Q1 2023 Lyft Inc Earnings Call
Good afternoon, everyone and thank you for joining us.
The team is going to address a few big developments on today's call I'm.
Im going to kick things off by talking about our leadership transition.
I am excited to pass the baton to David Russia.
Now Lyft second ever CEO .
That change was effective on April 17.
John will also be transitioning from his role as president early this summer.
David is an incredible proven leader and he is going to be great for lyft.
His experience on our board gave him a strong appreciation for the incredible opportunities ahead of us.
And a clear view of the challenges he.
He brings the right energy ambition and experience to lead lift through the next chapter.
David's customer obsession purpose, driven mindset and competitive spirit are exactly what lift needs.
With the transition this will be the last earnings call that John and I joined.
I am now the tariff lift sport.
John will continue to serve as president of lift until the end of June at which time. He will continue to serve as lifts Vice chair.
We are excited for David to be leaving the company on the day to day basis, and look forward to continuing to serve as board members.
And to supporting the company on the next leg of its journey.
Finally, I want to say, thank you to the Lyft investor community.
John and I are incredibly grateful to have had the opportunity to build this company with their support.
<unk> is our life's work and we're confident it's in great hands.
Now I'm going to turn the call over to David.
Thanks Logan.
I'm still grateful to you and John for pioneering a new industry Istar.
Establishing a defining company and building an iconic brand.
Lyft has had a profound impact on the lives of millions of riders and drivers of earn billions of dollars after the extraordinary legacy.
Everyone, who has joined US on today's call. If you haven't we haven't yet met you should know that I have an extremely a results driven.
Leader and I'm a builder at heart.
At Microsoft I learned the power of scale and competitive focus at.
At Amazon I hope the company be insanely customer focus.
In a world leader I learned how to do more with less.
That's what I bring to lift.
So here's my perspective.
Lyft addresses two basic and very durable needs, we get riders out and about so they can live their lives together, we are a social species.
And we provide drivers away to work that gives them control over their money and time is one driver told me driver with Lyft means I will never go broke.
These needs aren't going to go away and they are the basics the basis of what will be a large durable and profitable business.
But today Lyft is at an inflection point.
People are getting back out to work and play and we have a renewed focus on delivering a great rideshare experienced.
Near term, we are prioritizing strong execution for riders and drivers.
This pure play approach will help us build a growing profitable business over the long term.
So here's what we've been doing and here's what you can expect next.
First over the last 10 weeks, we've been pricing rideshare competitively, which is what riders expect and want.
This is key and really important to remember every year millions of riders choose lyft over <unk>, we do.
Don't want to give them a reason to go the other direction.
The results could have been an acceleration in our year on year rideshare growth for the first time in nearly two years and a smaller percentage of rides with primetime pricing in this way we have strengthened our category position on both the bookings and ride basis.
Second.
To fund these service improvements, we've cut costs and restructured our organization we.
We didn't make these decisions.
To cut costs and head count lightly, but it is critical to consistently being able to offer good prices and fast pickup times <unk>.
Collectively we expect the changes we announced last week to deliver about $330 million in annual savings when in full effect and Elaine will review the financial impact of those in greater detail.
Even more importantly, we have restructured the organization and nearly halved the number of management layers grew 8% to five flattening teams and enabling for faster decision, making our new structure gives me direct contact with our rideshare leads removing layers. So we can innovate faster.
Third.
We need to drive awareness that lift is a great choice. So that more people open our app and see our improved pricing and service levels.
We have been too quiet for too long.
So youll see us use low cost high visibility ways to remind folks of who we are and point out real differences between us and <unk>.
I hope you've gotten a chance to see our collaboration we launched just yesterday with Tic Toc Influencer Delaney ROE it's.
It's funny, it's smart and it's designed to get people to consider us on there.
Finally, it's time to grow again riders and drivers both want a healthy competitive rideshare market with lyft as a strong player.
I can't yet share our long term growth plans, but I can tell you I'm spending the majority of my time on projects that grow topline and margin. In fact this was the topic of the very first meeting I had my first day of CEO three weeks ago.
I'm Super excited about what I believe is a significant untapped opportunity to innovate and grow North American rideshare.
So let me finish by saying that I am very aware, our current levels of growth and profitability are not acceptable.
I know that investors are waiting for long term updated long term targets I'm new in the job I want to wait to provide us targets until I'm sure we can deliver on it.
So here's a recap here's the game plan first at a time when demand is increasing we are all about execution.
We're focusing on the basics of what riders and drivers want and demand and in particular on competitive pricing that increases our ride volumes.
We have clear objectives, and we are executing in a disciplined way, we've structurally remove costs from our business and reorganized to increase the velocity of execution and Bill reading Bill excuse me bring real innovation to the sector.
And third my focus is on building a great business over the long term by focusing on riders and drivers.
That's what I learned from my time building Amazon's retail business and we're off to a very strong start look I am committed to growing lift into a large durable profitable business that our riders drivers and shareholders love. It when I look forward to keeping you informed on our progress.
Helane I'll turn it over to you.
Thanks, David to start I want to say a big Thank you to Logan and John for building lacked and for having the vision and pioneer of this industry.
I'm also excited to welcome David.
Already bringing a lot of energy and vision.
And I'm energized about the path forward.
Before I review, our financial results I want to remind everyone that unless otherwise indicated all income statement measures are non-GAAP and exclude <unk> items, which are detailed in our earnings release.
Turning to Q1, our focus on pricing competitively pretty solid early results.
Our year over year rideshare rides growth rate accelerated in Q1.
First time in nearly two years.
Q1 was a partial quarter of operating like this okay.
A full quarter impact from qui Tam, we expect rideshare rides growth to accelerate further.
Our Q1 financial results were better than guidance driven by Rytary shrink.
<unk> revenue was roughly $1 billion up 14% year over year and $26 million better than our guidance.
We had $19 6 million active riders in Q1.
10% year over year, which represents an acceleration from 9% year over year growth in Q4.
Revenue per active rider of $51 17 in Q1 up 4% every year.
11% year over year growth in Q4 of 2010.
And decelerating growth rate was primarily driven by our pricing changes.
Contribution was $465 million in Q1 down 7% year over year.
As a percentage of revenue contribution margin was 47% in line with guidance and down 11 percentage points from Q1 of 2020.
The decrease since last year is primarily due to higher insurance costs as well as lower provide unit economics.
Operating expenses were $465 million in Q1 down 2% year over year.
As a result of our cost cutting efforts to date operating expenses were 46% of revenue an improvement of eight percentage points from Q1 of 2010.
Q1, adjusted EBITDA was $23 million exceeding the high end of guidance at $15 million Alright.
Our adjusted EBITDA margin in Q1 was 2%.
We ended Q1 with a strong cash balance.
Unrestricted cash cash equivalents and short term investments were $1 8 billion flat with the level at the end of 2020.
Next I'm going to address the financial impact of our latest cost saving initiatives.
When our head count and operating cost savings are in full effect, we expect to generate approximately $330 million in annual savings.
This is made up of approximately $215 million related to head count.
And $113 million of operating cost reduction.
We expect to realize approximately 40, 50 and $70 million of savings in each of Q2, Q3 and Q4, respectively.
As David explained in the near term, we expect to use these savings to pay for our continued service improvement.
These savings will not materially flow to adjusted EBITDA.
Over time, the lower operating costs will position us well for improved long term profitability.
We are also further bringing down our stock based comp expense.
Changed our compensation plan and when combined with the impact of the staff reductions, we expect our stock based compensation cost will be roughly $550 million in 2023.
$350 million in 2024.
Down from approximately $750 million in 2022.
Our reduction in force will result in a onetime charge of approximately $41 million to $47 million in Q2, which we are excluding from adjusted EBITDA.
Before I share our Q2 outlook, let me provide some framing.
Q1, with a partial quarter of adjusting our prices to be competitive with the market.
Q2 will be a full quarter with this continued focus.
And we expect our rideshare rides growth to accelerate further.
While this will result in lower per rack unit economics in the quarter, we are actively offsetting the impact with our cost savings initiatives.
As a result, we expect our Q2 adjusted EBITDA.
And adjusted EBITDA margin will be roughly flat with Q1.
With that let me share our Q2 guidance.
We expect revenues of between 1 billion and $1 two.
<unk> 2 billion.
Which is up 1% to 3% year over year.
This assumes rideshare rides growth accelerate to at least 15% year over year in Q2.
We anticipate contribution margin will be approximately 42%, reflecting the full quarter impact of lower provides unit economics.
We expect operating expenses as a percentage of revenue will be between 42, and 43%, which includes roughly $40 million of restructuring related savings.
Finally, we expect adjusted EBITDA between $20 million to $30 million.
And an adjusted EBITDA margin of 2% to 3% at the midpoint.
Would be approximately flat with Q1.
Yeah.
Before I open the call up to Q&A, let me share three closing thoughts.
First we have a renewed focus on the basics of what riders and drivers expect.
Is accelerating a ride growth.
Second we are executing in a disciplined way.
It moved decisively to cut our operating costs and will use the savings to pay for continued service level improvements in the near term.
Third.
Over time with higher right volumes in Abilene Nexsan higher margin opportunities are economics can improve and we can achieve greater operating leverage.
As David mentioned, we expect to provide an update on our long term financial targets in the coming months.
Operator, we're ready for questions.
Yes.
At this time, if you would like to ask a question. Please press star followed by the number one on your telephone keypad.
If you would like to withdraw your question again press Star one.
Your first question is from the line of Doug Anmuth with Jpmorgan. Your line is open.
Thanks, so much for taking the questions one for David and one for Elaine.
David you talked about pricing more competitively and providing great service and both of those being big focus areas going forward.
But can you just talk about how you think lyft can really differentiate in the market over time.
Then.
Also provided when you talk about pricing more competitively is that pricing kind of in line with the market and with parity.
And then Elaine on contribution margin, reflecting the lower levels of revenue per ride.
How does that play out across both insurance and pricing and can we expect it around that low <unk> level going forward that you have talked about for <unk>.
Okay.
Hey, Doug it's David Thanks for the question.
So on differentiation.
Great issue.
Right now our real focus is on execution on the basics and as you said, it's really on pricing and getting service levels in line with where the market is and where the competition to us and it's just table Stakes now when you start to zoom out then you have to start to tell people.
Who you are.
In our case I think we've been a little quiet on that so even before significant differentiation I think just reminding people of who we are is really important.
Now we get the differentiation, we do have different models and again I don't know if you've seen the tick tock, but that gives you a little bit of an indication of one way we can differentiate in the short term, but medium and long term.
So many ways, where I think this category has sort of treated all drivers in all rides more similarly different and we've got a lot of ideas on how we can.
Create products and services that our riders and drivers both like that are really differentiated against where Uber is and maybe we can talk later in the conversation about some of the approaches we've taken around shared ride versus wait and save as an example.
But that will be for the future, let me turn it over to Alain for the second part of the question.
Hi, Doug Thanks for the question with respect to your question on contribution margin and lower revenue per ride versus.
What's driving things in terms of insurance versus pricing.
Year on year.
The increase in insurance rates that we experienced in Q4.
Impacting the contribution margin year on year.
As is.
Thanks.
From Q4 to Q1 and Q1 to our Q2 guide.
Curation and contribution margin is driven entirely by our lower revenue per ride driven by pricing and operating competitively.
Specific.
And prices on average.
We're generating less revenue per ride or.
Cost per ride have not changed materially subsequent to Q4 and that our per unit economics are compressing, which is driving the change in contribution margin.
In terms of long term margin, we are not giving go forward guidance at this point, but as we alluded to on the call, we'll be providing long term guidance.
Future time this year. Thanks.
Thanks for the question.
Great. Thank you both.
Sure.
Your next question is from the line of Stephen Ju with Credit Suisse. Your line is open.
Okay. Thank you so much so.
David in Atlanta.
Digging a little bit on your commentary in regards to the accelerating unit growth.
Does this imply that we have been decelerating I guess pretty much linearly since the peak in early 2021.
We are starting to see I guess, what is an inflection point.
And secondarily I think you guys have been talking about closing the service gap versus Uber. So as you are doing that are you finding that consumers are coming back straight away given the affinity with the lift brand or are you finding that you have to go back and.
The window business. Thank you.
Yes. Good question Stephen Thanks Port So on the first yes, absolutely.
Your characterization of it as an inflection point I think that's exactly what we're seeing we've been really on this sort of folks focused execution strategy for about 10 weeks.
<unk> seen some of the results there we've talked about the 30% overall.
Sure, we're enjoying up from sort of mid to high <unk> I can give you a little bit more color there and some of our markets, we're actually seeing even stronger growth Portland, Oregon being an interesting example of where we're running just about neck and neck.
Phoenix, Arizona being another example, Bryan pretty close in that connect and there are others. So what does that tell us that tells us that when we execute well.
Sure can move fast and riders vote with their apps. So that's what we're seeing in the.
In the short term and maybe I'll just stop there and we can talk about it more detail.
Okay.
Your next question comes from the line of Eric Sheridan with Goldman Sachs. Your line is open.
Thanks, Thanks, so much for taking the questions maybe I could follow up on some of the topics that were touched upon already in terms of driving incremental rider growth. What are you sort of investing behind to continue to build riders scale, where maybe there is an ability to have a differentiated market share dynamic among newer rider.
As writers coming back to the product versus a pre pandemic period as opposed to a possible market share dynamics among existing riders I'm curious your.
Sort of framework around that and then I know, we're going to wait for a period on longer term guidance, but I did want to understand a little bit better philosophically, how do we think about the <unk>.
Pricing lever versus the margin lever in terms of striking the right balance in the business over the medium to long term and how you think about sort of striking that balance against the broader goals. Thank you.
Mhm, Yeah, Great question, and my apologies I didn't catch the name at the beginning.
It is Eric Sheridan from Goldman Sachs, Eric Okay got you.
Sure. So let me start from the end of the question I'll work backwards.
Long term.
Pricing.
Pricing in line with the market, that's our strategy and that's where we'll stay.
<unk>.
Using pricing as a super interesting.
Area of our focus once you're in line. So then the question becomes how do you compete in other ways and part of it of course is we do have a brand that people like it's really quite an iconic brand and this is maybe easy to dismiss but it's quite important.
Writers make a choice every single time they open their app some of it's based on price, but once you take that away. It turns out to other things. Some of it is just brand impression how much they like you versus the other guys and then some of it is differentiated service so on that side.
We're building out some really interesting products and.
I can maybe alluded to a couple of just very very high level. One of course as we enter the summer travel season, Youll see us making noise. There in fact I think we've got an event planned next week to make some announcements and how we're going to make life easier, particularly for riders as they as they entered the summer travel season, and then another sort of secular thing that's happening is.
Bosses are trying to get employees to come back to work. We're doing the same here at Lyft, where we're making that actually a requirement of the job and so that's a really interesting opportunity because it gives us a way to introduce ourselves in a different way to take a nonproductive commute right into a productive commute right. So.
There is some real areas of growth I think we're just beginning of this data scratched the surface on.
I mean, if you're looking for sort of a framework. It is kind of price in line with the market differentiate on brand for sure and again you can see some evidence of that just what we're doing now and that will grow overtime and then really start to build some service levels or excuse me some products that meet head on people, where they are in 2023, which might be a little different from where they were in 2019.
Your next question is from the line of Nicole <unk> with Bernstein. Your line is open.
Hi, there. Thank you for taking the question I had a couple please.
On that Q2 revenue outlook.
Could you. Please unpack some of the underlying pieces, there and maybe provide some color around it.
Trip growth or bookings growth.
Just trying to understand how much of this low single digit revenue outlook is is it really a function of pricing and incentives, maybe which are so near term drags on revenue that you can lap at some point down the road.
And then maybe David on the back of the recent cost guys could you talk about some of the tradeoffs you might be making going forward.
Had to make.
Between kind of driving incremental.
GNC and maybe giving us some longer term growth opportunities like locks are shared rides. Thank you.
Hmm.
Yes, let's do this Nicole thanks for the question, let me, let Alain is going to sort of tackle the first part and I will tackle the second.
Hi, Nicole Thanks for the question on.
In terms of what is behind our Q2 revenue guide let.
Let me give you some more color on there we're assuming significant acceleration of the Reits growth in Q2, two at least 15% year on year.
The significant acceleration of our growth and we anticipate that that's faster than the overall market growth.
In terms of booking.
We're assuming in our.
Our Q2 guidance assumes that gross bookings grow at a faster rate quarter on quarter and year on year than revenue.
And as a result that means that our take rate is moderating quarter on quarter and year on year.
Hopefully that gives you a compelling behind Dara.
I'll get that revenue.
Thanks for the question Yeah.
And then on.
Sort of the cost cutting and kind of where does that lead I guess with that question.
<unk>.
Let me start with two things. The first is why did we cut costs, we cut costs. So that we could be more competitive for riders and drivers and pass along great prices and greater and so that was the rationale.
The second piece was.
Accelerating decision, making so it's maybe a little counterintuitive, but sometimes less is more and in this case. We think we can move faster now that we've right sized the organization, which I think sort of gets to the other point items. So much think of it as a tradeoff and I certainly did not let me say just affirmatively I am very focused on the <unk>.
Long term health of this business very focused on the long term health of this business. So I'm really not so interested in making short term trade offs.
Jeopardize the long term health and growth of the business that doesn't make any sense to me at all.
Now if you look where specifically you kind of alluded to a couple of things like for example, wait and save and I wasn't.
Actually bring this up even a little proactively because I think it's an interesting case study so wait and say is our mechanism for giving riders something they really like the SME segment of our riders, which is a way to save money and it's something we've leaned into.
We're quite excited about it it's a different approach from what Uber is taking we can talk about that if that's of interest but.
I bring that up as an example of we're very very focused on what our riders and our drivers one and Thats really the primary lens I used to make the cuts.
Great. Thank you both for the color.
Sure.
Your next question is from the line of Mark Mahaney with Evercore ISI. Your line is open.
Hi, guys. This is Ian Peterson on for Mark.
Quick question here, Greg if you could provide an update on how lyft pink is tracking I know.
Membership growth doubled in Q4, if you could just provide us an update there and any progress in some of your new key segments, including enterprise universities and health care.
Sure I'll speak a little generally here.
Actually sure whether we have much to report kind of on a more detailed basis, but we cannot we can find out on lyft pink. What's really interesting is if you look at those members they take more than doubled arrived on average and so what that tells me is that if your lift loyal for whatever reason.
So really important to US you are really important to us so we're going to double down on that now.
I think of it and it might be slightly differently from the way we've talked about Paso all acknowledge that.
This is how can we make sure we build a strong.
<unk> base of people, who are link assembly lift loyal and you'll notice a people I mean writers, but also mean drivers and I think thats going to be a real area of focus of ours over time, because the economics are such that.
Rider and driver acquisition is one thing, but retention is very different things. So anyway, that's a little bit theoretical I realize I'm speaking liking a lot what I see but I think we've got a lot more work to do a lot more.
Work to do there and I love. The fact that we've got such loyal riders.
I don't know Elaine do we want to go into any detail on the other segments or maybe not for today.
I can tell you data on our <unk> side, we've had really strong momentum with health care.
And as I've kind of alluded to we see some real opportunities to drive enterprise usage on our network and there I think I'll just have to stay tuned for more on that but that's what we got.
Great. Thank you.
Sure.
Your next question is from the line of Benjamin Black with Deutsche Bank. Your line is open.
Yes.
Hey, David perhaps this is a bit of a follow up but you spoke about in your blog.
Arrow, a focus and a discontinued share unlocks what gives you the confidence that this narrower.
<unk> are narrower rideshare offering can fuel growth and also is there any way that you can help us size the revenue contribution of shared or locks and then from a marketplace bounds perspective, how do you feel positioned today, and where do you feel the need to grow incentive.
Out of the market based either on the consumer side on the on the driver side. Thank you.
Yeah.
Yeah again, thanks for the question Benjamin and we'll see if we can divide and conquer a little about this one I'm actually going to bring up shared rides you just mentioned it and I want to say a little more about that because I know thats a change of what you've heard in the past.
We introduced shared rides of course pre COVID-19 one of the things we found though is it was.
The thing is a little complicated because certainly as we moved into Covid people, we're not at all interested in that product offering, but what they were interested in saving money. So we came out with a new product called wait and save and here's what I can tell you about that which is wait and save is already more popular and shared rides ever was.
And I think we can explain that again by looking at it through the lens of our riders and our drivers from a rider's perspective. It means you can save money without going out of your way and people really don't like that feeling of I'm headed to one place and all of a sudden I'm going in a different direction, they really don't like that feeling.
Drivers drivers also of the.
The added the loss of control, let's say because I thought I was going in one direction and then all of a sudden than picking somebody else up and by the way pickups and drop offs are.
The lease fund part of the drivers like they'd much rather have you in the car and have a good conversation with you or not but at least kind of stay on track. So we like our strategy. There are a lot and we're really impressed with how fast customers have.
Picked it up so again I'm using it as a sort of maybe example of kind of the bigger point of how we are evaluating the types of opportunities. We look at going forward both to differentiate from the competition as it turns out but also to give our customers our riders and our drivers, but they really want.
Again, if you would like to ask a question press star followed by the number one on your telephone keypad.
Your next question is from the line of Rohit Kulkarni with Ross.
Your line is open.
Hey, Thank you for taking my questions. So a couple of them.
Maybe talk about driver incentives and how that feeds into your data have gone up almost four.
Profitability versus growth.
The near term.
Been history of kind of a whole driver incentives.
Sometimes being very short term oriented and I always tend to be quite fickle. So would love to hear how are you.
Thinking over the next critical period of summer to incentivize drivers to drive more on the list.
And then.
Just on bikes and scooters, maybe the latest thinking on.
Beyond the restructuring on our bikes and scooters fits into the portfolio if things strategically.
We need to make any changes.
Because sometimes.
Lead to more seasonality than what some of the investors in.
In the comparison.
We brought in.
Thank you.
Sorry, we can't hear you Ben.
Rohit you faded out there a little at the end, but I think we got the the essence of your question.
Yes, let me, let's see let me let me say one quick thing about drivers Alain is going to go more into the incentive side, which is also the question. We were having last and then what kind of end up with with the bikes and scooters.
On the driver side I think a really important data point is that more drivers are choosing lift than ever before so at least in recent memory I can see more clearly so in Q1, we have the most drivers in about three years.
Which is really pretty exciting for us and we see that growth has accelerated in Q1 for the first time in a year on the driver supply side. So we.
That obviously is very important for our business for our riders as well and so I think can give you a little color on the incentive side of it yes.
So on the incentive side, we are being helped by a tailwind to organic supply.
Can you give me some color in Q1 in absolute terms.
And Contra revenue were $304 million on a per <unk> basis.
<unk> went down 13% quarter on quarter.
This is consistent with what we were anticipating it's also consistent with what we said in February that we'd be down quarter on quarter in absolute terms and on a pro rate basis.
And then looking forward to Q2, we currently anticipate that Contra revenue incentives will be roughly flat with the level in Q1, and also down quarter on quarter on a pro rata basis.
So.
Of course, the extent of our investment is dependent on what we see with real time market conditions, but that's our outlook.
And one other point of color to add we're seeing that are driving our investments are more efficient the costs are incremental driver hour was the lowest that it's been in two years in Q1 and again, that's helped by tailwind we see organic decline.
I'm going to say one more super quick thing on that one and then move to your <unk> question and this is a little bit more philosophical you guys.
Of course driver incentives will always play a role.
They help balance supply and demand in the short term I will tell you backing.
Backing up just a touch.
The driver is really like the work they like the flexibility it gives them the control it gives them over their time and they like the flexibility and frankly control it gives them over there.
Their earnings.
What are the drivers said to me not so long ago, I love driving for lift because I know I'll never go broke I can just drive more when I'm, saying that is because while again incentives are important strategic in the sense strategically.
Don't make for the best driver experience because they reduce.
Visibility into earned earnings and so we will use them correctly and it's there is nothing wrong with that but.
If not let's say strategically it's a it's the tail of the dog, it's not really the dog is obviously create a great experience for drivers.
Now on your question about bikes and scooters and kind of other businesses.
A couple of things I want to get too first so we've.
<unk> focus is I think a real strength of ours I mean, we're effectively a pure play on rideshare. So that's important for us to execute on as well. So what are we that we wound down the car services.
What we call garage and the consumer rental business.
We experimented with it for a while we're spinning a loop, which is the infrastructure that we built in house, but not a material changed economically but it's material in terms of our our focus and now we get to bikes and scooters.
The bike.
Operation and this is a sort of secular comment on but to make E. Bikes are a big deal when people ride Ebix date, they like them a lot.
But for US I think we haven't done the job we need to do to make sure that every time person ride the bike they get welcomed into the lyft ecosystem and frankly welcomed into the rideshare side of things. So we will do some thinking on how to do that better. We've also got some work on the economics of the bike side of our operation to tune up it's a capital intensive business relatively of course.
So we've got some work to do there to kind of optimize but.
I like the interplay, we have and I think we can do even better.
Great.
Great.
Your next question comes from the line of Steven Fox with Fox Advisors. Your line is open.
Hi, good afternoon.
You've talked a lot about just.
Making new decisions around product offerings, and I think the company has a pretty good history of introducing products with decent level of success, so I'm trying to understand.
What youre seeing that needs to change in terms of maybe how you introduce products into the rideshare space.
What mistakes were made in the past and.
What kind of activities going into it now with under the new structure.
Mhm.
Yeah, Thanks, Steven and thanks for your comment about the pass is while I agree look in terms of changes I think bigger and faster.
Bigger and faster. So I think we have some big opportunities in front of us that to certain extent COVID-19 flotus all down from and now we're kind of on the other side of that so we can think big again and then ask is just it is a bit of a mantra internally of how can we move more quickly because drivers excuse me riders and drivers expectations are quite dynamic.
Change and so.
Our focus of course is on building a profitable business that profitability is going to be driven in large part by can we create products and services that our drivers and riders absolutely love. We've got a great brand, we have got great history to build on and.
Lots to do and we want to do it with urgency.
That's helpful. And then just any comments on sort of how you think.
Economy, eventually fits into your network going forward.
I do I mean, it's.
Yeah lots to say about this but I'll be very brief today.
Autonomy the big deal, it's a big deal and the reason is the big deal is because the companies that have invested in it so far have invested and this is not hyperbole billions of dollars into their platforms.
That means that in order for them to have any chance at all making a decent ROI or any return on that investment they got to plug into effectively.
<unk> fleet in a very generic way of operators, who can bring that volume because it can take a while and the consumer side. These are going to be expensive and sort of niche for some period of time, so very very important that we position ourselves as being an incredible partner now we're doing some experiments in Las Vegas with this we've got cars on the road.
Kind of a venture there and the whole point of that is to be.
Be very very ready to be that great partner with the Eva guys.
I'll say one last thing this.
In Lake.
Hi.
Thank you.
We will wake up one day and think Wow, where did this come from where does it come from so fast so right now the <unk>.
Narrative is oh, it's always just around the corner, it's always the threat of course and that's been true.
If you're here in San Francisco and again. This is not hyperbole you can within five minutes C. Five cars driving with no one in the front seat and Thats again not appropriately that's lived reality day by day. So what that tells you is this is one of those phenomena that are going to see below the surface for most people for a fair period of time kind of background noise, but when it happens.
They will happen fast and we are.
Positioning ourselves to be very ready for that.
Great. That's very helpful. Thank you.
Sure.
There are no more questions at this time, ladies and gentlemen, thank you for participating. This does conclude today's conference call you may now disconnect.
There are no.