Q3 2022 Uber Technologies Inc Earnings Call
Ladies and gentlemen, thank you for standing by.
My name is Brent and I will be your conference operator today at this time I would like to welcome everyone to the.
<unk> third quarter 2022 earnings conference call.
All lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question at that time simply press star followed by the number one on your telephone keypad.
If you would like to withdraw your question again press Star one. Thank you. It is now my pleasure to turn today's conference over to Mr. <unk> Krishnan Marcy Sir Please go ahead.
Thank you operator, thank you for joining us today and welcome to <unk> third quarter 2020 earnings presentation on the call today, we have Dara clusters.
And CFO Nelson.
During today's call, we will present, both GAAP and non-GAAP financial measures additional disclosures regarding these non-GAAP measures, including a reconciliation of GAAP to non-GAAP measures are included in the press release supplemental slides and our filings with the SEC each of which is posted to investor Dot group Dot Com as a reminder.
These numbers are unaudited and may be subject to change.
Statements in this presentation and on this call are forward looking statements such statements can be identified by terms such as believe expect intend and may and you should not place undue reliance on forward looking statements actual results may differ materially from these forward looking statements and we do not undertake any obligation to update any forward looking statement.
Since we make 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 annual report on Form 10-K for the year ended December 31, 2021, and then other filings.
But the SEC when available.
Published our quarterly earnings press release prepared remarks, and supplemental slides to our Investor Relations website earlier today and we ask you to review those documents if you haven't already.
The call to questions following brief opening remarks and.
With that let me hand, it over to Doug. Thanks, Badri were delivered yet another strong quarter with gross bookings up 32% year on year EBITDA of 516 million, an all time high and well above our guidance range and solid free cash flow of $358 million. Despite the uncertain global economic environment in <unk>.
<unk> foreign exchange headwinds, we again issued Q4 EBITDA guidance, but so strong incremental progression and remain confident in our ability to deliver healthy top and bottom line growth with strong free cash flow generation.
Underlying this performance or several trends that represent tailwind for us cities reopening travel is booming and more broadly a continued shift of consumer spending from retail back to services.
Seen these trends continue into the fourth quarter with October tracking to be our best month ever for mobility and total company gross bookings.
With over $1 billion in adjusted EBITDA of $693 million in free cash flow. So far this year, we've demonstrated how our global scale and unique advantages of our platform are combining to generate meaningful profits and we're confident in our ability to build on this momentum.
With that let's open the call questions.
Okay.
Operator 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.
Your first question comes from the line of Brian Nowak with Morgan Stanley . Your line is open.
Thanks for taking my questions I have two.
The first one John you mentioned in the fourth quarter bookings trends the guidance seems really solid and particularly given the backdrop just kind of curious are you seeing any changes in consumer behavior or trade down or differences in all your income cohorts, how they're acting across rides and eats U S. Europe .
Any sign at all of weakening within the consumer of your of your map CS. That's the first one and then the second one maybe a bigger picture one I think if we break apart the rides business a little bit between high frequency users and lower frequency users and theres still a lot of map Sis, who are pretty infrequent users you know a few times a month.
Could you just talk to us about sort of philosophically in the next few years, the key strategies to get those lower frequency users using the platform three or four or five more times per month.
Absolutely so Brian as you can imagine with everything going on we have been looking.
Very closely for any signs both internally and so that we can communicate to our investors.
And right now frankly, we're not seeing any signs of consumer weakness and part of it is that the consumer spending is strong and not only as consumer spending strong, but its shifting over from retail to services.
We are the beneficiary of that so our mobility, we've looked at our mobility consumers from an income basis to see if there is any.
Delta and behavior, we're not seeing any kind of.
One way or the other seasonal trends remain the same.
Even lower income riders continue to have higher trips per rider.
Things are opening up showing absolutely no signs of slowing down and we've also specifically looked at Europe .
With inflation.
With the European economies, I think leading in terms of weakness as far as the Western World again, we've looked to see if there's any weakness and we're not observe any any weakness really the biggest factor that's affecting our financials is foreign exchange and the strength of the dollar.
That makes our stated gross bookings lower than obviously hurts our profit margins, but that's something that we've been able to overcome.
When we look at delivery as well the delivery business as you saw accelerated a bit against Q2.
The frequency of ordering per per monthly active platform consumer remains consistent.
And it remains consistent not only in the U S and abroad as well.
So while we have looked for signal, we're not seeing any signal, we're going to be cautious going forward, we're going to be cautious on costs, we're going to be cautious on overhead.
But as far as the business goes right now we are seeing strength across the board.
As far as the consumers go high frequency low frequency consumers.
It's absolutely true that if we can move our consumer use from lower frequency to higher frequency.
We will see very significant growth generally if you look at our the number of trips per monthly active platform consumer that has increased to an average of $5 three from let's say five point earlier in the year. So we are seeing higher engagement of consumers on the platform.
I'd say there are three factors there one is our membership program Uber one.
<unk> is now well over 10 million members.
We are now launched in additional markets I think we're in eight markets now on a global basis and continue to launch and Uber one has had.
It has benefits that are unique in that they have both delivery benefits and mobility benefits as well. So over one is definitely a product that is driving frequency second for us is cross sell.
We are actively cross selling delivery consumers food delivery consumers into grocery grocery consumers into alcohol and then actually back now to mobility as well. So all of the cross sell that we have across the platform continues to increase.
Drive new customers and also drive retention as well and then for US also the some of the growth initiatives that we have are designed to drive frequency. This is available and taxi two wheelers, three wheelers and lower cost product as well when you put it altogether.
Drive healthy gross bookings growth and generally higher frequency per audience. So we like the tools that we've got.
There is a ton of upside for us on the frequency side.
Great question. Thanks, Sarah.
Sure.
Your next question comes from the line of Eric Sheridan with Goldman Sachs. Your line is open.
Thanks for taking the questions maybe two if I can.
First.
We saw a proposal from the Labor Department in the last couple of weeks and it caused a lot of volatility in the news flow around the sector can you give us your latest updated views on not only how that proposal might evolve, but your current state of the world in terms of the regulatory landscape with respect to the gig economy, and how that might evolve in terms of.
Sure of elements in your business over the next couple of years. That's number one and then number two maybe asking Brian's question, but pivoting towards the delivery side of the house I think there continues to be a lot of concern about how delivery will grow with the consumer weakens are you seeing anything on the consumer front.
Did you want to flag in terms of the delivery cadence or does the delivery frequency and how should we be thinking about some of the widening out of use cases and delivery is maybe muting some of that impact in the next step 12 to 18 months. Thanks.
Absolutely.
As it relates to the department of Labor rule, making.
First thing I would tell you is it effectively returns us to the framework during Obama's presidency.
Which was a framework.
Which we.
Grew significantly.
And it doesn't reclassifying the workers doesn't include NAV.
C test.
So when we look at the rulemaking.
We believe that it will provide for stability going forward and really the focus that we have.
Ourselves is working on a state by state level right <unk> 22 in California passed with 58% of the votes.
In a very very liberal states.
I think everybody recognizes.
The value of the flexibility of independent contractors earnings levels are very robust and I think the dialogue that we're having on a state level really our goal and we are finding.
We are finding that.
The dialogue is a robust dialogue on a state level about preserving flexibility having robust earners and then also providing some protections appropriate for independent contractors is the right way forward. We continue to have dialogue and I would say the trend is in our favor at this point, but it is the ROE is going to be.
And for US the nature of work is always going to be a big issue that we have a responsibility to to shape going forward in dialogue, obviously with local governments when we look at delivery.
Again, we don't see any signs one way or the other of consumer weakness at this point, it's something that we're watching out for us.
Basket sizes are up frequency is stable about 10% of our eaters on a monthly basis now.
Our using our grocery product as well so we are driving higher engagement, there and Uber one membership continues to penetrate at higher rates.
Within our within our delivery segment, so you've seen the growth rate of delivery. It continues to be stable or et cetera, a little bit this quarter and I think for Q4, we expect it to be stable to up a little bit as well.
At this point, we're not seeing weakness, we're definitely watching out for.
Next question please.
Your next question is from the line of Justin Post with Bank of America. Your line is open.
Great. Thanks, I guess, you've done good job breaking down the mobility drivers.
In three categories can you help us think about delivery growth from here to get to your plan in 'twenty four.
That would be the first thing and then we did see corporate overhead go up a bit quarter over quarter. I think could you just go through some of the drivers there and if you can kind of keep that.
Costs contained over the next couple of years. Thank you.
Yes, So I think if you look at delivery growth.
Our growth accelerated a little bit better.
Last quarter North America volumes remained very healthy so North America gross bookings grew 19%.
And then in Europe actually we saw a slight acceleration in terms of gross bookings on a constant currency basis as well.
And so I think on delivery, it's all steady on on the front.
The growth rate is driven based on adding in new meters and obviously, we have a source of significant source of new heaters coming in front of the mobility side.
Our mobility business provides.
As many new leaders to our each service.
Google Facebook tick tock combined at about a quarter of cost.
And it's also about merchant ads.
So we are now at an all time high in terms of the number of merchants on the platform.
And the number of merchants are it's about 870000 merchants on the platform up about 11% year on year. So again that number of merchants that growth of merchants mirrors, our gross bookings growth as well gross bookings growth being a little bit higher so with ease us about demand and supply and we're adding new leaders.
Adding new merchants, which is really driving the growth of the business along with the frequency that we see with Uber one.
So you want to talk about overhead so on the corporate overhead yes, yes, it did increase a little bit in the quarter.
We obviously continue to monitor quite closely and so on a year on year basis, we actually did deliver about 20 basis points deleverage as a percentage of gross bookings on internally. What we're doing is we're really are trying to focus on managing our cost. If you all because we do recognize that the environment is a little bit more uncertain. Despite the.
Fact that our businesses are operating quite well. So you should expect us to continue to be disciplined and we're going to continue to deliver the operating leverage as you know for us the North Star right now is making sure that we.
I will deliver the 7% incremental margins, but we've talked about on a total company level and as you know we're ahead of that and expect to be way ahead of that as we think about full year 2022.
Great. Thanks, Tom Thanks, Nelson. Thank you Sir next question your next.
Next question is from the line of Doug Anmuth with Jpmorgan. Your line is open.
Thanks for taking the questions I just have two on the mobility side.
Hoping to get just the early read on upfront fares and destination functionality for drivers and then second if you could just talk about the higher mobility take rate to 27, 9%, which was up about 130 bps sequentially. The key drivers there. Thanks.
I'll take the first and nothing will take the second looking.
Looking at upfront there are upfront there some destinations are a big positive.
As it relates to driver satisfaction.
Drivers now on a global basis.
We're at 22019 highs if.
If you look at the U S. The number of drivers that we have is now about 80% recovered.
2019, but the number of drivers that we have is up 37% and what we're seeing is that draw.
Driver of churn is down almost 20% versus where it was historically so drivers are much more engaged on the platform, we've talked about driver earnings being $36.
Our on average in the U S as well.
And the driver engagement in other words, how many hours are our drivers driving on average is up 16% on a year on year basis.
So the robust earnings the continued flexibility and additional information that you get in terms of upfront destinations that is combining for very very healthy supply trends, we can still add more drivers into the marketplace and we're busy doing so.
But the trends that we see are very healthy and the competitive trends.
That we see in terms of driver engagement on our platform and driver preference for our platform.
Remained very very high so.
<unk> has really worked to improve the driver experience from onboarding to to the upfront destinations.
Two our customer service to a bunch of safety innovations that we're driving as well. So there's a lot of innovation going on on the driver front and definitely showing in terms of their preference for our platform.
First of all regarding the take rate on mobility.
We've talked about in the last quarter it gets a little bit more challenging because of a business model change in the U K that occurred in March.
<unk> recorded an ability to take rate was 27, 9%. If you adjusted out the impact of the UK merchant model change the underlying take rate would have been about 22% on the underlying basis to take rate did increase about 100 basis points quarter on quarter.
Again, the underlying hey, great would've been closer to 22% because.
The fuel charge impact was relatively constant quarter over quarter.
We've been trying to guide you we exited <unk> take rate is just one of the levers of the P&L. We really are focused on demonstrating both growth of the top line, but more importantly, and continuing improving margins with regarding the segment.
<unk> margin for mobility in Q3 was six 6% and continuing to improve and so I'm really focused across a number of different dimensions and again, we feel like we have a lot of levers to make sure we deliver against our top and bottom line targets.
Excellent. Thank you guys.
Your next question is from the line of Ross Sandler with Barclays. Your line is open.
Hey, Nelson I, just wanted to follow up on that last comment about the rides EBITDA flow through so the 6.6%.
At Analyst Day, you guys showed that some of the top 20 markets.
That are are performing above the long term target already.
Back in February .
And you've seen this EBITDA margin.
Go up several hundred basis points. This year. So could you just talk about like what's pulling up the overall is that those top markets that are in the top 20 are going up even further than 13% or is it the ones that are kind of below the average closer to breakeven moving towards that long term goal.
Like any any color on on what's driving the EBITDA margin improvement in rides and do you guys think it is still <unk>.
11% in the long term or could it be potentially higher thanks a lot.
So we're talking about 10% and that's the number we've kind of talked as a guide.
I would say it's across the board so what we're seeing as.
We are getting leverage because they were managing our cost base, we've talked a lot about some of the investment we made last year in terms of bringing supply on so we're able to be more efficient in terms of adding that supply and so it's really across the board those hot markets that icon.
Highlighted continued to do extremely well and next year, we have a number of countries that are above that 10% number.
And the ones that are below we are continuing to improve and so we've just seen an overall improvement in our marketplace. Our business is actually going quite strongly across all of our key geographies right now and again, it's a lot of the confidence we have as you think about our ability to.
Put out our quarterly targets and then overachieve against a particularly on the bottom line as you've seen this year and again if anything.
As we think about our 2004 targets.
We're three quarters into laying out those numbers in February we've largely hit them on the top line, we've over exceeded them on the bottom line. The business is operating quite well and so we probably are more confident in terms of hitting that bottom line number to think about three years now, but it's not just because it's.
Looks below the 10% or above the 10%, it's actually the overall marketplace and how the business is operating right now.
And Ross I would just add that we're able to drive this kind of incremental margins healthy incremental margin.
While we continue to invest in some of the newer products and mobility portfolio.
We as we invest in taxi as we invest in reserve.
As we invest in you for B high capacity vehicles shared rides et cetera. So we are actively reinvesting in growth levers, but the base business is inflicting.
And it's showing very very strong.
Leverage that allows us to invest in new products, while we're delivering higher profitability as Nelson said.
Alright next question. Please your next question is from the line of Lloyd Walmsley with UBS. Your line is open.
Thanks.
If I can first just given all the questions around macro are there enough levers in the business on the cost side and kind of rationalizing competition, such that Youre confident in 2024, EBITDA targets kind of regardless of macro.
Then second one somewhat related lift.
Lyft recently retired their energy surcharge and added new charged to pass along higher insurance costs.
Do you think a similar course of action might make sense.
And what could that mean for the P&L. Thanks, Okay. So first of all in terms of leverage yes. So we've been telling you. This and if you. If you think about the levers that we're able to pull.
As Dara said, we're able to continue to improve and deliver or over deliver against the 7% incremental margins of the company level.
While we are investing in some growth.
And so.
In fact, frankly were probably more constant in terms of delivering the 2004 EBITDA number as we sit here today in November .
Even February because again, we are three quarters without are behind us.
And including.
The part of the macro environment is also the competitive environment and so we are operating quite well right. Now. So yes. We think we're going to we are very confident in terms of delivering the 2004 EBITDA number in terms of the lift surcharge.
I would tell you is we obviously know what theyre doing.
Pay close attention, we are not making any changes at this time, it's not that we wouldn't at some point that obviously would have a beneficial effect, but again, we are trying to balance our marketplace.
Sure.
We continue to.
Drive an efficient marketplace and as you can tell by our results we are.
Delivering very very strong bottom line as well as top line and again, we will continue to evaluate that but again, we're not going to make a change based on something that they are doing.
You said that right now the focus.
Of the business is really to improve our supply situation.
And thats kind of where we're waiting some of our investments.
Earnings from our earners on a global basis.
Were $10 $8 billion up 25% all time high on a global basis.
Our job is to run a lean operation, where we can deliver as much earnings as possible to our drivers and couriers on a global basis and also obviously be responsible to our investors. So right now exactly as Nelson said, we like where we are and we're going to focus on our own strategy versus competitive.
Some of our competitor strategy.
Okay. Thank you.
Next question. Your next question is from Deepak <unk> with Wolfe Research. Your line is open.
Great. Thanks for taking the questions.
Couple of ones first can you unpack the <unk> incremental margins in <unk>, it's continuing to be very strong even if you kind of calm through the investment period last year can you elaborate on the factors driving cost per trip down is it more sort of like a batching obtaining with scale thats happening on the platform are there or are there any other underlying factors.
And then <unk>.
Second question Dara, maybe can you talk about some of the kind of counter cyclical element and a potentially helping drive our supply with macro becoming weaker across the world in seven countries.
Starting to see it sounded like the driver supply and hours being helped by a weakening macro in certain regions.
Okay. So first of all I'll take the first part so as you know we made a very conscious pivot towards expanding delivery profitability faster than we previously planned and if you look at.
What we've delivered this year as well as what the guidance is in the Q4.
That will play through.
We benefited both from the work that our tech team has done in terms of improving our currencies, our courier efficiency and so that is probably the single biggest driver in terms of operating in terms of driving our incremental delivery margins and then secondarily, we still have a fair amount on the incentive line.
The environment has gotten.
More <unk>.
Struck live if you will as lot of our competitors are also trying to follow our lead and trying to drive profitability.
And then the ones that are not public as you know the funding market have changed so we really are competing much more on platform and so youre seeing the benefits of that as you think about both our growth, but importantly, our EBITDA margin progression and so you should expect us to continue to drive that because as <unk> said internally we are committed.
Managing our cost base, and really making sure we get leverage off of our scale platform.
And then Deepak in terms of driver supply that is getting healthier across the board on a global basis. I think there are couple of factors. One is we've leaned into driver supply so driver incentives.
While they are easing continue to be at high levels. We are investing billions of dollars in driver incentives to bring drivers onboard second is we have invested significantly in our onboarding flows.
Auto fetching documents as opposed to the year having too.
You don't take pictures of your documents improving.
That.
The conversion of driver sign ups to actually drivers getting on boarded and making that first trip as well.
There is a ton of tech work that has gone into those Onboarding flows and then I do think the macro the macro environment does seem to be helping combined with.
Solid earnings that we're seeing right average driver in the U S, making $36 per engaged our those are very very healthy earnings levels.
The U S at least over 70% of our drivers who are coming onboard now said that inflation did play a role in their decision to sign up right. It helps them afford their groceries be more comfortable.
In an environment, where real wages.
Are fairly weak as it relates to the inflationary environment. So we do think the macro environment is helping although I do think that the investments that we've made both in technology and behind driver incentives are also a pretty important factor as well.
Next question please.
Your next question is from the line of Mark Mahaney with Evercore ISI. Your line is open.
Thanks, I wanted to ask two product productivity questions.
<unk>, what do you what else can you do to make the Uber one value proposition more compelling such that you go from $10 million.
Customers members to 20 or over $30 million like what are the big unlocks ahead on Uber, One and then secondly, you talked about drivers supply.
Now back on par with mobile active.
Active drivers just back on par with September 19 levels and that <unk> seen improvement in things like surge in Eth, our search and ETS are those metrics back to where they were back then and if not what's still needs to be done to kind of continue to improve.
The performance the productivity of mobility to get it back to where it was and to get it improved from today. Thanks.
Sure absolutely so mark the one thing that our stresses we think Uber one is already there like we're always trying to improve the product as well, but remember. This is this is a very young product.
We're still launching market. So we're now in eight markets.
It is the only product out there we price competitively with other players who are.
Who are offering delivery only benefits.
And we are offering delivery benefits that are just as strong as our competition and discounts ranging from 5% to 10% on the mobility side.
Is a far superior proposition, especially as markets are opening up.
As well so we're confident with the product as we have.
To be able to go from 10 million to $20 million.
To the $30 million that you put out there the product is already there now we are going to invest in experiential benefits you.
Get.
Priority pickup in airports.
Do you get priority matching for example, during an event those are definitely benefits that we are going to experiment with.
But <unk> is the best membership product out there on a global basis.
And obviously with the audience that we have we have the mobility audience and a delivery audience and a grocery audience that we can put that we can.
<unk> in terms of the marketing audience.
We think that $20 million $30 million are a matter of time.
In terms of search and EPA is they are coming down generally out a surge levels now are running at.
High 20% to 30% range.
We're more comfortable with a range call it in the teens.
Ta is on average are running call it six minutes.
And we are more comfortable in the five minute range, what it takes to get to those levels is simply continued investment and support and we are seeing our <unk>.
Supply improve and generally supply hours.
Our growing at very healthy rates, which is a function of new drivers onboarding, but the average driver who is onboard it.
Being engaged.
At a higher level than they were last year. So as we improve the supply demand balance of the marketplaces and we're well on our way we think we will get the surge levels.
Below 20% and EPA is closer to five minutes.
Directionally, we're confident in where we go.
Okay. Thank you Dara and.
Welcome next question. Please your next question is from the line of Ron Josey with Citi. Your line is open.
Great. Thanks for taking the question, maybe Don I wanted to follow up on a question really on upfront fares and destinations and I think in the past recently you talked about to the variables that go into pricing more so than just time and distance. So can you talk just a little more about just the variables on the algorithm besides time and distance run up from chairs and then we haven't talked much about advertising here.
$350 million run rate target 1 billion by 'twenty four.
A bunch of launches this quarter talk to us about what's needed from a tools and maybe verticals or a sales force perspective to get to that $1 billion. Thank you.
Yes, sure Ron so.
Tommy distance there are definitely variables one one variable is.
The supply of drivers in that location right. If there are a lot of drivers in that location that you can price.
The triple a lower or if the supply of drivers as low in that location that youre going to have the price up as well.
He will also predict.
The chances of there being another ride at the destination as well so is the driver going to have.
A large amount of deadhead miles call it in which case, we will price up.
If it's highly likely that the driver will have another rise so that utilization is high.
Then we were priced that ride lower and then also some of the basics right.
How far does a driver needs to drive for the pickup if it's half a mile than price might be lower if it's call it five or six mile.
Then the price will be higher as well.
And then also our ability to show the upfront fare.
And our looking at what the access rate is for those upfront there gives us a signal into a pricing algorithm that wasn't possible with time and distance previously when we were talking the business. It is what it is drivers will accept or they won't actually in decades, they will cancel.
The destination now we see light signal is our pricing working or not based on driver acceptance rates and that goes into the algorithms that determine pricing as well all of this.
Combining.
To a higher throughput marketplace.
With higher satisfaction on the driver on the driver side as well.
So we're pretty happy about the signal.
And it's clearly something that drop as well in.
In terms of advertising, we're very confident.
The targets that we put in terms of getting to $1 billion.
Where based on what we think are conservative assumptions.
We see competitors out in the marketplace.
With advertising dollars as a percentage of gross bookings of 2%.
$1 billion 2020 by 2024 and implies a number that are short of that 2% number. So we think even if we get to a $1 billion. We think we will have growth in advertising beyond that we are now excited to open up new services new surfaces on the advertising front, our journey that we have.
Launched that.
Opens up the mobility surface, we are getting very very.
Excellent engagement as far as mobility consumers with those at and we're tracking some pretty premium advertisers onto that surface as well.
The unique surface that attracted very high demo as well.
So we are well on our way to that $1 billion and I think again to $1 billion is not the high point of that business of $1 billion is just one step along the way to building a multibillion dollar business for us.
Thank you Donna.
Welcome next question. Your next question is from the line of John Blackledge with Cowen Your line is open.
Alright, great. Thank you two questions are first just start.
Can you discuss <unk> market share position in both mobility and delivery and then on mobility could you talk about the volumes compared to the highest pre pandemic. Thank you.
Sure.
In terms of our category position in mobility and delivery.
We operate all around the world.
If I were to generalize on mobility, our category position is very strong we are close to if not at all time highs.
And U S Australia, the U K, particularly is very very strong with us.
Strong for us as far as category position goes and then on the delivery side, we have improved our category position quarter on quarter.
Either been stable or improving our category position across 75%.
Our gross bookings space and in the last month, we believe Thats only improved.
So we are in a position now because of the scale of the business because of the global nature of the business and the power of the platform where mobility is pushing.
As sending consumers that delivery and vice versa, we're able to gain category position and <unk>.
Improved margins pretty significantly which is great.
Second question. So in terms of our cargo so we're more than a 100% recovered versus pre pandemic levels globally on mobility, and we're about 94% recovered on a trip basis globally. So again the business has come back nicely and again, we see pretty good runway ahead of us.
Thank you we'll take one last question please.
Your final question comes from the line of Jason <unk> with Oppenheimer.
Your line is open.
Thank you.
So our work suggests.
That delivery only users.
In Europe , and U K as a proxy, but our multiples higher than mobility only users.
I guess can you elaborate what do you think you need to do to convert the delivery only users to mobility users or do you think there are structural differences in transportation.
In Europe versus the U S banks.
Yes, so I think.
In terms of those users.
It's really the platform. So we are now offering mobility promos for example to deliver users who.
Either.
<unk> churn.
<unk> mobile users, who have never used mobility before and we're seeing really great promise in terms of delivery actually being able to.
Cross promote and drive mobility use cases as well.
And then Uber one is the other product that we have obviously the lead benefit for Uber, one as free delivery and discounts on your delivery as well, but the mobility benefits are benefits that we can promote in Europe and other markets.
When you look at the UK for example, a much higher percentage of our mobility business is let's say in London, while the delivery business not just in London, but is in a number of other cities the Manchester Liverpool Newcastle's et cetera.
Of the world as well so we see the power of cross promotion, we started with mobility really promoting delivery, but we think delivery promoting mobility back is absolutely a potential that we have that we're very early in terms of development.
Thanks, Alright.
Well. Thank you everyone for joining we are very very happy to deliver another healthy quarter.
Strong top line growth and strong bottom line bottom line growth as well Nelson.
Nelson balls, and I get to talk about it but there are thousands of <unk> employees, who are doing the hard work on the ground.
So a special thank you to them.
And then of course, our earners with them, we wouldn't be here talking to you.
Look forward to talking to you next quarter.
Ladies and gentlemen. This concludes today's conference call you may now disconnect.
Yes.
[music].
Yes.
Yeah.