ending 2022 with strong momentum with healthy onboarding of new logos. And we are excited to demonstrate the potential of the combined F.

Both freight and transplants are ending 2022 with strong momentum with healthy onboarding of new logos and we're excited to demonstrate the potential of the combined asset.

Speaker 3: Looking ahead to full year 2022, we continue to expect to deliver incremental eva.margin as the percentage of gross bookings, but around 10% for mobility, and over 5% for delivery. In addition, we expect forate to generate positive just to the eva. in 2022.

Looking ahead to full year 2022, we continue to expect to deliver incremental EBITDA margins as a percentage of gross bookings around 10% for mobility and over 5% for delivery in.

In addition, we expect freight to generate positive adjusted EBITDA in 2022.

Speaker 3: While we continue to invest in platform R&D to ensure our products continue to be the best out there, we expect to deliver healthy leverage on that line as well. Taking together those commitments translate to a meaningful profitability expansion for Uber 2022. Turning to our.

While we continue to invest in platform R&D to ensure our products continue to be the best out there, we expect to deliver healthy leverage on that line as well.

Taken together those commitments translate to a meaningful profitability expansion for Uber 2022.

Turning to our balance sheet and liquidity position, we continue to maintain a strong liquidity position ending the quarter with $4 3 billion of cash and cash equivalents and our equity Stakes remark at $12 5 billion REIT.

Speaker 3: We continue to maintain a strong equity position ending in quarter with $4.3 billion of cash and cash equivalent, and our equity stakes remarked at $12.5 billion.

Speaker 3: We benefited from the change in value of Grab and Aurora as these companies reached liquidity milestones as well as gains from selling some of our interest in Yandex.

We benefited from the change in value of grabbing Aurora as these companies reach liquidity milestones as well as gains from selling some of our interest in yandex.

Speaker 3: These benefits were partially offset by the significant movement in DDSock from September 30th to December 31st, as we mark down the value of our DDS by 1.3 billion.

These benefits were partially offset by the significant movement in DD stock from September 30 to December 31, as we mark down the value of our <unk> stake by $1 3 billion.

Speaker 3: The net effect of these moves was a $1.4 billion tailwind to our gap netting.

The net effect of these moves was a $1 4 billion tailwind to our GAAP net income.

Speaker 3: As I have previously noted, our Gatnet income may continue to see swings from point of the corner. From the large equity stakes on our balance.

As I've previously noted our GAAP net income may continue to see swings from quarter to quarter and the large equity stakes on our balance sheet.

Speaker 3: While we intend to monetize some of our financial stakes out of an appropriate time, we have sufficient liquidity given the flexibility to maintain these positions with the aim of maximizing value for Uber and our Cheryl.

We intend to monetize some of our financial Stakes at an appropriate time, we have sufficient liquidity gives us the flexibility to maintain these positions with the aim of maximizing value for Uber and our shareholders.

Speaker 3: I'll conclude my remarks with an update on recent business trend and Q1 outlook.

I'll conclude my remarks, with an update on recent business trends and Q1 outlook.

Speaker 3: It's important to note that typical seasonality during Q1 is for mobility and delivery trips and gross bookings to be flat, core over quarter. Given on the crown related demand impacts, we expect mobility gross bookings to decline core over quarter while delivery is likely to be flat to upmodestly. In aggregate, we estimate these demand impacts to be one to 1.2 billion of drag and Q1 gross bookings.

Important to note that typical seasonality during Q1 is for mobility and delivery trips and gross bookings to be flat quarter over quarter.

Omicron related demand impacts, we expect mobility gross bookings to decline quarter over quarter, while delivery is likely to be flat to up modestly and.

In aggregate, we estimate these demand impacts to be one to $1 2 billion of drag in Q1 gross bookings.

Speaker 3: Additionally, Q1 will represent the first full quarter of Transplace contributions, which is expected at an incremental $600 million in quarter one to freight gross bookings and relative to Q4.

Additionally, Q1 will represent the first full quarter of transplants contributions, which as expected added an incremental $600 million in quarter, one to freight gross bookings.

Relative to Q4.

Speaker 3: Despite the meaningful, gross-looking thing in-pass, we are confident that the growth of our business will allow us to expand profits.

Despite the meaningful gross booking thing impact we are confident that the breadth of our business will allow us to expand profitability.

Speaker 3: With that context for Q1, we expect total company gross booking to be between $25 to $26 billion representing year over year growth of 28% to 33%. And we expect a total company of that profit between $100 million and $130 million for the quarter. With that, let's open it up to questions. Thank you.

With that context for Q1, we expect total company gross bookings to be between $25 $26 billion.

Representing year over year growth of 28% to 33% and we expect a total company adjusted EBITDA profit between $100 million and $130 million for the quarter with that let's open it up for questions. Thank you.

Speaker 4: At this time, I would like to remind everyone in order to ask a question, press the star, followed by the number one on your telephone on bad. If you would like to withdraw your question, again, press the star one. Your first question comes from the line of Doug Amos with JP Morgan. Your line is open.

At this time I would like to remind everyone in order to ask a question press star followed by the number one on your telephone keypad, if he would like to withdraw your question.

Again press Star one your first question comes from the line of Doug Anmuth with Jpmorgan. Your line is open.

Speaker 2: Thanks for taking the questions. I just want to ask you about drivers and careers. I think you talked about 4.4.

Thanks for taking our questions just wanted to ask you about the drivers and couriers and you've talked about $4 four.

Speaker 4: million and I believe that's relative to 5 million pre-COVID. Curious what the factors are, maybe if you were at a similar level in terms of overall bookings, just what kind of efficiencies you might see.

And I believe thats relevant to $5 million pre COVID-19 .

Just curious kind of what the factors are maybe if you were at a similar level in terms of overall bookings just what kind of efficiencies you might see.

Speaker 4: relative to pre-COPE and whether you would need a similar kind of number of drivers and careers at that point. And then also we just talk a little bit about Uber1 and what you're seeing early on here given a very compelling value proposition versus previous subscription offerings. Thanks.

Relative to pre Covid.

Whether you would need a similar kind of number of <unk>.

Of drivers and couriers at that point and then also if you could just talk a little bit about Uber one what you see early on here, given a very compelling value proposition versus previous subscription offerings. Thanks.

Speaker 2: Yeah, absolutely Doug. So as it relates to drivers and couriers, first factor that we're seeing that's really encouraging is that the onboarding rate and onboarding conversion rate

Yes, absolutely Doug so as it relates to drivers and couriers.

First factor that we're seeing that's really encouraging.

That the onboarding rates and Onboarding conversion rates.

Speaker 2: are happening much more successfully. This is because we essentially onboard earners and then we give them work opportunities rather than onboarding them either as a driver or as a courier. And as a result, earners can start earning much faster on our platform. So we're seeing a lot of positive input into the platform. It's also great because earners can earn.

Are happening much more successfully this is because we essentially onboard earners and then we give them work opportunities rather than onboarding them, either as a driver or as a career and as a result earners can start earning much faster on our platform. So we're seeing a lot of positive input into the platform. It is also a <unk>.

Great because earners can earn during a period when everyone's trying to get back on their feet without without as much government help as we have previously so it works out for everyone and it definitely helps out for our marketplace. While we haven't done the specific analysis of like how many earners do we need on a <unk> basis.

Speaker 2: During a period when everyone's trying to get back on their feet, you know, without, without as much government help as we have previously. So it worked out for everyone and it definitely helps out for our marketplace.

Speaker 2: While we haven't done the specific analysis of how many earners do we need on a GB basis.

Speaker 2: It's my strong instinct that our marketplace has gotten more efficient. This is because we are now across dispatching between driving people and driving things. That creates higher utilization for earners and makes for more efficient marketing. It

It's my strong instinct that our marketplace has gotten more efficient. This is because we are now cross dispatching between.

Between driving depot and driving things.

That creates higher utilization for earners and makes for more efficient marketplace. We're also seeing on the delivery side.

Speaker 2: We're also seeing on the delivery side, as the marketplace grows and essentially densifies, we got more restaurants on the marketplace, we have more consumers ordering, and as a result, the average length of a delivery is coming down so that you essentially delivering is becoming more efficient from a network perspective. So network efficiency is up.

As the marketplace grows and essentially densify, we got more restaurants on the marketplace, we have more consumers ordering.

And as a result, the average length of a delivery is coming down so that you essentially delivering is becoming more efficient from a network perspective, So network efficiency is up.

Speaker 2: The efficiency essentially relies—

The efficiency essentially relies.

Speaker 2: that the efficiency results in earners being busy, a higher percentage of the time when they're looking for opportunities. And as you can see, kind of the marketplace metrics are coming down in terms of surge, in terms of ETAs and delivery times are our first rate. So the efficiency trends that we're seeing are quite encouraging.

Yes.

The efficiency results in earners being busy a higher percentage of the time when they are looking for opportunities.

And as you can see kind of the the marketplace metrics are coming down in terms of a surge in terms of ETA'S.

And delivery times are our first rate. So the efficiency is the efficiency trends that we're seeing are quite encouraging.

Speaker 2: As far as Uber One goes, it's very early. In last quarter, we talked about having over 60 million members around the world. And the early signal that we're seeing for Uber One is very encouraging.

As far as Uber one goes it's very early.

And last quarter, we talked about having over 6 million members around the world.

And the early signals that we're seeing for over one is very encouraging.

Speaker 2: Sumer value proposition of quite compelling because pricing is equal to the pricing of our competition But our content is better, right? It's just if contents in terms of freedom delivery and discounts on On rise

It's a consumer value proposition are quite compelling because pricing is equal to the pricing of our competition, but our content is better but it is just if content in terms of delivery.

Delivery and discounts on on rides and the discounts on rides in a world that is increasingly opening thank god is going to become more and more valuable. So we believe we have a content advantage over our competition that is going to show up over time and is going to compound upon itself.

Speaker 2: and the discounts on rise in a world that is increasingly opening, thank God, is going to become more and more valuable. So we believe we have a content advantage over a competition that is going to show up over time and is going to compound upon itself.

Yes.

Thank you Darren please.

Sure.

Speaker 4: Your next question comes from the line of Eric Sheridan with Golden and Sacks. Your line is open.

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

Speaker 5: Thanks so much for taking the question. I know we're gonna talk more longer term tomorrow, but just maybe taking a step back on some of the shorter term dynamics in terms of the mobility business. We talked with one of your competitors last night about the dynamic the product mix and geomix.

Thanks, so much for taking the question I know, we're going to talk more longer term tomorrow, but just maybe taking a step back on some of the shorter term dynamics in terms of the mobility business, we talked with one of your competitors last night about the dynamic of product mix and Geo mix in the U S. Can you give us a little bit of color on what youre seeing.

Speaker 5: in the U.S. Can you give us a little bit of color on what you're seeing globally from GeoMix and opened versus closed environments or product mix like Airport Rides?

Being globally from Geo mix in open versus closed environmental product mix like airport rides.

Speaker 5: versus business rides or elements of that in terms of how that might be driving elements of December or into January and how should we think about that as the quarter of all. Thanks so much.

<unk> business rides are elements of that in terms of how that might be driving elements of December into January and how should we think about that as the quarter evolves. Thanks. So much.

Speaker 2: Yeah, absolutely. I think generally the trends that lift talked about during their call are fairly consistent with our trips. So for example, we saw airport GBs up about 200 percent year on year, about 175 percent in the US.

Yes, absolutely.

I think generally the trends that.

<unk> talked about during their call are fairly consistent with our trip. So for example, we saw airport GBS up about 200% year on year about 175% in the U S.

Speaker 2: In December , rides tend to get longer, holiday rides, et cetera. So we saw similar trends in terms of length of trip, et cetera, which certainly is encouraging. I'd say nothing significant there won't worry the other.

In December rides tend to get longer.

Holiday rise et cetera. So we saw similar trends in terms of length of trip et cetera, which certainly is encouraging I would say nothing significant there one way or the other.

Thank you next question.

Speaker 4: Your next question comes from a line of Justin Post with Bank of America. Your line is open.

Your next.

Question comes from the line of Justin Post with Bank of America. Your line is open.

Speaker 4: Great, thanks. What if you could talk a little bit more about the driver and sentence in the quarter and how you see kind of the take rates of evolving? Is there some big upside there as you look forward to the next couple of years and how that flows through the margins? Thanks a lot.

Great. Thanks wondering if you could talk a little bit more about the driver incentives in the quarter and how you see.

Kind of the take rates evolving is there a big upside there as you look forward. The next couple of years and how that flows through the margins. Thanks a lot.

Speaker 3: So first of all, I think if you remember Justin, when we did the Q3 call, we actually highlighted that was gonna be the fact. And a lot of it just had to do with marketplaces opening and closing because of the pandemic. And so we knew when we talked to you that places like Australia were gonna open, and then we are gonna lean in.

So first of all I think if you remember Justin when we did the Q3 call. We actually highlighted that was going be the fact that a lot of it just has to do with marketplaces opening and closing because of the pandemic and so we knew and we talked to you that places like Australia, or we're going to open and then we are going to lean in.

Speaker 3: I think you heard in my prepared remarks if you actually backed out for some of that we would have seen here from on the margins that we've talked about and there is a little bit of reality but again what I would say is that

I think you heard in my prepared remarks, if you actually backed out for some of that we would have seen the incremental margins that we've talked about and there is a little bit of seasonality.

But again, what I would say is that.

Speaker 3: You know, our goal is to make sure that we continue to overachieve both on the top line, but as well as on the bottom line and the profitability expanding the margins. And so we did that and we knew we did that. And so because of that, you know, we won't we will take opportunities at some point to continue to build supply. We are entering this year as you heard in our comments and probably our best supply situation we've had since the pandemic started in certainly in 2020.

Our goal is to make sure that we continue to overachieve both on the top line.

As well as on the bottom line and the profitability expanding the margins and so we did that and we knew we did that and so because of that we want we will take opportunities at some point to continue to build supply. We are entering this year as you heard in our comments and probably our best supply situation we've had.

Since the pandemic started in certainly in 2020.

Speaker 3: One and so again, we think that'll be beneficial as we go into 2022. You'll hear us talk a little bit more about it But yes, I think that you should we believe that we will see good margin expansion as we think about 2022 And Justin, I also remind you that we manage to ebit

One and so again, we think that will be beneficial as we go into 2022, Youll hear us talk a little bit more about it but yes, I think that you should.

We believe that we will see good margin expansion as we think about 2022 and Justin I'd also remind you that we manage to EBIT.

Speaker 2: dollars and margins and free cashflow dollars and margins.

Dollars and margins and free cash flow dollars and margins as a percentage of GB and revenue margin is an input as part of it there al goes that are constantly balancing between pricing in order to maximize getting the next ride.

Speaker 2: as a percentage of GB and revenue margin is an input as part of it. There are all goes that are constantly balancing between pricing in order to maximize getting the next ride.

Speaker 2: and or pricing driver side pricing that is optimal as well. So the revenue margin that you see, it's more of an output like at the end of the month or at the end of the quarter, we like look at our revenue margins, but we're managing to the business, we're trying to maximize gross bookings, we're trying to maximize trips.

<unk> pricing driver side pricing that is optimal as well so the revenue margin that you see it's more of an output like at the end of the month or at the end of the quarter, we like to look at our revenue margins, but we're managing to the business. We're trying to maximize gross bookings, we're trying to maximize trips and frankly, we're going to we're trying to maximize throughput.

Speaker 2: And frankly, we're trying to maximize throughput. So marketplace delivers maximum earnings.

So our marketplace delivers maximum earn in maximum earnings to the earners on our marketplace because it means it becomes a much more attractive marketplace for earners to participate in one area of upside I would tell you that you have seen in our delivery margins, which is like delivery growth was great we're able to gain share.

Speaker 2: to the earners on our marketplace, because it means it becomes a much more attractive marketplace.

Speaker 2: for owners to participate in. One area of upside, I would tell you that you have seen in our delivery margins, which is like, delivery growth was great. We're able to gain share and margins increase.

Fair and margins increased is because we're optimizing around cost per trip around at the network is densify cost per trip is coming down pretty substantially, especially in the U S. And we think there is more to come and that's just pure goodness because carriers are busy.

Speaker 2: is because we're optimizing on cost per trip around as the network is densifying cost per trip is coming down pretty substantially, especially in the US, and we think there's more to come. And that's just pure goodness because careers are busy, you're getting your food quickly. It's a revenue margin upside and we can reinvest that revenue margin essentially in gaining share. Great, thank you. Thanks for the next question. Thank you.

Youre getting your food.

Quickly, it's a revenue margin upside and we can reinvest that revenue margin essentially in gaining share.

Great. Thank you next question please.

Thank you Jordan.

Speaker 4: Your next question comes from the line of Brian Noak with Morgan Stanley . Your line is open.

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

Hi, Brian .

Speaker 6: And the first one I wanted to ask about the category share gains in the U.S. Food Delivery, any specific sort of adjustments you made or strategic developments that you've done that have really sort of driven that. And how do you think about still existing low-hanging fruit areas to further improve the food delivery market share?

Two just the first one I wanted to ask about.

The category share gains in the U S food delivery any any specific sort of adjustments you've made or strategic development that you've done that it really sort of driven that and how do you think about still existing low hanging fruit areas to further improve the food delivery market share and then secondly.

Speaker 6: And then secondly, Darro, just to hear it here, it could have qualitatively how you think about some of the key drivers of the multi-year consumer ride share side of the business, and you're thinking through one and other pricing mechanisms, et cetera.

I would just be curious to hear kind of qualitatively. How you think about some of the key drivers of the multi year consumer rideshare side of the business are you thinking through one and other pricing mechanisms et cetera.

Speaker 2: Sure, absolutely. As far as the first question in the US goes, I say it's just, it's core execution. None of this is wizardry. Our selection in the US is improving. Our selection in suburbs is getting much better, still not where it needs to be, but it's getting much better. I talked about cost-per-trip coming down, which allows us to reinvest in the top line, whether it's in marketing or it's in incentives.

Sure absolutely as far as the first question on the U S growth.

I think it's just it's core execution.

None of this wizardry our selection in the U S is improving our selection in suburbs is getting much better still not where it needs to be but it is getting much better I talked about cost per trip coming down which allows us to reinvest in the top line, whether it's marketing or its incentives.

Speaker 2: membership as a percentage of our gross bookings is increasing so we're getting more frequency coming to the system and something that will talk more about tomorrow

Membership as a percentage of our gross bookings is increasing so we're getting more frequency coming through the system and something that we'll talk more about tomorrow is that the cross platform activity.

Speaker 2: is that the cross platform activity

Speaker 2: Across both mobility and delivery continues to increase.

Across both mobility and delivery continues to increase that is chiefly at this point benefiting the delivery business.

Speaker 2: That is chiefly at this point benefiting the delivery business. It's a attribute that is completely unique to Uber. And it is becoming more of a factor. So there's like these three.

We attribute that is completely unique to Uber and it is becoming more of a factor. So theres like these three kind of heaters that are coming through the system that arent available to our competitors.

Speaker 2: kind of eaters that are coming through the system that aren't available to our competitors. New eaters as a percentage of our total gross bookings every quarter is actually pretty small because we have a really big base of eaters who are loyal to us who keep coming back. But when you have new eaters quarter after quarter after quarter after quarter it starts compounding.

New <unk> as a percentage of our total gross bookings every quarter is actually pretty small because we have a really big base of heaters were loyal to us who keep coming back, but when you have new eaters quarter after quarter after quarter after quarter. It starts compounding and we believe that we're starting to see the effects of that compounding happened last quarter and certainly this quarter.

Speaker 2: And we believe that we're starting to see the effects of that compounding have the last quarter and certainly this quarter on we...

Speaker 2: Hope that it will continue if it doesn't want to do in our drops. The only point I'd add is um...

And we hope that it will continue if it doesn't we're not doing our jobs and the only point I'd add is.

Speaker 3: We did make a change in terms of our leadership in the U.S. at the beginning of the year.

We did make a change in terms of our leadership in the U S. At the beginning of the year.

Speaker 3: and he and his team deserve kudos because it really was a focus um... and he is he and his team have come in a done a terrific job

And he and his team deserve kudos because it really was a focused.

And he is he and the team implemented a terrific job and so again, we have a lot of confidence going into next year and you're right. It wasn't for me just the fact that we continue to gain competitive positioning versus our competitors.

Speaker 3: And so again, we have a lot of confidence going into next year and you're right. It wasn't for me just the fact that we continue to gain competitive positioning versus our competitors.

Speaker 3: But we did it in a way where we are now going to be possible doing it. And so again, I, you know, a lot of it goes to him and the team because we have a big team of folks here and they really operated well. Your second point is

But we did it in a way where we are now going to be profitable doing it so again.

A lot of it goes to the imminent team because we have a big team of folks here and they really operated well.

Second point is on mobility I.

Speaker 3: I believe. So the only I'd say there's, I think, tomorrow you'll get a very, very good overview of our long-term strategy and then how it impacts our medium to long-term.

I believe and so the other thing I'd say there is I think tomorrow youll get a very very good overview of our long term strategy and then how it impacts our medium to long term of use both in terms of compounding revenue as well as profitability.

Speaker 3: of views both in terms of compounding revenue as well as profitability. Just, you know, as the marketplaces come back, here's one easy step for you. We have a 20 million new riders just in Q4 in our mobility business.

Just as the marketplaces come back Here's one easy stat for you. We added 20 million New riders just in Q4 in our mobility business.

Speaker 3: So if you think about the network respect and our ability to operate across our 10,000 cities in our leadership positions, you can think about that leverage that we have globally that nobody else has. And so as the world's coming back, I think that, you know, we'll spend a lot of time tomorrow, Mack will spend a lot of time talking about how we're going to continue to grow at scale. And a lot of the untapped areas that we're driving.

So if you think about the network effect and our ability to operate across our 10000 cities and our leadership position you can think about that leverage that we have globally that nobody else has and so as the world coming back I think we'll spend a lot of time tomorrow macro spend a lot of time tomorrow talking about how we're going to continue to grow at scale.

And a lot of the untapped areas that we're driving.

Alright, Thanks good question.

Sure.

Speaker 4: Your next question comes from the line of Ross Sandler with Barclays. Your line is open.

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

Speaker 7: So you guys want to talk about the ads, stuff, so you're running the ad plan with the $2.25 annual. Just to warm up, I'll make one habit of having how big that could be. And maybe...

Hey, guys wanted to talk about.

Great.

So you probably won't have a plan.

Yes.

<unk>.

Just your overall outlook on advertising, how big we want to be and maybe.

Speaker 1: How do you become into the form I have jumped on? You're saying it? Here, Ross, you're coming through very muffled. But if you don't mind repeating the question, we'll try and get you a response.

Coming into the whole might have jumped.

Jumpstart.

Hey, Ross.

Ross.

Ross you're coming through very muffled.

But if you if you don't mind repeating the question, we're trying to get to get to a response.

Speaker 7: You might be deciding what plan.

Okay.

At the business and how we might be.

Great.

Thanks.

Speaker 2: Hey, hey, Ross. So the ad business we talked about, hitting $225 million run rate in Q4, well above our targets, the momentum in the business is great. Keep in mind that that is the vast majority of added delivery, and we are building out ad products.

Hey, Ross so the AD business, we talked about.

Hitting our $225 million run rate in Q4, well above our targets the momentum in the business is great.

Keep in mind that that is the vast majority of that is delivery and we are building out ad product.

Speaker 2: that run across mobility and delivery and grocery. Drizzly is going to be a part of our ad operations. For example, Drizzly advertising as a percentage of gross bookings is about 8%.

That run across mobility and delivery and grocery.

Drizzly is going to be a part of our AD operations for example, drizzly advertising as a percentage of gross bookings it's about 8%.

Speaker 2: which is pretty significant. That's not 100 of the numbers that we read you out on because Drisley's been, you know, part of our numbers partial on Q4, but with the mix.

Which is pretty significant that's not in the numbers that we read you out on because <unk> been part of our numbers partial on Q4, but with the mix of higher grocery higher alcohol, you should expect that to be essentially upside in terms of our advertising revenue and the growth ahead.

Speaker 2: of higher grocery, higher alcohol, you should expect that to be essentially upside in terms of our advertising revenue and the growth ahead.

Next question.

Speaker 4: Your next question comes from an line of Lloyd Womzli with UBS. Your line is open.

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

Speaker 8: Thanks to that two of you in the driver's side. Hey guys.

Thanks Laurie.

Speaker 8: So I guess the first one, you know, following up on Justin's question, are you still keeping the water seep don't having to invest in the drug supply?

Hey, guys.

I guess the first one following up on Justin's question.

Are you feeling.

We've done that.

Speaker 8: As more drivers come back into the marketplace and pricing comes down, do you see of any of them kind of turning back off? Like is there more sensitivity?

I guess is more drivers come back into the marketplace and pricing comes down do you see any of them kind of turning back off like is there more sensitivity from drivers to maintaining that higher prices or is it mostly just you stimulate to get them back on and then they stay on and then the second one is <unk>.

Speaker 8: from drivers to maintaining that higher prices or is it mostly just you stimulate to get them back on and then they stay on.

Speaker 8: And then the second one is, you know, sounds like a big effort on

Like a big effort on improving the driver onboarding flow to get them on the road faster I guess beyond that beginning period, where maybe your driver can only drive for for delivery are you seeing a big uptick in.

Speaker 8: improving the driver onboarding flow to get them on the road faster. I guess beyond that beginning period where maybe a driver can only drive for delivery, are you seeing a big uptick in the percent of drivers that drive for both delivery and mobility on an ongoing basis?

The percent of drivers that drive for both delivery and mobility on an ongoing basis.

Speaker 8: that can kind of help drive that efficiency or sustain that efficiency.

That can help drive that efficiency or sustain that efficiency.

Speaker 2: Yeah, absolutely. We walked driver attention trends very closely. And obviously in January with an Omicron wave, we wanted to make sure demand came down. We were watching the number of drivers on the platform, the number of suppliers, etc. And what we've seen are pretty encouraging signs that drivers have stayed on the platform. In general, I would tell you that demand...

Yeah, absolutely, we what driver retention trends very closely.

And obviously in January weather Omicron wave.

We wanted to make sure that demand came down we were watching the number of drivers on the platform the number of suppliers et cetera, and what we've seen are pretty encouraging signs that drivers have stayed on our platform in general I would tell you that demand.

Speaker 2: in the platform, both in terms of mobility and delivery.

In the platform both in terms of mobility and delivery is a fast twitch muscle it moves much faster and supply earner supply on our platform. It's a slow twitch muscle it will respond.

Speaker 2: is a fast twitch muscle. It moves much faster and supply, earner supply on a platform. It's a slow twitch muscle. It'll respond, it'll respond more slowly than, than demand so to speak. Now that we're seeing the Omurkhan bounce back.

It will respond more slowly than than demand so to speak now that we're seeing the omicron bounce back.

Speaker 2: We're pretty confident that our supply situation is looking good right now, and it's going to look good for the balance of the year, but it's always something that we're watching and generally retention rates are quite good.

We're pretty confident that our supply.

Situation.

It is looking good right now and it's going to look good for the balance of the year, but it's always something that we're watching and generally retention rates are quite good. We are actively looking to sign up drivers a higher percent of our drivers too.

Speaker 2: We are actively looking to sign up drivers, a higher-percenture drivers, to work across platform. And whereas our algorithms previously were, I'd say, more highly tuned towards mobility, only or delivery only.

To work across platform and whereas our algorithms previously were I'd say more highly tuned towards mobility only or delivery only our algorithms are now being tuned to that Uber marketplace, and so our cross dispatching and a much more fluid elegant way and that.

Speaker 2: are algorithms are now being tuned to the uber marketplace. And so our cross dispatching in a much more fluid, elegant way.

Speaker 2: And that's only going to improve these are I would say relatively early iteration

Only going to improve these are I would say relatively early iterations.

Speaker 2: and you should expect to see more cross-platform activity both on the consumer side, but also on the earner side. And again, we'll have a lot more to say about that tomorrow at investor day.

And you should you should expect to see more cross platform activity both on the consumer side, but also on the owner side and again, we will have a lot more to say about that tomorrow at Investor day.

Alright, thank you.

Speaker 4: You're welcome, Beth. Your next question comes from the line of Brad Erickson with RBC Capital Markets. Your line is open.

You're welcome next question. Your next question comes from the line of Brad Erickson with RBC capital markets. Your line is open.

Speaker 4: by their Nelson. I think you mentioned that you expect now over 5% of marginal delivery bookings to drop to EBITDA. So it sounds like there's maybe a bit of a discretionary component there. So I guess they're just wondering sort of what the philosophy is to allow that upside or any potential upside to flow through or will it be reinvested and I guess it's so how?

Hi, There Nelson I think you mentioned that you expect now over 5% of marginal delivery bookings to drop to EBITDA. So it sounds like there's maybe a bit of the discretionary component. There. So I guess I was just wondering sort of what's the philosophy is to allow that upside or any potential upside to flow through or will it.

Be reinvested I guess, if so how.

Speaker 3: So again, as Dorván mentioned earlier, so the 5% is incremental margin as we continue to grow the business. We're not optimizing for that number. We're optimizing to grow our roast bookings and to grow our bottom line or adjust to the Vida. And that is really just an output. Obviously, one we watch in that you guys spend a lot of time watching it. And so again, I'm really just trying to get some direction. We'll address a little bit more of the mid to a medium term kind of modeling, if you will, tomorrow. But again, we do expect.

So again as Dara mentioned earlier, so the 5% is incremental margins as we continue to grow the business.

Not optimizing for that number we're optimizing to grow our gross bookings and to grow our bottom line. Our adjusted EBITDA and that is really just an output. Obviously, one we watch I know you guys spent a lot of time watching it and so again I'm really just trying to give some direction will address a little bit more of the mid to a medium term kind of modeling if you will tomorrow.

But again, we do expect that.

Speaker 3: that we will, the incremental margin will be around 5% for our delivery bit.

That we will incur.

The incremental margin will be around 5% for our delivery business and we do think that the 5% represents a balanced viewpoint. It allows us to reinvest where we see growth ahead of us that allows us to be quite competitive again, we have the platform advantage versus our competition, which is just a structural advantage that we have.

Speaker 2: And we do think that the 5% represents a balanced viewpoint. It allows us to reinvest where we see growth ahead of us.

Speaker 2: It allows us to be quite competitive. Again, we have the platform advantage versus our competition, which is just a structural advantage that we have. And then it's also responsible to our shareholders. Because ultimately we want to be a growth business, but we want to be a profitable growth business, and we want to be improving margins going forward.

And then it's also responsible to our shareholders because ultimately we want to be a growth business, but we want to be a profitable growth business and we want to be improving margins going forward.

Next question. Thanks.

Speaker 4: Your next question comes from the line of Deepak Mathavenin with Wolf Research. Your line is open.

Your next question comes from the line of Deepak massive then with Wolfe Research. Your line is open.

Speaker 9: Great. Thanks for taking the questions. Two quick ones. So first, following upon the driver incentives and incremental margins, you noted that you expect incremental margins on the rights business to be like 10% for 22%. How should we generally think about the sensitivity of driver incentives through the year to that? Is that something that you can achieve, even if markets come back in elevated strength globally, and then maybe driver shortages, or more widespread geographically?

Great. Thanks for taking the question two quick ones. So first following upon driver incentives on incremental margins. You noted that you expect incremental margins on the rates business to be like 10% for 'twenty. Two how should we generally think about the sensitivity of driver incentives through the year to that is that some.

That you can achieve even if the markets come back in elevated strength globally, and then maybe driver shortages kind of more widespread geographically.

Speaker 9: And then sort of second question on the each side, it seems like map sees frequency, basket size, we're all stable quarter to quarter. Can you talk about whether there were any geographical discrepancies, maybe in some countries where we've been reopened for a while, compared to other markets? Thank you so much.

And then just had a second question on that.

Each side it seems like Knapp seizure frequency basket size were all stable quarter to quarter can you talk about whether there were any geographical discrepancies maybe in some countries, where we've been reopened four one compared to other markets. Thank you so much.

Speaker 3: So first of all in terms of your question on the driver's part,

So first of all in terms of your question on the drivers apart.

Speaker 3: That is an annual number. And so there may be some quarter to quarter fluctuations, because you're right. If COVID is actually shown as anything, we expect the unexpected. So we are highly confident we'll be able to manage that on an annual basis. There may be a quarter here or there. And in terms of your question about our ability to do it, yes, we optimize our marketplace every single day.

That is an annual number and so there may be some quarter to quarter fluctuations because youre right.

So if COVID-19 has actually shown us anything.

We expect the unexpected and so we're highly confident we'll be able to manage that on an annual basis, there may be a quarter here or there.

And in terms of your question about our ability to do it yes, we optimize our marketplace every single day across our 10000 markets.

Speaker 3: across our 10,000 markets. And as you can tell from our

And as you can tell from our what.

Speaker 3: What we achieved in Q4, we've gotten pretty good at it, particularly as the mobility business has come back post pandemic. And so we feel pretty good about where we sit today. And so again, we're highly confident. If you look at the past a couple of quarters in terms of our ability to generate the 10% incremental margin on the mobility side. And then I'd say on the map side, we pretty much saw strength across the board. I mean, if there were any call out.

But what we achieved in Q4, we've gotten pretty good at it particularly as the mobility business has come back post pandemic and so we feel pretty good about where we sit today and so again, we're highly confident if you look at the past couple of quarters in terms of our ability to generate a 10% incremental margin on the mobility side, and then I'd say on the <unk> side.

We pretty much saw strength across the board I mean, if there were any callouts U S. Mobility map sees on a year on year basis, because of the U S. It closed down on a comparable basis more than other geos with.

Speaker 2: U.S. mobility mapsies on a year on your basis because the U.S. had closed down on a comparable basis more than other G.O.

Speaker 2: was super strong and even on a quarter on quarter basis Audience in Q4 for mobility business grew versus Q3 But it's been actually remarkably consistent

With Super strong and even on a quarter on quarter basis.

<unk> in Q4 for our mobility business grew versus Q2, Q3, but it's been actually remarkably consistent.

Speaker 2: And the growth that you see in both mobility and delivery has been global. There are lots of ups and downs, but the really great thing that we're seeing now is that the diversification within our portfolio of mobility and delivery and the geographic diversification allows us when something's weak, we can lean in to help things out.

And the growth that you see in both mobility and delivery has been global there are lots of ups and downs, but the really great thing that we're seeing now is that the diversification within our portfolio of mobility and delivery and then the geographic diversification allows us when something's week weekend.

Lean into how things out when one geos, particularly strong we can take some of that strength and reinvested in other areas. The diversification of our portfolio is really coming into play and we kind of saw it in January I mean, no one wants to go through another Covid wave.

Speaker 2: When one geospatically strong, we can take some of that strength and reinvest it in other areas. The diversification of our portfolios really coming into play. And we kind of saw it in January . I mean, no one wants to go through another COVID wave or the Omicron wave. The business was pretty darn resilient in January , which is why Q1, you can see our gun. It's stronger than Q4. That speaks to the portfolio approach really coming to the fore. Keep up to the answer all of your questions.

Omicron wave the business was pretty darn resilient in January which is why in Q1, you can see our guidance is stronger than Q4.

That speaks to the portfolio approach really coming to the floor.

Did we answer all of your questions.

Yes.

There was a lot. Thank you so much.

Speaker 8: You're very welcome. Next question. Your next question comes from James Lee with the Mizzou Oak Group. Your line is open.

You're very welcome next question.

Next question comes from James Lee with Mizuho Group. Your line is open.

Speaker 4: Great, thanks for taking my question. I just want to get some regulatory update here. I think in the UK, I think your license is up for renewal this quarter. And then maybe how should we think about financial implications on the reclassification to worker class and also moving to merchant model? And also in the US, any update from the California appeal and the development in key states like New York and Massachusetts. Thank you. Yeah, absolutely.

Great. Thanks for taking my questions I, just wanted to get some regulatory update here I think in the U K I think your license is up for renewal this quarter and maybe how should we think about financial implications on the reclassification to work through clients and also moving to merchant model and also.

And EU less any update.

From the California appeal and the development in key States like New York and Massachusetts. Thank you.

Yeah, absolutely I think on the UK license Werent construction constructive dialogue with Tfl.

Speaker 2: We're in construction, constructed dialogue with TFL.

Speaker 2: I say our relationship with the city of London is better than it's that that has ever been

Our relationship with the city of London is better than that than it's ever been.

Speaker 2: about 10% of our kilometers now in London, or EV, or clean, and we're looking to drive that up, very actively in partnership with the city. So, you know.

About 10% of our kilometers now in London, our EV are clean.

And we're looking to drive that up very actively in partnership with the city.

Speaker 2: That relationship has really changed and we're very hopeful that we get the license renewal, but we never take anything for granted. So we'll see, although, you know, we're pretty confident of our position.

No.

That relationship has really changed and we're very hopeful that we get the license renewal, but we never take anything for granted.

So we will see although we're pretty confident of our position the worker reclassification that we underwent in the UK was the right thing to do.

Speaker 2: You know, the worker reclassification that we underwent in the UK was the right thing to do.

Speaker 2: There isn't a level playing field yet. We believe there should be a level playing.

There isn't a level playing field, yes, we believe there should be a level playing field, we're paying for financially now because our earners in the UK. Our workers are getting lots of benefits that our competition essentially doesn't have to pay but sometimes the right thing to do is expensive.

Speaker 2: We're paying for it financially now because our earners in the UK are workers are getting lots of benefits that are competition.

Speaker 2: essentially doesn't have to pay but you know sometimes the right thing to do is expensive and in this case in the UK it's expensive but we think with time there will be a level playing field There's no question about it the only question is you know when it happens and I think like long term short term

And in this case in the U K, it's expensive, but we think with time, there will be a level playing field.

There's no question about it the only question is when it happens and I think like long term short term being a good citizen and being a good company on the ground, sometimes hurts financially, but long term you get gains we want to be in the U K, we want to be in London for the next 10 15 years.

Speaker 2: being a good citizen, being a good company on the ground sometimes hurts financially. But long term, you get gains. You know, we want to be in the UK. We want to be in London for the next 10, 15, 20 years. And that means doing the right thing. And I think we are on the UK. It'll resolve itself. I can't tell you when.

20 years and that means doing the right thing and I think we are in the UK. It will resolve itself I can't tell you I can't tell you when.

Speaker 2: I think as far as California goes, it's running through the process. We're very confident of our position, but I don't really have anything to share one way or the other.

I think as far as California goes it's running through the process, we're very confident of our position.

But I don't really have anything to share one way or the other.

Thank you for the question.

Speaker 8: Your next question comes from the line of Jason Helstein with Oppenheimer. Your line is open.

Next question.

Your next question comes from the line of Jason <unk> with Oppenheimer. Your line is open.

Speaker 10: Thanks. I'm just going to have one. Just when you think about overpass and specifically restaurants and delivery, are there any deficits in capabilities or coverage in major markets versus your largest competitors and kind of how you think about that? Thanks.

Thanks, I'm just going to ask one just when you think about Uber pass and specifically restaurants and delivery are there any deficits and capabilities or coverage in major markets versus your largest competitors and kind of how you think about that thank you.

Speaker 2: Jason, it's Uber 1 now. We still have to rerand it. As far as coverage goes, our selection in urban markets, I think, is excellent and is on par or better than our competition, although it can always get better.

Yes, Jason.

It's number one now.

We still have to rebrand it.

As far as coverage goes our selection in urban markets I think is excellent.

And is on par or better than our competition, although it can always get better.

Speaker 2: I think it's a selection in suburbs. Our CPN suburbs still trails Dorash. We are seeing our selection improve. We have reorganized our sales scene to be much more local, to be on the ground to understand what that neighborhood restaurant is. And.

The selection in suburbs RCP in suburbs still trails.

Door dash.

We are seeing our selection improve we have reorganized our sales team to be much more local to be on the ground to understand what that neighborhood restaurant is and I'd say.

Speaker 2: You know, there may be a few exceptions, but the vast majority of restaurant partners want to work with more than one partner. And we are, you know, the second player, but by far the biggest second player in the US. And we have a great sales team now. And our systems are much, much better in partnering up with those restaurants. So in the suburbs today, we do have certain gaps, and we're gonna work really, really hard to make up for those gaps, certainly by the end of 2022. Thank you.

There may be a few exceptions, but the vast majority of restaurant partners want to work with more than one partner and we are the second player but by far the biggest second player in the U S.

And we have a great sales team now we and our systems are much much better in partnering up with those restaurants. So in the suburbs today, we do have certain gaps and we're going to work really really hard.

To make up for those gaps certainly by the end of 2022.

Next question.

Speaker 4: Your next question comes from the line of Edward Yeruma with Keybank Capital Markets. Your line is open.

Your next question comes from the line of Edward <unk> with Keybanc capital markets. Your line is open.

Speaker 11: Hey, thanks for taking the question. Seems like a lot of private capital is pushing into ultra fast delivery. I know you're even partnering with full cost private in the space. I guess kind of how do you view the space right now? And what do you do partnership versus what do you do on your own? Thank you.

Hey, Thanks for taking the question it seems like a lot of private capital is pushing into ultrafast delivery I know you are even partnering with.

Private in the space I guess kind of how you view the space right now and what do you do partnership versus what are you doing on your own. Thank you.

Speaker 3: Well, so as you know, we are right now primarily doing partnerships. And so we have a wonderful partnership of CAR4 in France as well. We have a partnership of Gopof here in the US.

Yes.

So as you know we are we are right now primarily doing partnerships and so we have a wonderful partnership with <unk> in France, as well and we have a partnership with <unk> here in the U S.

Speaker 3: We are doing a little bit of testing on our own mainly because we do there's a couple places in Taiwan and Japan who are doing some testing we want to understand the whole value prop and

We're doing a little bit of testing on our own mainly because it because we do theres a couple of places in Taiwan, and Japan, we're doing some testing we want to understand.

The whole value prop in the <unk>.

Speaker 3: the different parts of the value chain. I guess our view is that we definitely want to care about making sure that we have a good product delivered to our consumers.

Parts of the value chain.

Our view is that we definitely want to care about making sure that we have a good product delivered to our consumers.

Speaker 3: There is a lot of private capital at it. I do think over time that there'll be some normalization between the private and the public markets, if you will. And so what I would say is you'll hear tomorrow, we are going after this new vertical space, we're doing it with primarily a partnership approach. And I think we are leveraging both our capabilities and trying to maintain more of an asset-light model, which I think will be beneficial.

There is a lot of private capital at it.

I do think over time that there'll be some normalization between the private and the public markets. If you will.

So what I would say is where youll hear tomorrow, we are going after this new vertical space, we're doing it with primarily a partnership approach and I think we are leveraging both our capabilities and trying to maintain more of an asset light model, which I think will be beneficial.

Speaker 2: I think you only need to add to...

I think the only thing to add too too.

Speaker 2: in the health of commentary is that you know we have an enormous global footprint uh... which is unique amongst a lot of other players out there uh... were in thirty two delivery markets and every single market has different regulatory uh... issues in every single city's different

Now some commentary is that.

We have an enormous global footprint, which is unique amongst a lot of other players out there.

We're in 32 delivery markets in every single market is different regulatory issues and every single city is different and so the partner approach.

Speaker 2: And so the partner approach allows us...

Laos us to essentially penetrate into the many many geographies and the many many cities in which we operate faster in a capital light way.

Speaker 2: to essentially penetrate into the many, many geographies and the many, many cities in which we operate faster.

Speaker 2: in a castle light way. Our goal is with foot commerce. To get foot commerce to as many heaters in the world as possible, as quickly as possible. We think we can move faster because we have partners who are on the ground on the understand cities, the cities in which they operate in. They have a long history. Ultimately, we think the partner letter approach is a better approach.

Our goal is.

Quick commerce to get quick commerce towards many theaters in the world as possible as quickly as possible. We think we can move faster because we have partners who are on the ground. They understand cities the cities in which they operate and they have a long history and ultimately we think the partner led approach is a better approach.

Speaker 2: We'll see if that turns out to be true and I hope that we're pretty confident in the early signal that we're seeing.

<unk>.

We will see if that turns out to be true or not but we're pretty confident in the early signal that we're seeing.

Sure.

Next question operator, we'll take one last question.

Speaker 4: Your final question comes from the line of John Blackwood, twist-cowin, your line is open.

Your final question comes from the line of John Blackledge with Cowen Your line is open.

Speaker 6: Great, thanks. Two questions. First, what were other delivery verticals outside of ETHs as a percent of delivery growth bookings in the fourth quarter? And then second, what's the car next door acquisition? Could you discuss kind of the rationale and do you expect to enter additional markets with that type of offering? Thank you.

Great. Thanks, two questions first what are other delivery verticals outside of each as a percent of delivery gross bookings in the fourth quarter and then second what's the car next door acquisition could you discuss kind of the rationale and do you expect to enter.

Markets with that type of offering thank you.

Speaker 2: Yeah, absolutely. I'll start the second one first. As far as car next door goes, you know, you'll hear more about this in Invested Day tomorrow. But we're essentially, we want Uber rides to be a complete mobility solution. And that means, essentially,

Yeah, absolutely I'll start the second one first as far as car next door goes we.

You'll hear more about this in Investor day Tomorrow, but we're essentially we want Uber.

<unk> to be a complete mobility solution.

And that means essentially being therefore, you on any occasion, where you need a car to ultimately replace.

Speaker 2: being there for you on any occasion where you need a car to ultimately replace, you know.

Speaker 2: first, your second car. But ultimately car ownership. And car next door allows us to have relevancy for those situations where you need a car for over a weekend, et cetera. We have partnerships with Avis, Hertz, et cetera. But you know, part of the magic of Uber is P2P, is managing a supply and demand kind of two-sided marketplace.

Your second car, but ultimately car ownership and car next door allows us to have relevancy for those situations, where you need a car for over a weekend et cetera, we have partnerships with avis hurts et cetera, being a part of the magic of Uber is PDP is managing a supply.

And demand kind of two sided marketplace car.

Speaker 2: Car next door is a two-sided rental marketplace.

Our next door is a two sided rental marketplace grew.

Speaker 2: Great business in Australia. Australia is a spectacular market for us and both mobility and delivery. So it's coming into a market with a lot of strength.

Great business in Australia, Australia is a spectacular market for us in both mobility and delivery. So it's coming into a market with a lot of strength.

Speaker 2: And yes, our ambition is absolutely to go global. And we have an audience here like this is the playbook that we run with new verticals. We're going global with eats. We went global. And I think with peer to peer, car rental.

And yes, our ambition is absolutely to go global and we have audience here like this is the playbook that we run with new verticals were going global with eats we went global.

And I think with peer to peer.

Speaker 2: Yeah, we'll go global, we'll make sure we do it in the right way. Nelson, you want to talk about new verticals as a percentage of GBs? Yeah, so right in the fourth quarter, new verticals approached about a $4 billion run rate.

Car rental yeah, we'll go global we'll make sure we do it in the right way nothing you all talk about new verticals as a percentage of GBS, yes. So late in the fourth quarter, new vehicles approached about a $4 billion run rate.

Speaker 2: And so if you think about it, it's Q4, we were a $54 billion run rate for the total delivery marketplace. So you know, it's a pretty simple math. And I think one of the cool other metrics, other than GBs that we measure, is what percentage or a monthly active platform customers are ordering from new verticals. So in Q4, about 12% of our monthly active.

And so if you think about it in Q4, we were at $54 billion run rate for the total delivery marketplace, it's pretty simple math.

And I think one of the cool other metrics other than GBS that we measure is what percentage of our monthly active platform customers are ordering from new verticals. So in Q4 about 12% of our monthly actives.

Speaker 2: had a new vertical order in kind of our focus markets because we're not yet, you know, deep in every single market out there, that's another metric that we closely track. As that map scene number goes up, growth bookings will all up as well.

Had a new vertical order and kind of our focus markets because we're not yet deep in every single market out there. That's another metric that we closely track as that maps. The number goes up gross bookings will go up as well.

Speaker 2: All right, that's it. Everyone, thank you very much for joining us on the call and just shout out to the Uber team. It's been a long year. I think the team really turned it around in the second half. We delivered a great Q4 and I'm more confident than ever in our prospect for 2022 because of the work that the team has done. So thanks everyone.

Alright.

Thats it everyone. Thank you very much for joining us on the call and just shout out to.

The <unk> team.

Been a long year.

I think the team has really turned it turnaround in the second half we delivered a great Q4, and I'm more confident than ever in our prospects for 2022 because of the work that the team has done so thanks everyone.

Speaker 4: Ladies and gentlemen, thank you for your participation. This concludes today's conference call. You may now disconnect. Good night.

Ladies and gentlemen, thank you for your participation. This concludes today's conference call you may now disconnect.

[music].