Q2 2023 Lyft Inc Earnings Call

Good afternoon, and welcome to the Lyft second quarter 2023 earnings call. At this time all participants are in a listen only mode to prevent any background noise. Later, we will conduct a question and answer session.

And instructions will be given at that time, if anyone should require operator assistance. Please press Star then zero on your Touchtone telephone as a reminder, this conference call is being recorded I would now like to turn the conference over to Sonya Banerjee head of Investor Relations you may begin.

Thank you welcome to the Lyft earnings call for the second quarter of 2023 on the call today, we have our CEO , David restaurant, and our CFO Erin Brewer. In addition, Kristen spare check our president is here for the Q&A session.

We will make forward looking statements on today's call relating to our business strategy and performance future financial results and guidance.

The statements are subject to risks and uncertainties that could cause our actual results to differ materially from those projected or implied during this call.

These factors and risks are described in our earnings materials and our recent SEC filings.

All of the forward looking statements that we make on today's call are based on our beliefs as of today and we disclaim any obligation to update any forward looking statements, except as required by law.

Our discussion will include non-GAAP financial measures, which are not a substitute for our GAAP results.

A reconciliation of our historical GAAP to non-GAAP results may be found in our earnings materials, which are available on our IR website.

And with that I'll pass the call to David.

Thanks, Tony Good afternoon, everyone and thanks for joining us.

To start I wanted to take a moment to introduce Erin Grauer, who joined as the CFO in July .

And as a skilled finance professional and brings an incredible 123 punch of strong technical abilities excellent business judgment and great leadership.

She is also a valuable thought partner she knows how to drive growth and operate efficiently at scale and she's an amazing leader to our finance team.

He and I are completely in sync on the opportunities ahead, and I am thrilled to be working with Aaron to build a rider and driver obsessed durable and profitable business and it's great to have you here.

Now, we're going to talk about what we've been up to and what's next.

Our.

Customer obsession and focus on strong execution is really paying off.

The effects can be seen in our Q2 performance.

Rideshare rides grew 18% year on year accelerating for the second quarter in a row and standard rides reached the second highest level in our history.

Active rider and drivers.

Each reached multiyear highs, resulting in an improved balance in our marketplace.

So relative to Q1, the share arrived effected by prime time pricing dropped by 35% and a larger percentage of right intense converted into rides taken with.

With more people getting out to work and travel the market is growing and with the strength of our actions they are increasingly choosing lift.

Second we are doubling down on innovating for riders and drivers we're already seeing the results of our April reorganization with flatter teams communicating more effectively and making decisions more quickly at.

At the same time, we've opened up more channels of communication. So we can hear directly from customers.

Through driver Roundtable discussions surveys and our various public inboxes, including my own.

Been getting a lot of information about what we've been doing well and where we can still improve.

And we're acting on what we're learning.

I have been so energized by how quickly changes to our product can translate to better customer experiences.

I actually wanted to go deep on this for a second in June we addressed some of the drivers top requests and pain points with the driver App with the relief that gives them more control over where and how they learn so here are two examples first we made our proprietary stay within area of filter a more precise.

The drivers can pinpoint where they want to drive and flex the area for pickups and drop offs to within a five mile radius.

This is absolutely huge it means the drivers can stay within their own neighborhood, if they want and not end up super far away at the end of the day.

This update resulted in a 26% increase in a number of drivers who used the feature in addition to an increase in driver hours weekly retention rates.

I actually used the feature myself when driving for Lyft.

To make sure I got home in time for dinner with my wife and is a total game changer.

The second thing we did is we created our ride challenge bonus program to give riders even more choice.

So now instead of being offered a specific challenge drivers can choose from a menu of options and choose the challenge that works best for them. It might be long rides are short rod you might be working on weekends weekdays.

Feedback on the launch has been really positive with more than half of drivers, saying. These changes have made their overall experience using lift better.

So these kinds of updates have an enormous impact on driver satisfaction and preference and that's really important to understand.

Among the drivers who use both lyft and Uber, we have seen a 25% increase in preference for lift since Q4 of last year.

And in Q2, the number of drivers using web grew by more than 20% compared to Q2 last year and driver hours increased even faster up by more than 35%.

We will closely monitor driver preference because we want to see it keep growing.

Over on the rider side, we continue to see growth and in particular with weight and safe, which is our most affordable rideshare option.

So wait and save offers riders a way to save money when they arent in a big hurry.

Lets riders price shop within our App instead of going the other guy.

In Q2 waiting to take trips grew by more than 40% year on year and reached new all time records far exceeding where our shared ride volumes ever got in just to give you a specific data point that gives you a sense of how large is the New York City alone, we averaged more than 150000 wait and save rides per week in Q2.

So you can expect us to continue innovating for our riders and our drivers which creates an increasingly differentiated experience over time customers are reacting positively to what we're doing and theres a lot more to come.

Finally, we're building on our strong brand recognition reminding the world that lift is a great rideshare choice.

So most people already know our company and I feel this all the time when I introduce myself our awareness levels are Super High service tell us that over 70% of U S. Adults ages 18 to 65 are familiar with Lyft.

So now as we approach the back to school season, and the back to work season, which I'm sure. We're all reading about riders tend to change their habits. So this is exactly the moment for us to remind everyone to consider using lift, particularly those who haven't used us or considered us in a while.

In the coming months will be teaming up with other well known brands as a way to raise awareness even further stay tuned for that.

So in summary, you all we are executing well on our strategy of being customer obsessed and the results suggest this strategy is working riders and drivers want and value choice. It's in everyone's best interest for there to be two strong players competing for their business by obsessing over our customers. We can continue to differentiate us.

Valves and grow this market and we have an incredible team that's focused on these objectives and much more to come on all of that in the coming months and quarters.

Now I want to turn it over to Aaron.

Thanks, David and thank you to everyone for joining us today I also want to thank the entire lids team for giving me such a warm welcome I've been really impressed by the depth of talent and culture and I'm excited to be a part of lifts next chapter.

We have an amazing brand a big market opportunity and we serve an important purpose for drivers and riders.

One of the reasons I joined Lyft is because it's a great fit.

David and I showed the same philosophies around building, a durable healthy and profitable business.

So today I want to provide you some insight into how we're working together and what you can expect.

First we're building lift for the long term will be customer obsessed taking into account the needs of both drivers and riders and the corresponding health of our marketplace.

Second we're pressure testing goals and commitments to ensure they are aligned with what we wanted to accomplish long term.

We'll be disciplined and consistent in how we execute both in the near term and in how we think about future growth opportunities in the business.

Third we're going to be clear with investors about our specific measures for success.

We're focused on making it easier for the investment community to follow our progress and get behind what we're doing this is one of my top priorities in the coming months.

Next I'm going to discuss our Q2 results and share our Q3 outlook.

I'm also going to address our upcoming third party insurance contract renewals and provide some directional commentary about the fourth quarter.

Before I dive in I want to remind everyone that unless otherwise indicated all income statement measures are non-GAAP and excludes select items, which are detailed in our earnings materials.

Now in terms of Q2, the rideshare market is growing and our focused execution is paying off.

Q2 represents a full quarter pricing rideshare competitively and roughly in line with the market.

And the balance in our marketplace improved.

We had strong driver growth and a strong mix of new and returning riders with the average number of rides taken by each active rider, which we refer to as frequency, reaching the highest level in more than two years.

With our renewed focus on delivering an experience that riders and drivers love we've seen momentum across use cases commute and early morning trips were standouts growing by just over 20% year over year, and we had the highest volume of airport rides since 2019.

All of that translated into solid financial performance in Q2.

Revenue was $1 billion $21 million up 3% year over year.

This reflects the combination of strong rideshare rides growth up 18% year over year.

Along with a lower revenue per ride given our focus on pricing competitively and roughly in line with the market.

In addition, our bike and scooter system sales showed strong growth year over year.

This was partially offset by a nonrecurring legal costs in the quarter that was classified as contra revenue.

Active riders were 21 5 million up 8% year over year, driven by strong rideshare demand.

Lower revenue per ride naturally affected revenue per active rider, which was $47 51 in.

In Q2 down 5% from Q2 of 2022.

Contribution margin was 42% in line with guidance.

Relative to Q2 of last year contribution margin increased by 10 percentage points.

As a reminder, in the second quarter of last year, our contribution margin was affected by approximately $275 million of adverse development on our legacy insurance reserves.

Excluding this impact contribution margin in Q2, 'twenty three declined by roughly 18 percentage points year over year, reflecting higher insurance costs compared to Q2, 'twenty, two and lower revenue per ride.

In absolute dollars contribution in Q2, 'twenty, three was $426 million up 35% year over year.

Operating expenses were $410 million down 24% year over year, due primarily to our cost restructuring initiatives.

As a percentage of revenue Q2, operating expenses were 40% compared with 54% in Q2 of the prior year.

I will point out that operating expenses were roughly $20 million lower than guidance, we provided for the second quarter.

Our outlook assumed operating expenses would include the impact of a nonrecurring legal cost.

But this expense was instead classified as contra revenue, which I referenced earlier in my comments on Q2 revenue.

Q2, adjusted EBITDA was $41 million and exceeded the high end of our guidance range.

This performance was driven by stronger rideshare demand than expected our adjusted EBITDA margin in Q2 was 4%.

We continue to have a solid cash position. We ended Q2 with unrestricted unrestricted cash cash equivalents and short term investments of approximately $1 $7 billion.

Before I share our outlook for Q3, let me provide some framing.

We've entered the third quarter on solid footing in July we saw continued healthy supply trends as 25% more drivers use lift versus last year and driver hours grew by nearly 45% year over year.

Rider demand also grew in July with right intense up 17% year over year.

And our conversion rate continue to improve both year over year and quarter over quarter.

The share of rides affected by Primetime also continued to decline sequentially in the month of July , reflecting an even better balance of drivers and riders.

With our focus on strong execution and delivering for our customers, we anticipate rideshare volume growth in the third quarter of approximately 20% year over year.

With that let me review, our Q3 guidance.

We expect revenue of $1.130 billion to $1 billion $150 million up 7% to 9% year over year.

This reflects rideshare rides growth of approximately 20% year over year as I just mentioned.

In addition to lower revenue per ride versus the prior year period with our focus on operating competitively with the market.

We anticipate contribution margin will be approximately 45%.

The sequential improvement of roughly three percentage points reflect healthier driver supply dynamics. In addition to lower Contra revenue, which will not include the legal cost that offset Q2 revenue per my earlier comments.

We expect operating expenses as a percentage of revenue will be 40% to 41%.

Selecting an increase in volume driven cost and targeted marketing spend partially offset by incremental savings relative to Q2 from our recent cost restructuring initiatives.

Finally, we expect adjusted EBITDA of $75 million to $85 million and an adjusted EBITDA margin of approximately 7%.

I'd like to turn now and make some directional comments on the fourth quarter in anticipation of our third party insurance contract renewals on October 1st.

We'd like to give you our current best thinking on the range of expected outcomes.

Our preliminary view of the fourth quarter suggests revenue will grow low to mid single digits quarter over quarter.

Additionally, fourth quarter adjusted EBITDA margin as a percentage of revenue will be in line to slightly lower than the level in Q2 2023.

This reflects expectations of continued strong rideshare rides growth year over year in the fourth quarter.

The impact of our insurance renewals and continued improvement in our cost structure.

Of course, we will look to refine this view in our Q3 earnings call in the fall.

Let me address how we are managing our third party insurance renewals and what we are doing differently. This year.

With the Q4 renewal of our third party insurance contracts.

We expect to have substantial visibility into our insurance costs for the next 12 months.

Going forward, we have proactively change the structure of these agreements to allow us to stagger our renewals in certain states.

We believe this staggered structure gives us better optionality and is a better way to manage our insurance.

Additionally over the long term, we will continue to build on the work we've done to bend, the insurance cost curve through product and safety initiatives that help reduce accident frequency and improve settlement outcomes.

Finally, I want to share a few closing remarks.

Had a solid second quarter, and we have strong momentum going into Q3 in the back half of the year we've.

We've improved our cost structure and we're operating more competitively and the team is unified and focused on delivering great experiences for drivers and riders I am excited to be here, we've got lots more to do to build on our progress and I look forward to keeping you all updated.

Operator, we're now ready to take questions.

Thank you if you have a question. Please press star one on your telephone keypad, if you wish to remove yourself from the queue simply press Star One again one moment. Please for your first question.

Yeah.

Your first question comes from the line of Stephen Ju of Credit Suisse. Your line is open.

Great. Thank you so much so.

David you know I've been at the helm for about four months now. So is there anything you can share in terms of what projects you may have prioritized versus de prioritize in terms of resource allocation.

And maybe this is a little bit too early but is there a way to parse apart how much of the volume growth acceleration is due.

Primarily to price versus product innovation and price matching.

Lever you can probably call ones, but the service improvements pseudo products should be more durable. So I'm just wondering if you could share any sort of perspective there. Thanks.

Yes, Sir.

Awesome, great to hear from Stephen right, Yes, Okay. So secondary to hear from you David.

Yes, it has been I feel like the old timer here.

Three months in or something like that 100, and some days. So a couple of things first thing I'd say just baseline is our strategy of sort of customer obsession.

And good execution is working.

And we can see it.

<unk> sort of speak for themselves, 18% up year on year, and so forth. So that's super Super excited.

If you then go one level deeper to the sort of second part of your question is well.

How much was price and how much for other factors and there is sort of an all of the above thing going on right. So we're very focused on improving service for riders, we're very focused on making sure. Our driver experience is great. We're making sure that when customers do check both apps riders I mean, they get a fair price and then that allows us to start competing on other things and so.

As an example, there wait and say, which I mentioned before is a product innovation that we're very proud of and really leaning into same with some of the airport work. We did in Q2 that allows people in some airports to basically call Lyft as soon as they are playing catchup touches down and the cars right. There so.

How to split out what's price versus what's products innovation, a little bit hard what I can tell you is I would add a third thing to what's driving growth, which is a secular move.

Back to school is a thing that we're very focused on that back to work as the bigger thing every day you probably saw the articles about even do trying to get people back to work that's the thing.

But we definitely play a role there. So there is some of all these things kind of going but I think it's kind of more of a story of firing on all cylinders rather than.

And then any one of those and last thing I'll say is we've got a lot more innovation on sort of the rider and driver side coming up which we think will be step change the overtime that's longer term, but that that will start to drive even more growth.

David I, just might add to that.

In addition to the great progress we saw here in the second quarter, our Q3 outlook and the directional commentary we provided on the fourth quarter assumes continued strong rideshare rides growth.

In the back half of the year.

Thank you.

Sure.

Your next question comes from the line of Eric Sheridan of Goldman Sachs. Please go ahead.

Thanks, so much for taking the questions two if I could maybe following up on Steven's question also just what would you characterize just some of the key elements you feel you continue to invest in whether it's on brand or product differentiation to continue sort of to some of the growth momentum not just in Q3, but going into Q4.

It's early and appreciate the framing of of Q4, but in terms of some of the growth dynamics in Q4, I am curious about how much of it is cost headwinds that will hamper some investments in the business that could cause a slowdown in growth are just elements of lapping impact youre seeing versus the year ago period. Thanks, So much.

Yes, Hello, it's Aaron and I will kind of tag team on this one as well.

I didn't.

Josh on the Earth.

Can you repeat the first part of the question again, just so I have got that kind of focused.

I just wanted to know what some of the key elements. You think that you have to sort of lean into to continue some of the momentum in growth and you talked about Brad just talked about product service elements of that.

For sure for sure. So let me I'll sort of start okay, I'll kind of build the stack here a little bit. So it really does start with doing the basics well and operating.

Yes, excellently I mean, we talk a lot about operational excellence within lift now and Thats a real area of focus you'll remember when we were giving hundreds of millions of rides a year so small changes.

Amplify that huge differences and you can see that we've talked a lot about price, but you can see that in Eth. The pickup time, our average pickup time now is 10% faster than it was a year ago, that's really significant because every single ride people want to get picked up faster. So thats part of it I'll start there.

When you build on top of that some of the.

The awareness building work that we do now this is interesting because we're a very well known brand and no one should take that for granted.

Pizza brand spend hundreds of millions of dollars and are at or unknown, whereas we were very well known and I mentioned this in my comments.

This is still a personal comment now people ask me.

What do you do and also having the CEO of Lyft and people say, that's incredible what a great company and I, sometimes joke that no disrespect to other companies, sometimes I joke that if I said I'm the CEO of darkness on it but it was really cool.

But this is a different thing so people have a real emotional attachment program. That's a great great starting point in high awareness. So you'll start to see us amplify that now we're not doing times square Jumbo Tron.

Super Bowl AD stuff, we're doing much more sort of targeted focused social media work and other work with the press to get the word out and really the message there is listen back and you as a driver of excuse me as a rider you want both apps on your phone you don't just want Uber because both are better than that choices very powerful message. So that's sort of the second layer of the stack.

And then you start to add on top of that some real customer innovation and.

I'll give you.

Maybe just one example of something we're working through now and that's working very directly with both companies and even cities to try to help back to work returned to office go smoothly and go well I was lucky enough to meet with the mayor of San Francisco, a couple of weeks ago, and reiterated our commitment to helping San Francisco recover.

By helping people get out of house and back to work is so important for our downtown area. So you add and then of course, we're doing that with companies too I think we have arrangements now with Cisco and I'm going to forget about Netflix I think in a couple of other trials, we're doing to help people get back to work because they come back to the office. So it's sort of all the above and I think as Aaron's if that law.

Sort of investment going on here to make sure that we continue to grow and we're off to a really good start.

I'll say, a very quick thing on the cost side, and then Aron will point out we don't.

Yeah.

How can I say that sort of well. So we have this insurance renewal thing, we'll talk more about that that comes around every year and we're doing things to spread that out over time. It's just the basic cost of the sector that we have to deal with and so our strategy is first of course to get the best rates. We can do as good a job as we kind of negotiating with the company.

Yes.

Providers of course.

Then the second is how do we figure out a way frankly to absorb as much of that cost as we possibly can using all sorts of efficiency strategies and so on and so forth.

Only after we've exhausted all of that do we want to pass any of that charge loan to our customers and we really don't want to do that if we if we can avoid it and so that's kind of the workwear plant. It's not so much about investing less in innovation or whatever we've got we've got funds do that it's really how can we figure out a way to cover those costs such that we don't.

What customers that's right, we don't want our passengers our underwriters are drivers.

Yeah. Thanks, Eric.

Might just reiterate that we do expect a similar level of rideshare rides growth year over year in Q3 and in Q4, So that's approximately 20%.

So.

Maybe you could just clarify a little bit more about what you meant by not being hampered by investment, but just reiterating that as our assumption.

Just wanted to know if theres elements of some of the insurance costs, you've called out that will sort of have an impact on the ability to redeploy capital back into investing in the business in Q4.

No I don't expect that to be a factor.

Okay.

Thank you. Your next question comes from the line of Doug Anmuth of Jpmorgan. Your line is open.

Great. Thanks for taking the questions one for David and one for Aaron.

David It sounds like Youre, making good progress with weight and say.

Any update to the 30% plus of rides that you'd previously mentioned and then just given the volume of rights here, how should we think about profitability of that product and then Aaron just following up on the preliminary <unk>.

Outlook, just I guess, just trying to drill down a little bit more on the revenue to understand why the insurance renewals are impacting revenues potentially as much in in <unk>. So anything that comes up to suggesting like low single digit year over year growth. Thanks.

Yes, great to hear from you Doug I'll take the first one.

I will take the second so on the <unk>.

<unk>.

Oh, My God I'm, sorry, it's just totally lost my train of thought say the question a little more time with my answers that we can save of course, yes. So what you can say.

We're not giving we don't want to sort of getting this mode, where we kind of always give exact data on it but.

But I can say, it's up about 40% year on year.

It is.

All time record.

I think that's like 25%, it's significantly higher than shared rides ever was and to give you a perspective on it in New York City alone in Q2, we averaged I think it was about 150000 wait and save rides per week to give you a sense of the scale of it.

So the second part was about profitability and what I want to say there is and this is something people hear me say around the company to give maybe a little sick of it first do the right thing and then do things right. So the right thing is for us to offer an option in our App that allows our riders to save to tusa state money when they want to and everybody likes a deal and then <unk>.

Over time, we're optimizing the profitability of that now any portfolio is going to have some lower margin in some higher margin products and I expect this will be a lower margin product forever.

But there's a lot of work we're doing behind the scenes to improve the profitability of it and also help us power.

Some of our other ride services anyway longer conversation, but the short version is right now it makes it somewhat.

Tomorrow to make us more money and we love the volume that we're seeing because that's a great place to build on.

Yeah. Thanks, Doug.

Just to be clear insurance does not impact the revenue line.

Gave you a topline framework and bottom lines framework.

Again, just to give you a sense for our best thinking right now about the fourth quarter.

So on the top line I think we've given you information about the trends that we expect.

And remember the quarter over quarter rate in Q3 reflects reflects the take rate. We're also assuming pricing and the market stays relatively consistent levels.

Over quarter, so hopefully thats helpful.

Thank you.

Your next question comes from the line of Mark.

Hany of Evercore ISI your line is open.

Thanks, two questions then one on product side with drivers it sounds like you've made some real nice improvements that have improved driver satisfaction, just going forwards is that.

Leaning into those innovations are there other areas that you think are kind of greenfield opportunities in the market and then anything new on the regulatory landscape. It seems like that's died down I assume thats all I assume no news is good news, but anything that you think we should watch out for thank you.

Yeah, Hey, Mark good to hear from you. So on the drivers side. There is so much more to do there is so much more to do and the frame here is this.

Drivers millions of drivers are making billions of dollars on our platform right. So that's a big big deal and what it means to US is we have to take their needs Super seriously and this is something again, we stay inside there are two customers in every car there is a rider and the drivers. So on the drivers side a lot of the innovation you're going to see is around.

Transparency around making it easier for people to see for drivers to see how much money. They are making right and so you probably heard us talk before about upfront pay which allows drivers to get a sense of how much we're not sense a good pre accurate predictions, how much theyre going to make before they accept the rod.

Do that wallet reaccelerating the top line as well thank you.

You want to take that one.

Yeah, Yeah sure I'll start with the second part so you know first and foremost what I'd say is you know generating consistent positive free cashflow is definitely a priority for the company.

I think about the near term there's a couple of different things to think through in particular in our second quarter results.

The first one is insurance payments.

The second piece is cash out related to our restructuring programs and we expect that portion to be substantially complete in the second quarter and then the third main factor is capital expenditures, we have invested over the first half of the year and an acceleration of the mix of E. Bikes for example within.

R. T B S business, we do expect that to moderate over the second half of the year, but I'll just come back around the saying you know again moving toward consistent positive free cash flow is is a top priority as we think about navigating for the longterm.

And if you're all sorta take a little the first question I mean, we're not going to give us specific guidance on growth over time, but I can say that.

Two things first I think an area, where both Uber Lyft would agree is.

Still early days for Roger It really is there're so many segments.

<unk> returned to office anyway, there's so many segments that I think we're just beginning to penetrate congest beginning to help people see the rideshare really can make their their lives easier and.

I think that's.

Sort of over in that phone on Covid and stuff, but I think as you see people.

Get to the next phase of their life, whatever that looks like I hope it involves getting out more.

Do I. It's good for society is good for mental health, it's certainly what a lot of bosses want and you rarely hear people say gosh I wish I'd stayed in more I'm a happier person as a result, so I I think there's there's a lot of by focusing sort of segment by segment, there's a lot more growth or to be unlocked and then the other piece that I really focus on is frequency.

Heavy rideshare user might use rideshare, you know four times a month once a week maybe twice a week, maybe an hour you'll get into a quite a heavy user I think of the number of times you leave your house, you know one way or another and the number of times you. Therefore, I could park your car driver be caught in traffic or all these things. So I mean I know this is sort of it's almost as her early pieces of rideshare coming back, but I really think it's true.

I think we're we're very very early on that and when we when we see you know back to work back to school, and then sort of winter travel and so on and so forth. We see lots of opportunities just for people to kind of get Reacquainted with and then hopefully even more excited with rideshare with two strong market.

Players.

Great. Thank you both.

Your next question comes from the line can Gorilla ski of was Fargo. Your line is open.

Thanks, So much I appreciate it a couple of questions. If I may 1st I just want to drive.

Go a little bit deeper on on the four two revenue growth rate implied and the and the and the look forward could you talk a little bit about the take rate on a year over year change I think four 222 take rate was up pretty meaningfully from <unk>. Four Q21 could you just talk about some of those elements that might be.

Be impacting the year over year growth deep cell implied in four Q versus three Q given the other otherwise healthy dynamics you talked about and the second is this supposed to apply for the fourth quarter and and all sorts of 24.

Both you and your competitor I have a step ups and insurance costs. So cost per ride rises how do you think about a more how do you think about pricing in that environment and what do you think is the most constructive way way to think about that the next 12 months.

Maybe I'll start with that.

Sorry at the end and kind of and then work backwards and then <unk> what kind of finish up again so.

I think we're sort of where we wanna be in <unk>.

Then I think this is an area where.

We still it made a big decision earlier this year.

Price in line with the market and now we're really a lot of our focus is more focused on competing on service and differentiation and so forth. So you know.

I don't expect that to change dramatically.

One sort of subtlety here, which I don't know that we've highlighted is.

You know the prices are not just the way we stopped what we call the base price, but it's also this primetime idea prime time also.

Also called search pricing Uhm, Uber is where you basically don't have enough drive.