Q1 2025 Uber Technologies Inc Earnings Call

May 7, 2025

There will be a question and answer session.

If you would like to ask a question. During this time press star one on your telephone keypad.

Speaker Change: I would now like to turn the conference over to both edgy Krista Murphy, Vice President strategic Finance and Investor Relations you may begin.

Thank you operator.

Speaker Change: Thank you for joining us today and welcome to <unk> first quarter 2025 earnings presentation.

Dara Khosrowshahi: On the call today, we have Uber CEO Dara cause Roche I and CFO Shaun mandatory Roger.

Dara Khosrowshahi: 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 Uber Dot com.

Dara Khosrowshahi: Certain statements in this presentation and on this call are forward looking statements you should not place undue reliance on forward looking statements and actual results may differ materially from these forward looking statements. We do not undertake any obligation to update any forward looking statements, we make today, except as required by law.

Dara Khosrowshahi: 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 Form 10-K, and our other filings made with the SEC.

Dara Khosrowshahi: We 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.

Dara Khosrowshahi: We will open the call to questions. Following brief opening remarks from the arm with that let me hand, it over to Dara.

Dara Khosrowshahi: Thanks, Paul Jake we're off to a strong start this year against the backdrop of headlines on trade and economic policy.

Dara Khosrowshahi: Each component of a multi year growth framework is humming our audience grew 14% to 170 million monthly active consumers engagement strength continued with trips up 18% and with retention rates hitting all time highs globally.

Dara Khosrowshahi: And gross bookings grew in line with trips fueled by strength across both mobility and delivery.

Dara Khosrowshahi: We see this as robust healthy growth robust now coming growth is coming from engagement and frequency not just the price with the that's the right way to maximize long term free cash flow per share and in Q1, we generated record adjusted EBITDA of $1 9 billion up 35% year on year and free cash flow of $2.

Dara Khosrowshahi: <unk> 3 billion.

Dara Khosrowshahi: The <unk> team has been a major execution mode, we launched with Weibo in Austin with around 100 cars that are all exceptionally utilized.

Dara Khosrowshahi: Our five AAV partnerships with deployments to come in the U S Europe and the Middle East.

Dara Khosrowshahi: We signed a partnership with open table to integrate dining delivering transportation for our customers and we went live with our Delta Skymiles partnership.

Dara Khosrowshahi: And we announced the acquisition of <unk> go to supercharge, our future growth in Turkey and that is all just in the last two months.

Dara Khosrowshahi: Looking ahead, our Q2 outlook should underscore our expectation to reliably deliver more of the same strong topline growth.

Dara Khosrowshahi: And with even stronger profitability growth setting us well for the seasonally stronger second half of the year.

Dara Khosrowshahi: And as I said to my team I feel great about where we stand we're on solid footing with a clear strategy and ambitions that have never been higher and that's why I'm emphasizing the good is not going to be good enough, we need to be great to continue to deliver for the people in the cities that we serve and of course for all of you.

Dara Khosrowshahi: So with that let's get some questions going.

Dara Khosrowshahi: Thank you operator, we're ready.

Speaker Change: Your first question comes from the line of Doug Anmuth with Jpmorgan. Please go ahead.

Doug Anmuth: Thanks for taking my questions I have two.

Doug Anmuth: Just on mobility as you work to keep prices low curious what kind of elasticity you think youre seeing in terms of the response and how thats showing up in rides and then on the you talked about almost 100 cars in Austin on the way to 100, what are you seeing there in terms of utilization of those <unk>.

Doug Anmuth: Relative to some of their other markets. Thanks.

Doug Anmuth: Absolutely so Doug on mobility.

Doug Anmuth: The elasticity that we're seeing is similar to <unk>.

Doug Anmuth: Past.

Doug Anmuth: Usually for.

Doug Anmuth: Dollar of increase in terms of price transactions are negatively affected now theyre short term losses sitting in long term losses in your promotional efficacy that you see in session. And then we think that's longer term elasticity, which is as you tend to kind of get used to prices not increasing as much.

They were in the past couple of years, how does your how do your habits change how does <unk> change. So we're happy with the results that we saw in terms of the pricing that we were able to deliver to the consumers as we saw the insurance headwinds ease a little bit and hopefully we'll keep that going there was also kind of a mix shift in terms of trips.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, press Star 1 on your telephone keypad. I would now like to turn the conference over to Balaji Krishnamurthy, Vice President, Strategic Finance and Investor Relations. You may begin.

Doug Anmuth: A bit more growth internationally than the U S.

Doug Anmuth: Especially in the travel sector.

Doug Anmuth: That affected overall price mix, so to speak but so far I would say so good in terms of elasticity in terms of AZ and in Austin, We're very very encouraged with what we're seeing obviously weibo has.

Balaji Krishnamurthy: Thank you, operator. Thank you for joining us today and welcome to Uber's Q1 2025 earnings presentation. On the call today we have Uber CEO Dara Khosrowshahi and CFO Prashanth Mahendra-Rajah. 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.uber.com. Certain statements in this presentation and on this call are forward-looking statements. You should not place undue reliance on forward-looking statements and actual results may differ materially from these forward-looking statements. We do not undertake any obligation to update any forward-looking statements we make today except as required by law.

Doug Anmuth: Safety track record second none.

Doug Anmuth: Consumers are loving the product often rates are very very healthy.

How does your how do you have to change how the session and change. So we're happy with the result that we saw in terms of the pricing that we were able to deliver to the consumers as we saw the insurance headwinds easily ease a little bit and hopefully we will keep that going there was also kind of a mix shift in terms of trips.

Doug Anmuth: The ratings are healthy the team on the ground is doing a terrific job in terms of.

Doug Anmuth: Repairs and cleaning and recharging the cars et cetera to make sure that the.

Doug Anmuth: <unk> are available for rise and then when the Windows are available for rides. They are very very busy. So we're seeing very high utilization of the vehicles in terms of trips per vehicle per day.

A bit more growth internationally than the U S.

Especially in the travel sector.

That affected overall price mix, so to speak but so far I would say so good in terms of elasticity in terms of AZ in Austin.

Doug Anmuth: As a matter of fact that average wave one often is busier than 99% of Austin drivers as defined by kind of the number of trips per day for Weibo as well so very very encouraging early days.

Austin, we're very very encouraged with what we're seeing obviously way Moe has.

Safety track record second none.

Doug Anmuth: We are going to continue to increase the vehicle counts and Austin and we're super excited for expansion in Atlanta as well as some of the other avion announcements that we've made in the expansion that we see both in the U S and especially outside the U S as well.

Consumers are loving the product often rates are very very healthy.

Balaji Krishnamurthy: 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 Form 10K and in our other filings made with the SEC. We 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. We will open the call to questions following brief opening remarks from Dara. With that, let me hand it over to Dara.

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 Form 10K and in our other filings made with the SEC. We 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. We will open the call to questions following brief opening remarks from Dara. With that, let me hand it over to Dara.

The ratings are healthy.

On the ground is doing a terrific job in terms of.

Repairs and cleaning and recharging the cars et cetera to make sure that the.

Speaker Change: Thank you Dr.

Weibo's are available for rides and then when the Windows are available for rides. They are very very busy. So we're seeing very high utilization of the vehicles in terms of trips per vehicle per day.

Doug Anmuth: You're welcome next question.

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

Eric Sheridan: Thank you so much for taking my question I wanted to know if we could go a little bit deeper on the broader competitive landscape. If you could give us a bit of an update on what youre seeing competitively, especially around either pricing dynamics or incentive supply and demand across both mobility and delivery and if there were any specific geos you wanted to call out from a competitive intensity standpoint. Thank you.

As a matter of fact that average <unk> in Austin is busier than 99% of Boston drivers as defined by kind of the number of trips per day for Weibo as well so very very encouraging early days.

Dara Khosrowshahi: Thanks, Balaji. We're off to a strong start this year. Against the dizzying backdrop of headlines on trade and economic policy, each component of our multi-year growth framework is humming. Our audience grew 14% to 170 million monthly active consumers. Engagement strength continued with trips up 18% and with retention rates hitting all-time highs globally, and gross bookings grew in line with trips fueled by strength across Eats, mobility, and delivery. We see this as robust healthy growth. Growth that's not coming, growth that's coming from engagement and frequency, not just price. We think that's the right way to maximize long-term free cash flow per share. In Q1, we generated record adjusted EBITDA of $1.9 billion, up 35% year-on-year, and free cash flow of $2.3 billion. The Uber team has been in major execution mode.

We are going to continue to increase the vehicle counts and Austin and we're super excited for expansion in Atlanta as well as some of the other announcements that we've made in the expansion that we see both in the U S and especially outside the U S as well.

Dara Khosrowshahi: Yeah, Eric This these markets continue to be very competitive on a global basis in terms of mobility, we have got a strong competitor domestically here and there I think we're more focused on.

Thank you.

You're welcome next question.

Competing with each other on service on quality.

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

Dara Khosrowshahi: Obviously insurance is something that fit both of us as well so I'd say the competitive intensity in the U S is pretty consistent and then internationally of course, we got bolt in Europe, India and Latin America. They are strong competitors, if they continue to focus on expansion.

So much for taking my question I wanted to know if we could go a little bit deeper on the broader competitive landscape. If you could give us a bit of an update on what youre seeing competitively, especially around either pricing dynamics or incentive supply and demand across both mobility and delivery and if there were any specific geos you wanted to call out from a competitive intensity standpoint. Thank you.

Dara Khosrowshahi: As you see by our results. We're the number one player in the vast majority of markets in which we operate and even at a very competitive markets. Our category position continues to be market, leading and then the same in delivery as well obviously the U S market is highly competitive we're seeing terrific growth.

Dara Khosrowshahi: We launched with Waymo in Austin with around 100 cars that are all exceptionally utilized. We announced five AV partnerships with deployments to come in the US, Europe, and the Middle East. We signed a partnership with OpenTable to integrate dining delivery and transportation for our customers. We went live with our Delta SkyMiles partnership, and we announced the acquisition of Trendyol Go to supercharge our future growth in Turkey. That is all just in the last two months. Looking ahead, our Q2 outlook should underscore our expectation to reliably deliver more. The same strong top line growth combined with even stronger profitability growth, setting us well for the seasonally stronger second half of the year. As I said to my team, I feel great about where we stand. We're on solid footing with a clear strategy and ambitions that have never been higher.

We launched with Waymo in Austin with around 100 cars that are all exceptionally utilized. We announced five AV partnerships with deployments to come in the US, Europe, and the Middle East. We signed a partnership with OpenTable to integrate dining delivery and transportation for our customers. We went live with our Delta SkyMiles partnership, and we announced the acquisition of Trendyol Go to supercharge our future growth in Turkey. That is all just in the last two months. Looking ahead, our Q2 outlook should underscore our expectation to reliably deliver more. The same strong top line growth combined with even stronger profitability growth, setting us well for the seasonally stronger second half of the year. As I said to my team, I feel great about where we stand. We're on solid footing with a clear strategy and ambitions that have never been higher.

Yeah, Eric this.

These markets continue to be very competitive on a global basis in terms of mobility, we got a strong competitor domestically here.

Dara Khosrowshahi: Both in terms of top line in terms of margin in terms of our grocery and retail business that accelerated this quarter versus last quarter. And then you are seeing some consolidation in the sector and the food delivery sector.

I think we're more focused on.

Competing with each other on service on quality.

Obviously insurance is something that fit both of us as well so I'd say the competitive intensity in the U S is pretty consistent and then internationally of course, we got bolt in Europe, India and Latin America. There are strong competitors do they continue to focus on expansion.

Dara Khosrowshahi: We were early to the game in terms of growing internationally organically.

Dara Khosrowshahi: We're seeing some consolidation happening inorganic consolidation happening in best to be expected in markets that are as large and as competitive as ours. So I would say no change we.

I think as you see by our results. We're the number one player in the vast majority of markets in which we operate and even at a very competitive market our category position continues to be.

Dara Khosrowshahi: Can't rest for a second.

Dara Khosrowshahi: And because of our global position and because of the unique platform that we have we think we can hold our own and then some of them.

Dara Khosrowshahi: That's why I'm emphasizing that good is not going to be good enough. We need to be great to continue to deliver for the people and cities that we serve, and of course, for all of you. With that, let's get some questions going. Thank you.

Our market, leading and then the same in delivery as well obviously the U S market is highly competitive we are seeing terrific growth.

That's why I'm emphasizing that good is not going to be good enough. We need to be great to continue to deliver for the people and cities that we serve, and of course, for all of you. With that, let's get some questions going. Thank you.

Speaker Change: Great. Thank you.

Speaker Change: Welcome back.

Dara Khosrowshahi: Question.

Both in terms of top line in terms of margin in terms of our grocery and retail business that accelerated this quarter versus last quarter. And then you are seeing some consolidation in the sector and the food delivery sector.

Speaker Change: Your next question comes from the line of Brian Nowak with Morgan Stanley. Please go ahead.

Balaji Krishnamurthy: Operator, we're ready.

Operator, we're ready.

Brian Nowak: Great. Thanks, taking my questions I have two one on Austin and one on U S mobility, just going back to Austin Dara can you sort of walk us through how youre thinking about.

Operator: Thank you. Your first question comes from the line of Doug Anmuth with J.P. Morgan. Please go ahead.

We're early to the game in terms of growing internationally organically.

Dara Khosrowshahi: Thanks for taking questions. I have two. First, just on mobility, as you've worked to keep prices low, curious what kind of elasticity you think you're seeing in terms of the response and how that's showing up in rides? And then on AV, you talked about almost 100 cars in Austin on the way to hundreds. What are you seeing there in terms of utilization of those Waymos relative to some of their other markets?

Doug Anmuth: Thanks for taking questions. I have two. First, just on mobility, as you've worked to keep prices low, curious what kind of elasticity you think you're seeing in terms of the response and how that's showing up in rides? And then on AV, you talked about almost 100 cars in Austin on the way to hundreds. What are you seeing there in terms of utilization of those Waymos relative to some of their other markets?

Brian Nowak: Is it a fleet or an internal timeline or target when Austin way more combined with Austin human drivers could sort of better be match supply demand to drive incremental volumes to Uber overall, when do you think that could happen and then the second one maybe just drilling a little more into <unk>.

We're seeing some consolidation happening inorganic consolidation happening and that's to be expected in markets that are as large and as competitive as ours. So I would say no change we can't rest for a second.

And because of our global position and because of the unique platform that we have we think we can hold our own and then some great.

Brian Nowak: Ability any update on sort of how quickly U S mobility is growing and sort of how the suburbs versus the more urban areas are trending thanks.

Balaji Krishnamurthy: Thanks.

Thanks.

Great. Thank you.

Dara Khosrowshahi: Yeah, absolutely. So Doug, on mobility, the elasticity that we're seeing is similar to the past. You know, usually for dollar of increase in terms of price, transactions are negatively affected. Now there's short term elasticity and long term elasticity. There's elasticity that you see in session. And then we think there's longer term elasticity which is as you tend to kind of get used to prices not increasing as much as they were in the past couple of years. How does your, how do your habits change? How does sessioning change? So we're happy with the results that we saw in terms of the pricing that we were able to deliver to the consumers as we saw the insurance headwinds ease a little bit, and hopefully we'll keep that going.

Welcome.

Question.

Brian Nowak: Yes, Brian in terms of Austin.

Your next question comes from the line of Brian Nowak with Morgan Stanley. Please go ahead.

Speaker Change: We're really focused on making sure that the experience every single day is an excellent experience, we're absolutely growing the fleets, it's going to be.

Great. Thanks, taking my questions I have two one on Austin and one on U S mobility, just going back to Austin Dara can you sort of walk us through how youre thinking about.

Speaker Change: Over 100 vehicles soon based on the trends that we're seeing and really the focus is on keeping the utilization of the vehicles at the high levels that we're seeing and making sure that safety and customer experience.

Is it a fleet or an internal timeline or target when Austin way Moe combined with Austin human drivers.

Better be match supply demand to drive incremental volumes to Uber overall.

Speaker Change: Arent compromised in any way at this point, we're not really a goal and often isn't necessarily for incremental trips one way or the other it's just to make sure that every single ride is the perfect right.

When do you think that could happen and then the second one maybe just kind of drilling a little more into U S mobility any update on sort of how quickly U S mobility is growing and sort of how the suburbs versus the more urban areas are trending.

Speaker Change: We see over the long term.

Dara Khosrowshahi: There was also kind of a mix shift in terms of trips, a bit more growth internationally than the US, especially in the travel sector that affected overall price mix, so to speak. But so far I'd say so good in terms of elasticity in terms of as in Austin; we're very, very encouraged with what we're seeing. Obviously, Waymo has a safety track record second to none. Consumers are loving the product. Often rates are very, very healthy, and the ratings are healthy. The team on the ground is doing a terrific job in terms of repairs, cleaning, and recharging the cars, et cetera, to make sure that the Waymos are available for rides. And then when the Waymos are available for rides, they are very, very busy. So we're seeing very high utilization of the vehicles in terms of trips per vehicle per day.

There was also kind of a mix shift in terms of trips, a bit more growth internationally than the US, especially in the travel sector that affected overall price mix, so to speak. But so far I'd say so good in terms of elasticity in terms of as in Austin; we're very, very encouraged with what we're seeing. Obviously, Waymo has a safety track record second to none. Consumers are loving the product. Often rates are very, very healthy, and the ratings are healthy. The team on the ground is doing a terrific job in terms of repairs, cleaning, and recharging the cars, et cetera, to make sure that the Waymos are available for rides. And then when the Waymos are available for rides, they are very, very busy. So we're seeing very high utilization of the vehicles in terms of trips per vehicle per day.

Yes, Brian in terms of Austin.

Speaker Change: If we provide a service that is highly reliable.

We're really focused on making sure that the experience every single day is an excellent experience, we're absolutely growing the fleets, it's going to be.

Speaker Change: Where the every single trip is exceptional prices are reasonable Etfs are predictable then over a period of time the business grows.

Over 100 vehicles soon based on the trends that we're seeing and really the focus is on keeping the utilization of the vehicles at the high levels that we're seeing and making sure that safety and customer experience.

Speaker Change: We are able to gain category position and we've seen more consumers kind of coming onto her onto our platform. The fact is that <unk>.

Speaker Change: And 20% of adults 18, plus.

Speaker Change: <unk> seen it over user platform on a regular basis. So we think theres plenty of room for growth.

Arent compromised in any way.

This point, we're not really a goal and often isn't necessarily for incremental trips one way or the other it's just to make sure that every single ride is the perfect right. What we see over the long term is if we provide a service that is highly reliable.

Focus right now is kind of day to day, making sure we get it right and making sure that the streets of Austin are safe.

Brian Christian: The second question, Yes, Brian Christian I'll take that I'll take the second part.

Brian Christian: It was on our mobility growth.

Speaker Change: So maybe.

Speaker Change: <unk> set some context for the for the last couple of quarters I think three quarters now we've had about 19% year over year trip growth.

Where the every single trip is exceptional prices are reasonable Etfs are predictable then over a period of time the business grows.

Dara Khosrowshahi: As a matter of fact, the average Waymo in Austin is busier than 99% of Austin drivers, is defined by kind of the number of trips per day per Waymo as well. So very, very encouraging early days. We are going to continue to increase the vehicle count in Austin, and we're super excited for expansion in Atlanta as well as some of the other AV announcements that we've made and the expansion that we see both in the US and especially outside the US as well. Thank you, Dara. You're welcome. Next question.

As a matter of fact, the average Waymo in Austin is busier than 99% of Austin drivers, is defined by kind of the number of trips per day per Waymo as well. So very, very encouraging early days. We are going to continue to increase the vehicle count in Austin, and we're super excited for expansion in Atlanta as well as some of the other AV announcements that we've made and the expansion that we see both in the US and especially outside the US as well.

Speaker Change: So very strong growth and as we look at what we've incorporated into the guide we're thinking that it should be around the same and that we are fortunate is still very heavily led by audience growth.

We are able to gain category position and we've seen more consumers kind of coming onto her onto our platform, but fact is that.

Less than 20% of.

Speaker Change: When we look at that conversion from trip growth to GB growth, we are starting to see the gap between trips and and growth bookings narrow a bit because we've been able to pass along.

<unk> 18, plus.

18, it over user platform on a regular basis. So we think there's plenty of room for growth. So the focus right now is kind of day to day, making sure we get it right and making sure that the streets of Boston are safe.

Speaker Change: Lower insurance costs.

Doug Anmuth: Thank you, Dara.

The second question, Yes, Brian Christian I'll take the I'll take the second part.

Speaker Change: Early here in the U S.

Dara Khosrowshahi: You're welcome. Next question.

Speaker Change: Remember, we indicated that in the latter part of.

It was on our mobility growth.

Speaker Change: The year.

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

So maybe.

from Surprise, Transactions are negatively affected. [inaudible]

Speaker Change: That we would expect a better insurance costs in here and that's exactly how it's turning out.

Set some context for the for the last couple of quarters I think three quarters now we've had about 19% year over year trip growth.

Now there's short-term elasticity and long-term elasticity. [inaudible]

Dara Khosrowshahi: Thank you so much for taking the question. I want to know if we could go a little bit deeper on the broader competitive landscape. If you could give us a bit of an update on what you're seeing competitively, especially around either pricing dynamics or incentive supply and demand across both mobility and delivery. And if there were any specific geos you wanted to call out from a competitive intensity standpoint. Yes, Eric. These markets continue to be very competitive on a global basis. In terms of mobility, we've got a strong competitor domestically here in Lyft. I think we're more focused on competing with each other on service, on quality. Obviously, insurance is something that's hit both of us as well. So I'd say the competitive intensity in the US is pretty consistent. And then internationally, of course, we got both in Europe and DiDi in Latin America.

Eric Sheridan: Thank you so much for taking the question. I want to know if we could go a little bit deeper on the broader competitive landscape. If you could give us a bit of an update on what you're seeing competitively, especially around either pricing dynamics or incentive supply and demand across both mobility and delivery. And if there were any specific geos you wanted to call out from a competitive intensity standpoint.

Speaker Change: The other item that that Dara made mention of earlier in one of his answers.

There's a lot of things that you see in session.

and then we think there's long return of the city, which is...

So very strong growth and as we look at what we've incorporated into the guide we're thinking that it should be around the same and that we're fortunate is still very heavily led by audience growth.

Speaker Change: Are seeing a slightly higher mix of international trips.

Speaker Change: And thats a bit due to that lower inbound U S travel.

Speaker Change: Which comes with lower gross bookings per trip, but despite sort of the this mix shift youll notice that we were able to print all time high margins for.

When we look at that conversion from trip growth to GB growth, we are starting to see the gap between trips and and gross bookings narrow a bit because we've been able to pass along.

Dara Khosrowshahi: Yes, Eric. These markets continue to be very competitive on a global basis. In terms of mobility, we've got a strong competitor domestically here in Lyft. I think we're more focused on competing with each other on service, on quality. Obviously, insurance is something that's hit both of us as well. So I'd say the competitive intensity in the US is pretty consistent. And then internationally, of course, we got both in Europe and DiDi in Latin America.

Speaker Change: For the for the quarter. So we're able to really continue to pass those insurance costs through there is no economic impact of that to our shareholders and we're able to put the margins in <unk>.

Lower insurance cost primarily here in the U S.

Remember, we indicated that in the latter part of.

Speaker Change: To show that sort of margin accretion story.

Speaker Change: And then lastly, I think you asked a bit about growth in the suburbs versus the urban.

The year.

That said that we would expect a better insurance costs from here and that's exactly how it's turning out.

Speaker Change: A metric that we're now able to share is that sparks are markets, which are growing at a faster rate than our core.

The other item that Ted that Dara made mention of earlier in one of his answers.

Dara Khosrowshahi: They're strong competitors. They continue to focus on expansion. I think as you see by our results, we're the number one player in the vast majority of markets in which we operate. Even in a very competitive market, our category position continues to be market leading, and then the same in delivery as well. Obviously, the US market is highly competitive. We're seeing terrific growth both in terms of top line, in terms of margin, and in terms of our grocery and retail business that accelerated this quarter versus last quarter. Then you're seeing some consolidation in the sector, in the food delivery sector. You know, we were early to the game in terms of growing internationally organically. We're seeing some consolidation happening, inorganic consolidation happening, and that's to be expected in markets that are as large and as competitive as ours.

They're strong competitors. They continue to focus on expansion. I think as you see by our results, we're the number one player in the vast majority of markets in which we operate. Even in a very competitive market, our category position continues to be market leading, and then the same in delivery as well. Obviously, the US market is highly competitive. We're seeing terrific growth both in terms of top line, in terms of margin, and in terms of our grocery and retail business that accelerated this quarter versus last quarter. Then you're seeing some consolidation in the sector, in the food delivery sector. You know, we were early to the game in terms of growing internationally organically. We're seeing some consolidation happening, inorganic consolidation happening, and that's to be expected in markets that are as large and as competitive as ours.

Are seeing a slightly higher mix of international trips.

Speaker Change: <unk> represent about 20% on a trip basis.

And thats a bit due to that lower inbound U S travel.

Speaker Change: Or for mobility, so we're continuing to see great growth in those spot markets, because it's growing faster, but it's also a sizable percentage of the overall mobility volume.

Which comes with lower gross bookings per trip, but despite sort of the this mix shift youll notice that we were able to print all time high margins for.

Speaker Change: Great. Thank you both the next question operator.

For the for the quarter. So we're able to really continue to pass those insurance costs through there is no economic impact of that to our shareholders and we're able to put the margins in <unk>.

Speaker Change: Your next question comes from the line of Ross Sandler with Barclays. Please go ahead.

Speaker Change: Great.

Continue to show that sort of margin accretion story.

Speaker Change: On the delivery.

Speaker Change: Margin in a call out you guys made in the prepared remarks, you said that restaurant delivery has profit margins.

And then lastly, I think you asked a bit about growth in the suburbs versus the urban.

A metric that we're now able to share is that sparser markets, which are growing at a faster rate than our core.

Speaker Change: Modestly lower than Uber X profit margin so.

Speaker Change: That's an interesting nuggets in itself.

<unk> represent about 20% on a trip basis.

Speaker Change: I guess the question is.

Speaker Change: Looking at that.

For for mobility, So we're continuing to see.

Dara Khosrowshahi: So I say no change. We can't rest for a second. And because of our global position and because of the unique platform that we have, we think we can hold our own and ramp up. Great, thank you. You're welcome. Next question.

So I say no change. We can't rest for a second. And because of our global position and because of the unique platform that we have, we think we can hold our own and ramp up.

Speaker Change: What does it say about the cadence of margin expansion and.

Rate growth in those partial markets, because it's growing faster, but it's also a sizable percentage of the overall mobility volume.

Speaker Change: Grocery and retail I think you also said did that part.

Speaker Change: Is that a 2018 kind of equivalent maturity.

Great. Thank you both the next question operator.

Eric Sheridan: Great, thank you.

Dara Khosrowshahi: You're welcome. Next question.

Ross Sandler: Your next question comes from the line of Ross Sandler with Barclays. Please go ahead.

Speaker Change: And then how much of the restaurant margin.

Operator: Your next question comes from the line of Brian Nowak with Morgan Stanley. Please go ahead.

Speaker Change: Being way up there is because of advertising just because of the time in market.

Great.

Ross Sandler: On the delivery.

Dara Khosrowshahi: Great. Thanks for taking my questions. I have two. One on Austin and one on US Mobility. Just going back to Austin. Dara, can you sort of walk us through how you're thinking about a size of a fleet or an internal timeline or target when Austin Waymo combined with Austin human drivers could sort of better match supply demand to drive incremental volumes to Uber overall. When do you think that could happen? Then the second one maybe just kind of drilling a little more into US Mobility. Any update on sort of how quickly US Mobility is growing and sort of how the suburbs versus the more urban areas trending?

Brian Nowak: Great. Thanks for taking my questions. I have two. One on Austin and one on US Mobility. Just going back to Austin. Dara, can you sort of walk us through how you're thinking about a size of a fleet or an internal timeline or target when Austin Waymo combined with Austin human drivers could sort of better match supply demand to drive incremental volumes to Uber overall. When do you think that could happen? Then the second one maybe just kind of drilling a little more into US Mobility. Any update on sort of how quickly US Mobility is growing and sort of how the suburbs versus the more urban areas trending?Thanks.

Ross Sandler: Margin in a call out you guys made in the prepared remarks, you said that restaurant delivery as profit margins that are modestly lower than Uber X profit margin. So.

Speaker Change: The usual kind of retention cadence et cetera, any thoughts on that.

Speaker Change: Sure. Thank you <unk> I'll go ahead and take that.

Speaker Change: So bill delivery has been a pretty incredible proppant story for us. If you can look at the results for the quarter delivery margins are at a three 7% of GBS, that's up 70 bps versus.

Ross Sandler: Lots of interesting Nuggets in itself.

Ross Sandler: I guess the question is.

Ross Sandler: Looking at that.

Ross Sandler: What does that say about the cadence of margin expansion at.

Speaker Change: It was just a year ago very strong expansion now that margin expansion is primarily being driven by advertising and the leverage we're getting just from the scale. The opex leverage that we get from scale and thats been fairly consistent driver of what's been behind the margin expansion over the last couple of quarters.

Speaker Change: Grocery and retail I think you also said did that part.

Speaker Change: Is that a 2018 kind of equivalent maturity.

Speaker Change: And then how much of the restaurant margin.

Operator: Thanks.

Dara Khosrowshahi: Yeah, Brian, in terms of Austin, you know, we're really focused on making sure that the experience every single day is an excellent experience. We're absolutely growing the fleets. It's going to be over 100 vehicles soon based on the trends that we're seeing. And really the focus is on keeping the utilization of the vehicles at the high levels that we're seeing and making sure that safety and customer experience aren't compromised in any way. At this point, we're not really a goal, and often isn't necessarily for incremental trips one way or the other. It's just to make sure that every single ride is the perfect ride.

Speaker Change: Being way up there is because of advertising just because of the time in market.

Speaker Change: The.

Speaker Change: Item that I'd, probably highlight there is that the.

Speaker Change: The usual kind of retention cadence et cetera, any thoughts on that.

Speaker Change: Our cost per trip.

Speaker Change: Sure. Thank you Ross for Sean I'll go ahead and take that.

Speaker Change: <unk> continues to show great improvement that's the benefit of the scale, we have declining declined both quarter over quarter and year over year.

Speaker Change: So delivery has been a pretty incredible profit story for us. If you look at the results for the quarter delivery margins are at a three 7% of GBS, that's up 70 bps versus.

Speaker Change: In the delivery profitability numbers that includes our grocery and retail which you made reference to remember that we said in Q4 of last year grocery and retail hit breakeven for variable contribution in Q1, it's now starting to accrete at variable contribution levels, so that deliver that grocery and retail businesses.

Dara Khosrowshahi: What we see over the long term is if we provide a service that is highly reliable, where every single trip is exceptional, prices are reasonable, ETAs are predictable, then over a period of time, the business grows and we are able to gain category position and we see more consumers kind of coming onto our platform. The fact is that, you know, less than 20% of adults 18 and over use our platform on a regular basis. So we think there's plenty of room for growth. So the focus right now is kind of day to day making sure we get it right and making sure that the streets of Austin are safe. Wanna talk to the second question?

What we see over the long term is if we provide a service that is highly reliable, where every single trip is exceptional, prices are reasonable, ETAs are predictable, then over a period of time, the business grows and we are able to gain category position and we see more consumers kind of coming onto our platform. The fact is that, you know, less than 20% of adults 18 and over use our platform on a regular basis. So we think there's plenty of room for growth. So the focus right now is kind of day to day making sure we get it right and making sure that the streets of Austin are safe. Wanna talk to the second question?

Speaker Change: <unk> has great upside and it's going to continue to grow both as a result of advertising, but also as we continue to improve selection.

Speaker Change: The.

Speaker Change: Item that I'd, probably highlight there is that the the.

Speaker Change: I will call out one item that may not be notable to everyone as incremental margin for delivery in Q1 were 9% so.

Speaker Change: Our cost per trip.

Speaker Change: <unk> to show Great improvement, that's the benefit of the scale, we have declining it's declined both quarter over quarter and year over year.

Speaker Change: With that very strong top line growth, it's a reflection of what just the earnings power of this business can be with continuing to see that.

In the delivery profitability numbers that includes our grocery and retail, which which you made reference to remember that we said in Q4 of last year grocery and retail hit breakeven for variable contribution in Q1, it's now starting to accrete at variable contribution level, so that deliver that grocery and retail business.

Speaker Change: Opportunity to drive margin expansion.

Speaker Change: <unk> said that as we've said consistently in our calls we need to always find the balance between growing profitability and growing the topline. So I don't want to overcommit to a b.

Speaker Change: <unk> has great upside in it.

Prashanth Mahendra-Rajah: Yeah, Brian, it's Christian. I'll take the second part, and that it was on mobility growth. So maybe let's set some context. For the last couple quarters, I think three quarters now, we've had about 19% year-over-year trip growth. So very strong trip growth. And as we look at what we've incorporated into the guide, we're thinking, thinking that it should be around the same, and that we're fortunate it's still very heavily led by audience growth. When we look at that conversion from trip growth to GB growth, we are starting to see the gap between trips and gross bookings narrow a bit because we've been able to pass along lower insurance costs, primarily here in the US. You might remember, we indicated that in the latter part of the year that we would expect better insurance costs in this year.

Prashanth Mahendra-Rajah: Yeah, Brian, it's Prashanth. I'll take the second part, and that it was on mobility growth. So maybe let's set some context. For the last couple quarters, I think three quarters now, we've had about 19% year-over-year trip growth. So very strong trip growth. And as we look at what we've incorporated into the guide, we're thinking, thinking that it should be around the same, and that we're fortunate it's still very heavily led by audience growth. When we look at that conversion from trip growth to GB growth, we are starting to see the gap between trips and gross bookings narrow a bit because we've been able to pass along lower insurance costs, primarily here in the US. You might remember, we indicated that in the latter part of the year that we would expect better insurance costs in this year.

Speaker Change: The growth in delivery profitability, we're looking for steady margin expansion. So we can continue to invest in growing the topline of the business given that we have so many opportunities to invest in.

Speaker Change: Continue to grow both.

Speaker Change: As a result of advertising, but also as we continue to improve selection.

Speaker Change: I will call out one item that may not be notable to everyone as incremental margin for delivery in Q1 were 9% so.

Speaker Change: Next question please.

Speaker Change: Your next question comes from the line of Mark Mahaney with Evercore. Please go ahead.

Speaker Change: With that very strong top line growth, it's a reflection of what's the earnings power of this business can be with continuing to see that.

Mark Mahaney: Okay. Thanks, I'll try to first just on the insurance headwinds do you feel like that's mostly behind you now just talk about where you think ongoing leverage against insurance costs are and is that something thats kind of a structural to the industry or are those.

Speaker Change: Opportunity to drive margin expansion having.

Speaker Change: Having said that as we've said consistently in our calls we need to always find the balance between growing profitability and growing the top line. So I don't want to Overcommit to.

Speaker Change: Kind of work.

Speaker Change: Workarounds or improvements that <unk> been able to do and then.

Dara Khosrowshahi: Dara in terms of Avi partners and you've got a pretty good view on all the different offerings that are out there <unk> is doing a fantastic job who do you think is coming what are you thinking in the marketplace is closest to weigh MAU now in terms of having the ability to rollout at a decent scale a true.

Prashanth Mahendra-Rajah: That's exactly how it's turning out. The other item that Dara made mention of earlier in one of his answers is we are seeing a slightly higher mix of international trips, and that's a bit due to that lower inbound US travel which comes with lower gross bookings per trip. But despite sort of this mix shift, you'll notice that we were able to print all-time high margins for the quarter. So we're able to really continue to pass those insurance costs through. There's no economic impact of that to our shareholders, and we're able to put the margins and continue to show that sort of margin accretion story. Then lastly, I think you asked a bit about growth in the suburbs versus the urbans.

That's exactly how it's turning out. The other item that Dara made mention of earlier in one of his answers is we are seeing a slightly higher mix of international trips, and that's a bit due to that lower inbound US travel which comes with lower gross bookings per trip. But despite sort of this mix shift, you'll notice that we were able to print all-time high margins for the quarter. So we're able to really continue to pass those insurance costs through. There's no economic impact of that to our shareholders, and we're able to put the margins and continue to show that sort of margin accretion story. Then lastly, I think you asked a bit about growth in the suburbs versus the urbans.

Speaker Change: Next question please.

Speaker Change: Your next question comes from the line of Mark Mahaney with Evercore. Please go ahead.

Speaker Change: Experience. Thanks.

Speaker Change: Sorry, why don't we take.

Speaker Change: The <unk> one first and then I'll close with insurance, Yes, sure markets, it's hard to tell exactly who has what capability because.

Okay. Thanks, I'll try to first just on the insurance headwinds do you feel like that's mostly behind you now just talk about where you think ongoing leverage against insurance costs are and is that something thats kind of structural to the industry or are those.

Speaker Change: He is.

Speaker Change: Is still very very early in terms of development I will tell you that listen in China, you have Avi product.

Speaker Change: Kind of work.

Speaker Change: Workarounds or improvements that you've been able to do and then.

Speaker Change: That is.

Speaker Change: Is in market today.

Speaker Change: Dara in terms of <unk> partners and <unk>.

Speaker Change: <unk>, who is a partner in op Adobe.

Speaker Change: <unk> got a pretty good view on all the different offerings that are out there raimo is doing a fantastic job who do you think is coming what do you think in the marketplace is closest to weigh MAU now in terms of having the ability to roll out at a decent scale a true.

Speaker Change: And Dubai and expanding of 15 countries Pony, whom we expect to introduce the middle East from Tom and Baidu as well.

Speaker Change: They have essentially.

Prashanth Mahendra-Rajah: A metric that we're now able to share is that sparser markets, which are growing at a faster rate than our core, represent about 20% on a trip basis for mobility. We're continuing to see great growth in those sparse markets because it's growing faster, but it's also a sizable percentage of the overall mobility volume.

A metric that we're now able to share is that sparser markets, which are growing at a faster rate than our core, represent about 20% on a trip basis for mobility. We're continuing to see great growth in those sparse markets because it's growing faster, but it's also a sizable percentage of the overall mobility volume.

Speaker Change: Running in Chinese cities right now.

Speaker Change: Avi experience. Thanks.

Speaker Change: <unk> challenging traffics conditions and conditions generally.

Speaker Change: Sorry, why don't you take the <unk>, one first and then I'll close with insurance, yes, sure market, it's hard to tell exactly who has what capability because AAV is.

Speaker Change: And then there are a lot of other players that are showing incredible promise as well.

Speaker Change: We announced a partnership with my mobility <unk>.

Speaker Change: Is still very very early in terms of development I would tell you that listen in China, you have a product that.

Speaker Change: Thank you.

Speaker Change: With momentum as well, where we expect to see an AB development deployment in Europe as well.

Dara Khosrowshahi: Great.

Brian Nowak: Great. Thank you both.

Operator: Thank you both. Your next question comes from the line of Ross Sandler with Barclays. Please go ahead.

Operator: Your next question comes from the line of Ross Sandler with Barclays. Please go ahead.

Speaker Change: That.

Speaker Change: Right. So this is this is a technology that has been proven weibo was definitely the leader there, but there are many other players investing in the space and we expect to see.

Speaker Change: Is in market today.

Speaker Change: We ride who is a partner in op Adobe.

Prashanth Mahendra-Rajah: Great.

Dara Khosrowshahi: Just question on the delivery margin and a call out you guys made in the prepared remarks. So you said that restaurant delivery has profit margins that are modestly lower than UberX profit margin. So that's an interesting nugget in itself.

Ross Sandler: Just question on the delivery margin and a call out you guys made in the prepared remarks. So you said that restaurant delivery has profit margins that are modestly lower than UberX profit margin. So that's an interesting nugget in itself.

Speaker Change: And Dubai and expanding of 15 countries Pony, whom we expect to introduce the middle east from harm and Baidu as well these they have essentially.

Speaker Change: A number of successful companies in this space.

Speaker Change: Partnering with us.

Mark Mahaney: Yes, so mark I mean on the insurance question. If you remember in Q4 of last year, we indicated that.

Speaker Change: Running in Chinese cities right now.

Speaker Change: <unk> challenging traffic conditions and conditions generally and.

Mark Mahaney: For 2025, we thought insurance increases would moderate and more likely be in the high single, perhaps low teens area and we actually overestimated at CPI print for March was coming in at 7% year over year and that's the lowest we've seen in almost three years so as we.

Prashanth Mahendra-Rajah: I guess the question is looking at.

I guess the question is looking at. That, what does that say about the cadence of margin expansion at grocery and retail? I think you also said that that part is at a 2018 kind of equivalent maturity. And then how much of the restaurant margin being way up there is because of advertising, just because of time, market, and the usual kind of retention cadence, etc. Any thoughts on that?

Speaker Change: Then there are a lot of other players that are showing incredible promise as well.

Dara Khosrowshahi: That, what does that say about the cadence of margin expansion at grocery and retail? I think you also said that that part is at a 2018 kind of equivalent maturity. And then how much of the restaurant margin being way up there is because of advertising, just because of time, market, and the usual kind of retention cadence, etc. Any thoughts on that? Sure.

Speaker Change: We announced a partnership with my mobility VW.

Speaker Change: VW.

Speaker Change: With momentum as well, where we expect to see an AB development deployment in Europe as well.

Mark Mahaney: Think about our U S mobility insurance cost expectations for the balance of the year, we're thinking that it will continue to be a very modest headwind of high single digits.

Speaker Change: Right. So this is this is a technology that has been proven weibo was definitely the leader there, but there are many other players investing in the space and we expect to see.

Speaker Change: A number of successful companies in our space.

Mark Mahaney: 2025, and that is meaningfully lower than we've seen in the last two years and certainly given the rate of growth for the U S mobility business, that's going to create some leverage for us, but as I said in my prior response, he intend to pass those those opportunities.

Prashanth Mahendra-Rajah: Thank you, Ross. It's Prashanth. I'll go ahead and take that. So delivery has been a pretty incredible profit story for us. If you look at the results for the quarter, delivery margins are at 3.7% of GBS. That's up 70 basis points versus where it was just a year ago, very strong expansion. Now that margin expansion is primarily being driven by advertising and the leverage we're getting just from the scale, the OPEX leverage that we get from scale, and that's been a fairly consistent driver of what's been behind the margin expansion over the last couple quarters. The item that I'd probably highlight there is that our cost per trip continues to show great improvement. That's the benefit of the scale we have declining. It's declined both quarter over quarter and year over year in the delivery profitability numbers.

Prashanth Mahendra-Rajah: Sure. Thank you, Ross. It's Prashanth. I'll go ahead and take that. So delivery has been a pretty incredible profit story for us. If you look at the results for the quarter, delivery margins are at 3.7% of GBS. That's up 70 basis points versus where it was just a year ago, very strong expansion. Now that margin expansion is primarily being driven by advertising and the leverage we're getting just from the scale, the OPEX leverage that we get from scale, and that's been a fairly consistent driver of what's been behind the margin expansion over the last couple quarters. The item that I'd probably highlight there is that our cost per trip continues to show great improvement. That's the benefit of the scale we have declining. It's declined both quarter over quarter and year over year in the delivery profitability numbers.

Speaker Change: Hopefully partnering with us.

Speaker Change: Yes.

Speaker Change: Mark on the on the insurance question. If you remember in Q4 of last year, we indicated that.

Speaker Change: For 2025, we thought insurance increases would moderate and more likely be in the high single, perhaps low teens area and we actually overestimated at CPI print or March was coming in at 7% year over year and that's the lowest we've seen in almost three years, so as we <unk>.

To consumers.

Mark Mahaney: We are getting some incremental strength from the from the great efforts of our team are in a few areas first on safety Tech some great innovation that we're driving in this space, including giving our drivers insight into how their driving behavior.

Speaker Change: Think about our U S mobility insurance cost expectations for the balance of the year, we're thinking that it will continue to be.

Mark Mahaney: Is being scored and that is now live in all U S markets and drivers are responding very favorably to being able to understand their.

Speaker Change: Very modest headwind of high single digits.

Speaker Change: 2025, and that is meaningfully lower than we've seen in the last two years and certainly given the rate of growth for the U S mobility business, that's going to create some leverage for us, but as I said in my prior response, he intend to pass those those opportunities too.

Mark Mahaney: Their actions like speeding heartbreaking acceleration et cetera. So that's that's one element that we've now deployed across the U S.

Mark Mahaney: On the policy side, which has also been an area that we've been talking about for a while we're getting some great momentum there.

Prashanth Mahendra-Rajah: That includes our grocery and retail, which you made reference to. Remember that we said in Q4 of last year grocery and retail hit breakeven for variable contribution and in Q1 it's now starting to accrete at variable contribution levels. So that grocery and retail business has great upside and it's going to continue to grow, both as a result of advertising, but also as we continue to improve selection. I will call out one item that may not be notable to everyone: incremental margins for delivery. In Q1 we're 9%. So with that very strong top line growth, it's a reflection of what just the earnings power of this business can be with continuing to see that opportunity to drive margin expansion. Having said that, as we've said consistently in our calls, we need to always find the balance between growing profitability and growing the top line.

That includes our grocery and retail, which you made reference to. Remember that we said in Q4 of last year grocery and retail hit breakeven for variable contribution and in Q1 it's now starting to accrete at variable contribution levels. So that grocery and retail business has great upside and it's going to continue to grow, both as a result of advertising, but also as we continue to improve selection. I will call out one item that may not be notable to everyone: incremental margins for delivery. In Q1 we're 9%. So with that very strong top line growth, it's a reflection of what just the earnings power of this business can be with continuing to see that opportunity to drive margin expansion. Having said that, as we've said consistently in our calls, we need to always find the balance between growing profitability and growing the top line.

Speaker Change: Consumers now, where we are getting some incremental strength from the from the great efforts of our team are in a few areas first on safety techs and great innovation.

Mark Mahaney: For example in just in the first quarter, a tort reform Bill is in Georgia awaiting the Governor's signature.

Mark Mahaney: If we get through that that's going to be a meaningful step to combat some of the legal system abuse and is going to help us continue to drive down insurance cost overtime and we have other built in other states like Nevada, and Texas and continue to have some good discussions in other areas. So overall I think that that the <unk>.

Speaker Change: We are driving in this space, including giving our drivers insight into how their driving behavior is being scored and that is now live in all U S markets and drivers are responding very favorably to being able to understand there.

Mark Mahaney: <unk> that we are spending on insurance, both because we have a captive that allows us to create tension on pricing. We have an organization of engineers, it's really working on finding new technologies and the efforts that we're doing on the policy side are going to continue to make this a more favorable situation for us than it has been over the past.

Speaker Change: Actions like speeding heartbreaking acceleration et cetera. So that's that's one element that we've now deployed across the U S.

Speaker Change: On the policy side, which has also been an area that we've been talking about for a while we're getting some great momentum there.

Speaker Change: Example, in just in this first quarter, a tort reform Bill.

Mark Mahaney: Couple of years and Margaret just stress on the policy ankle U S drivers are not less safe than drivers internationally. The cost of insurance that has to be paid on to consumers outside of the U S is de minimis compared to the U S. So this is just this is a huge part of the inflate.

Speaker Change: Is in Georgia awaiting the Governor's signature.

Speaker Change: We get through that that's going to be a meaningful step to combat some of the legal system abuse and is going to help us continue to drive down insurance cost over time, and we have other bills.

Prashanth Mahendra-Rajah: So I don't want to over commit to the growth in delivery profitability. We're looking for steady margin expansion so we can continue to invest in growing the top line of the business, given that we have so many opportunities to invest in.

So I don't want to over commit to the growth in delivery profitability. We're looking for steady margin expansion so we can continue to invest in growing the top line of the business, given that we have so many opportunities to invest in.

Speaker Change: In other states like Nevada, and Texas and continue to have some good discussions in other areas. So overall I think that the energy that we're spending on insurance both because we have a captive that allows us to create tension on pricing.

Mark Mahaney: <unk> that consumers are experiencing we're hoping that local policymakers and.

Balaji Krishnamurthy: Next question, please.

Dara Khosrowshahi: Next question, please.

Mark Mahaney: The administration in place.

Operator: Your next question comes from the line of Mark Mahaney with Evercore. Please go ahead.

Mark Mahaney: Want to fight inflation.

Speaker Change: We have an organization of engineers, it's really working on finding new technologies and the efforts that we're doing on the policy side are going to continue to make this a more favorable situation for us than it has been over the past couple of years and Margaret just stress on the policy angle.

Mark Mahaney: As much as we do because really disinflation is caused by abuse of the legal system. It's entirely unnecessary and we're hoping that policymakers can work with us to bring prices down for consumers and more of the fares going into the driver's pockets.

Dara Khosrowshahi: Okay, thanks. I'll try to. First, just on the insurance headwinds, do you feel like that's mostly behind you now? Just talk about where you think ongoing leverage against insurance costs are and is that something that's kind of structural to the industry or are those things, you know, kind of workarounds or improvements that you've been able to do? And then Dara, in terms of AV partners and you know, you've got a pretty good view on all the different offerings that are out there. Waymo's doing a fantastic job. Who do you think is coming? Who do you think in the marketplace is closest to Waymo now in terms of having the ability to roll out at, you know, a decent scale? A true AV experience. Thanks, Dara.

Mark Mahaney: Okay, thanks. I'll try to. First, just on the insurance headwinds, do you feel like that's mostly behind you now? Just talk about where you think ongoing leverage against insurance costs are and is that something that's kind of structural to the industry or are those things, you know, kind of workarounds or improvements that you've been able to do? And then Dara, in terms of AV partners and you know, you've got a pretty good view on all the different offerings that are out there. Waymo's doing a fantastic job. Who do you think is coming? Who do you think in the marketplace is closest to Waymo now in terms of having the ability to roll out at, you know, a decent scale? A true AV experience. Thanks, Dara.

Mark Mahaney: We really think is a win win.

Speaker Change: U S drivers are not.

Mark Mahaney: Okay. Thank you very much thank you Youre welcome.

Speaker Change: Less safe than drivers internationally, the cost of insurance that has to be paid on to consumers outside of the U S is de minimis compared to the U S. So this is just it's a huge part of the inflation that consumers are experiencing.

Speaker Change: Your next question comes from the line of Justin Post with Bank of America. Please go ahead great.

Speaker Change: Just one question on the macro you mentioned, maybe slower airport trips, but any impact on mobility rides or pricing or delivery.

Speaker Change: Hoping that local policymakers and.

Speaker Change: Lower <unk> or anything like that on the macro or contemplated going forward and then can you give us an update on competition.

Speaker Change: The administration in place.

Speaker Change: Want to fight inflation.

Prashanth Mahendra-Rajah: Why don't you take the Waymo one first, and then I'll close with insurance.

Speaker Change: As much as we do because really disinflation is caused by abuse of the legal system. It's entirely unnecessary and we're hoping that policymakers can work with us to bring prices down for consumers and more of the fares going into the driver's pockets.

Speaker Change: Bay area, and San Francisco Bay area and L. A.

Dara Khosrowshahi: Yeah, sure, Mark. It's hard to tell exactly who has what capability because AV is still very, very early in terms of development. I tell you that. Listen, in China you have AV product that is in market today from WeRide, who's a partner in Abu Dhabi and Dubai and expanding in 15 countries. Pony, whom we expect to introduce to the Middle East sometime, and Baidu as well. These, they have essentially AVs running in Chinese cities right now, very challenging traffic conditions and conditions generally. And then there are a lot of other players that are showing incredible promise as well. You know, we announced a partnership with May Mobility, with VW, with Momenta as well, where we expect to see an AV development deployment in Europe as well and Avride. So this is a technology that has been proven.

Speaker Change: I know those are areas, where windows operating just any update on the competition there. Thank you.

Speaker Change: Yeah, absolutely. So in terms of macro just that we're watching it pretty closely we don't see any signals that that I'd describe a significant audience growth is very consistent with last quarter up 14% frequency is consistent as well.

Speaker Change: We really think is a win win.

Speaker Change: Okay. Thank you very much thank you Youre welcome.

Justin Post: Your next question comes from the line of Justin Post with Bank of America. Please go ahead great.

Justin Post: Thanks, Josh.

Speaker Change: We are looking to modulate price increases and you saw that in our results as well, but we're not seeing like basket sizes continue to increase so I think that would be a leading indicator to the extent that there was macro uncertainty we are not seeing trade downs in terms of the <unk>.

Justin Post: On the macro you mentioned, maybe slower airport trips, but any impact on mobility rides or pricing or delivery.

Justin Post: Lower <unk> or anything like that on the macro or contemplated going forward and then can you give us an update on competition.

Speaker Change: Wins of restaurants at our ears are eating up so it's absolutely something that we're watching but we don't see any signal as of yet in terms of the consumer and remember the categories that we operate in.

Justin Post: Bay area, and San Francisco Bay area and L. A.

Justin Post: No those are areas, where windows operating just any update on the competition there. Thank you.

Justin Post: Absolutely. So in terms of macro just and we're watching it pretty closely we don't see any signals that that I'd describe a significant audience growth is very consistent with last quarter up 14% frequency is consistent as well.

Speaker Change: These are restaurants transportation grocery tend to be categories that are quite consistent even during periods of macro uncertainty. So I think from a relative standpoint were.

Dara Khosrowshahi: Waymo is definitely the leader there, but there are many other players investing in the space and we expect to see, you know, a number of successful companies in the space hopefully partnering with us. Yeah.

Waymo is definitely the leader there, but there are many other players investing in the space and we expect to see, you know, a number of successful companies in the space hopefully partnering with us. Yeah.

Speaker Change: A little bit less subject to these issues, but right now we don't see any signals whatsoever, and hopefully it'll remain the same and you kind of see that in the guidance, which is pretty consistent in terms of topline with with this quarter in.

Justin Post: We are looking to modulate price increases and you saw that in our results as well, but we're not seeing like basket sizes continue to increase I think that would be a leading indicator to the extent that there was macro uncertainty, we're not seeing trade down in terms of the.

Prashanth Mahendra-Rajah: So Mark, on the insurance question, if you remember in Q4 of last year, we indicated that for 2025 we thought insurance increases would moderate and more likely be in the high single, perhaps low teens area. We actually overestimated it. CPI print for March was coming in at 7% year over year, and that's the lowest we've seen in almost three years. So as we think about our US Mobility insurance cost expectations for the balance of the year, we're thinking that it will continue to be a very modest headwind of high single digits through 2025, and that is meaningfully lower than we've seen in the last two years. Certainly given the rate of growth for the US Mobility business, that's going to create some leverage for us. But as I said in my prior response, we intend to pass those opportunities to consumers.

Speaker Change: In terms of San Francisco and L. A the competitive environment pretty stable adjusted and we're not seeing any change there.

Justin Post: Kind of restaurants that are years are eating up so it's absolutely something that we're watching but we don't see any signal as of yet in terms of the consumer and remember the categories that we operate in.

Speaker Change: There are very supportive of our.

Speaker Change: <unk> plans to kind of get San Francisco going again, and we think that will benefit all of the competitors in that marketplace.

Speaker Change: Great. Thank you Youre.

Speaker Change: You're welcome next question.

Justin Post: These are restaurants transportation grocery tend to be categories that are quite consistent even during periods of macro uncertainty. So I think from a relative standpoint, we're a little bit less subject to these issues, but right now we don't see any signals whatsoever and hopefully it will remain the same.

Speaker Change: Your next question comes from the line of Ken <unk> with Wells Fargo. Please go ahead.

Ken: Thank you two if I may please first maybe one for Sean.

Speaker Change: Given the affordability initiatives and the commentary on on insurance, but also.

Ken: Youre kind of preview of to go get.

Justin Post: You kind of see that in the guidance, which is pretty consistent in terms of topline with with this quarter.

Ken: Event later this month could you talk about the impact potentially on mobility margins in the second half of this year and beyond and then one for Dara. Please.

Justin Post: In terms of San Francisco and L. A the competitive environment pretty stable adjusted and we're not seeing any change there.

Justin Post: Are very supportive of.

Ken: If you could talk.

Ken: Expand a little bit more about your view of the AAV landscape kind of both inside the U S and outside the U S. When do you see software enabled solutions as a as a scaled commercial option. Thank you.

Justin Post: Mayor <unk> plans to kind of get San Francisco going again, and we think that will benefit all of the competitors in that marketplace.

Prashanth Mahendra-Rajah: Now, where we are getting some incremental strength from the great efforts of our team are in a few areas. First on safety tech, some great innovation that we're driving in this space, including giving our drivers insight into how their driving behavior is being scored, and that is now live in all US markets. And drivers are responding very favorably to being able to understand their actions like speeding, harsh braking, acceleration, et cetera. So that's one element that we've now deployed across the US. On the policy side, which has also been an area that we've been talking about for a while, we're getting some great momentum there. For example, just in this Q1, a tort reform bill is in Georgia awaiting the governor's signature.

Now, where we are getting some incremental strength from the great efforts of our team are in a few areas. First on safety tech, some great innovation that we're driving in this space, including giving our drivers insight into how their driving behavior is being scored, and that is now live in all US markets. And drivers are responding very favorably to being able to understand their actions like speeding, harsh braking, acceleration, et cetera. So that's one element that we've now deployed across the US. On the policy side, which has also been an area that we've been talking about for a while, we're getting some great momentum there. For example, just in this Q1, a tort reform bill is in Georgia awaiting the governor's signature.

Justin Post: Great. Thank you.

Justin Post: Next question.

Speaker Change: Your next question comes from the line of Ken <unk> with Wells Fargo. Please go ahead.

Ken: Yeah, Ken so.

Ken: Let me.

Ken: Reluctant to guide for the second half, but I can say this that that we are committed to continuing Lee showing steady margin improvement on a year over year basis.

Speaker Change: Thank you two if I may please first maybe one for Sean.

Speaker Change: Given the affordability initiatives and the commentary on on insurance, but also youre kind of preview of to go get.

Ken: As we've said many times, we're going to we're going to manage the P&L across both lines of businesses and striking that really tough balance of <unk>.

Speaker Change: Event later this month could you talk about the impact potentially on mobility margins in the second half of this year and beyond and then one for Dara. Please.

Ken: Investing for growth when we have so many opportunities to invest in while continuing to to drive the profitability of the company. We shared some pretty strong profit expansion in the mobility.

Speaker Change: If you could talk.

Speaker Change: Expand a little bit more about your view of the landscape kind of both.

Speaker Change: Inside the U S and outside the U S. When do you see software enabled solutions as a as a scaled commercial option. Thank you.

Ken: Business this quarter on a sequential basis and on a year over year basis, I would not take that as an indicator for how you want to model the balance of year I think that steady margin expansion throughout the throughout.

Prashanth Mahendra-Rajah: And if we get through that, that's going to be a meaningful step to combat some of the legal system abuse, and is going to help us continue to drive down insurance costs over time. And we have other bills in other states like Nevada and Texas, and continue to have some good discussions in other areas. So overall, I think that the energy that we are spending on insurance, both because we have a captive, that allows us to create tension on pricing. We have an organization of engineers that's really working on finding new technologies, and the efforts that we're doing on the policy side are going to continue to make this a more favorable situation for us than it has been over the past couple years.

And if we get through that, that's going to be a meaningful step to combat some of the legal system abuse, and is going to help us continue to drive down insurance costs over time. And we have other bills in other states like Nevada and Texas, and continue to have some good discussions in other areas. So overall, I think that the energy that we are spending on insurance, both because we have a captive, that allows us to create tension on pricing. We have an organization of engineers that's really working on finding new technologies, and the efforts that we're doing on the policy side are going to continue to make this a more favorable situation for us than it has been over the past couple years.

Ken: Yes, Ken so.

Ken: Let me.

Ken: Reluctant to guide for the second half, but I can say this that we are committed to continuing Lee showing steady margin improvement on a year over year basis, but as we've said many times, we're going to we're going to manage the P&L across both lines of businesses and striking that really tough balance of.

Ken: The cycle of this company on a year over year basis of how you want to how you want to model this out.

Speaker Change: Yes in terms of <unk>, we're seeing a ton of innovation in the marketplace that we're actually quite excited about and generally you see.

Speaker Change: Really I would say Avi <unk> was based on heuristics a bunch of if then based on different scenarios that were being built and we're seeing players like way Moe and a number of others move more and more the heuristics logic into large transformer models.

Ken: Investing for growth, where we have so many opportunities to invest in while continuing to to drive the profitability of the company.

Ken: We shared some pretty strong profit expansion in the mobility.

Dara Khosrowshahi: Mark, I just stress on the policy angle that US drivers are not less safe than drivers internationally. The cost of insurance that has to be paid on to consumers outside of the US is de minimis compared to the US. So this is just. It's a huge part of inflation that consumers are experiencing. We're hoping that local policymakers and the administration in place, you know, want to fight inflation as much as we do because really this inflation is caused by abuse of the legal system. It's entirely unnecessary. And we're hoping that policymakers can work with us to bring prices down for consumers and more of the fares going into the driver's pockets that we really think is a win. Win. Okay, next question. Thank you very much. You're welcome.

Ken: Business this quarter on a sequential basis and on a year over year basis, I would not take that as an indicator for how you want to model the balance of year I think that the steady margin expansion throughout the throughout the cycle of this company on a year over year basis of how you want to how you want to model us out.

Speaker Change: To create more flexibility better scalability better cost et cetera.

Speaker Change: Those kinds of models also have the benefit of not having to be over fits two particular compute or hardware or sensor stacks as well. They are generalizable in terms of where they drive and then more generalizable in terms of the hardware kit that's necessary the sensor kit et cetera. So that has all moved.

Ken: Yes in terms of <unk>, we're seeing a ton of innovation in the marketplace that we're actually quite excited about and generally you see.

Speaker Change: <unk>.

Speaker Change: In the right direction as far as separating the software stack from the hardware stack.

Ken: Really I would say Avi <unk> was based on heuristics, a bunch of them based on different scenarios that were being built and we're seeing players like way Moe and a number of others move more and more the heuristics logic into large transformer models.

Speaker Change: I think a lot of you probably saw the announcement of Weibo partnering up with <unk>.

Speaker Change: Toyota that's just indicative, we think of where <unk> is going which is you've got a pure play software developers.

Okay, next question.

Ken: To create more flexibility better scalability better cost et cetera.

Mark Mahaney: Thank you very much.

Speaker Change: Creasing Lee.

Dara Khosrowshahi: You're welcome.

Speaker Change: Offering.

Operator: Your next question comes from the line of Justin Post with Bank of America. Please go ahead.

Speaker Change: More sophisticated platforms.

Ken: And those kinds of models also have the benefit of not having to be over fits.

Speaker Change: Platforms.

Speaker Change: To the Oems around the world and a world in which 10 years from now of every single New car sold comes with level four level. Five we think is a terrific outcome in terms of safety for the streets and also our platform, which will allow any player any owner of those vehicles, whether it's financial.

Dara Khosrowshahi: Great, thanks. Just like a question on the macro you mentioned maybe slower airport trips, but any impact on mobility rides or pricing or delivery, you know, lower AOVs or anything like that on the macro or contemplated going forward. And then can you give us an update on competition in Bay Area and San Francisco? Sorry, Bay Area and LA. I know those are areas where Waymo's operating. Just any update on the competition there? Thank you. Yeah, absolutely. So in terms of macro, Justin, we're watching it pretty closely. We don't see any signals that I describe as significant. Audience growth is very consistent with last quarter, up 14%. Frequency is consistent as well. We are looking to modulate price increases and you saw that in our results as well. But we're not seeing like, you know, basket sizes continue to increase.

Justin Post: Great, thanks. Just like a question on the macro you mentioned maybe slower airport trips, but any impact on mobility rides or pricing or delivery, you know, lower AOVs or anything like that on the macro or contemplated going forward. And then can you give us an update on competition in Bay Area and San Francisco? Sorry, Bay Area and LA. I know those are areas where Waymo's operating. Just any update on the competition there? Thank you.

Ken: Two particular compute or hardware or sensor stacks as well they are generalizable in terms of where they drive and are more generalizable in terms of the hardware kit that's necessary the sensor kit et cetera. So that is all moving in the right direction as far as separating the software stack from the.

Speaker Change: Situtions et cetera to monetize those vehicles at the highest utilization so that they've got the lowest cost of capital. So the direction that we're seeing is absolutely. It's very encouraging there are some players out there that are.

Ken: Hardware stack.

Speaker Change: I think a lot of you probably saw the announcement of Weibo partnering up with.

Speaker Change: Toyota that's just indicative, we think of where <unk> is going which is you've got a pure play software developers.

Dara Khosrowshahi: Yeah, absolutely. So in terms of macro, Justin, we're watching it pretty closely. We don't see any signals that I describe as significant. Audience growth is very consistent with last quarter, up 14%. Frequency is consistent as well. We are looking to modulate price increases and you saw that in our results as well. But we're not seeing like, you know, basket sizes continue to increase.

Speaker Change: Our pure recall NEF.

Speaker Change: Next generation large models end to end models as well. These are the waves are the lobbies of the world.

Speaker Change: Increasingly.

Speaker Change: The offering more sophisticated.

Speaker Change: In trucking our momentum as well.

Speaker Change: Platforms to the Oems around the world and a world in which you know 10 years from now or every single new car sold.

Speaker Change: And that is a more pure AI kind of direction.

Speaker Change: <unk> has been incredibly promising in terms of the pace of development and again, the generalizability of a software both in terms of where it's driving and the hardware kits as well.

Speaker Change: Comes with level four level five we think is a terrific outcome in terms of safety for the streets and also our platform which will allow.

Dara Khosrowshahi: I think that would be leading indicator to the extent that there was macro uncertainty. We're not seeing trade downs in terms of the kinds of restaurants that our eaters are eating at. So it's absolutely something that we're watching, but we don't see any signal as of yet in terms of the consumer. And remember, the categories that we operate in, you know, these are restaurants, transportation, grocery, tend to be categories that are quite consistent even during periods of macro uncertainty. So I think from a relative standpoint, we're, you know, a little bit less.

I think that would be leading indicator to the extent that there was macro uncertainty. We're not seeing trade downs in terms of the kinds of restaurants that our eaters are eating at. So it's absolutely something that we're watching, but we don't see any signal as of yet in terms of the consumer. And remember, the categories that we operate in, you know, these are restaurants, transportation, grocery, tend to be categories that are quite consistent even during periods of macro uncertainty. So I think from a relative standpoint, we're, you know, a little bit less. Subject to these issues.

Speaker Change: Any player any owner of those vehicles, whether it's financial institutions et cetera to monetize those vehicles at the highest utilization so that they've got the lowest cost of capital. So the direction that we're seeing is absolutely. It's very encouraging there are some players out there that are.

Speaker Change: So the innovation that we see is is pretty incredible.

Speaker Change: We are obviously working with many of these partners around the World I think we've got an excellent point of view as to.

Speaker Change: Who the leaders are and you're seeing us partner with many of the leaders in the industry. So hopefully more to come and we've announced I think five partnerships in the past week.

Speaker Change: Our pure recall lids.

Speaker Change: Next generation large models end to end models as well. These are the waves are the lobbies of the world.

Speaker Change: It is coming fast and furious and the innovation and the.

Speaker Change: Trucking our momentum as well.

Speaker Change: Development, there is pretty exciting for us.

Speaker Change: And that is a more pure AI kind of direction.

Bob: Thank you Bob.

Balaji Krishnamurthy: Subject to these issues.

Speaker Change: Awesome.

Dara Khosrowshahi: But right now we don't see any signal whatsoever. Hopefully it will remain the same. You kind of see that in the guidance, which is pretty consistent in terms of top line with this quarter in terms of San Francisco and LA, the competitive environment, pretty stable. Justin, we're not seeing any change there. We are very supportive of Mayor Lurie's plans to kind of get San Francisco going again. We think that will benefit all of the competitors in that marketplace. Thank you. You're welcome. Next question.

But right now we don't see any signal whatsoever. Hopefully it will remain the same. You kind of see that in the guidance, which is pretty consistent in terms of top line with this quarter in terms of San Francisco and LA, the competitive environment, pretty stable. Justin, we're not seeing any change there. We are very supportive of Mayor Lurie's plans to kind of get San Francisco going again. We think that will benefit all of the competitors in that marketplace.

Speaker Change: Which has been incredibly promising in terms of the pace of development and again, the generalizability of a software both in terms of where it's driving and the hardware kits as well.

Speaker Change: Your next question comes from the line of Schweitzer <unk> with Wolfe Research. Please go ahead.

Speaker Change: Thanks, a lot for taking my questions I have two on delivery. Please.

Speaker Change: So the innovation that we see is is pretty incredible.

Speaker Change: Could you. Please talk about your affordability efforts in your letter you talked to.

Speaker Change: We are obviously working with many of these partners around the World I think we've got an excellent point of view as to.

Speaker Change: Four key areas and affordability is what was one of them since you could expand on that that'd be great and then the second is just.

Speaker Change: Europe in particular, we have seen now you have a majority stake you just announced and then door dasher announce delivery. So could you. Please talk to that market. How fast is it growing what is the competitive landscape look like there.

Justin Post: Thank you.

Dara Khosrowshahi: You're welcome. Next question.

Operator: Your next question comes from the line of Ken Gawrelski with Wells Fargo. Please go ahead.

Speaker Change: It is coming fast and furious.

Speaker Change: The innovation and the.

Dara Khosrowshahi: Thank you. Two, if I may, please. First, maybe one for Prashanth, given the affordability initiatives and the commentary on insurance, but also your kind of preview of the Go get event later this month. Could you talk about the impact potentially on mobility margins in the second half of this year and beyond? And then one for Dara, please. If you could talk expand a little bit more about your, your view of the AV landscape kind of both inside the US and outside the US, when do you see software enabled AV solutions as a, as a scale commercial option? Thank.

Ken Gawrelski: Thank you. Two, if I may, please. First, maybe one for Prashanth, given the affordability initiatives and the commentary on insurance, but also your kind of preview of the Go get event later this month. Could you talk about the impact potentially on mobility margins in the second half of this year and beyond? And then one for Dara, please. If you could talk expand a little bit more about your, your view of the AV landscape kind of both inside the US and outside the US, when do you see software enabled AV solutions as a, as a scale commercial option? Thank you.

Speaker Change: Development, there is pretty exciting for us.

Speaker Change: And how do you view consolidations, thanks a lot.

Bob: Thank you Bob.

Speaker Change: Yeah, absolutely. So in terms of delivery, we are very focused on affordability as it relates to delivery as well.

Speaker Change: Awesome.

Speaker Change: Your next question comes from the line of Sean <unk> with Wolfe Research. Please go ahead.

Speaker Change: And the two efforts that I would point out one is membership so memberships essentially is.

Speaker Change: Thanks, a lot for taking my questions I have two on delivery. Please yes Dara could you. Please talk about your affordability efforts in your letter you talked to.

Speaker Change: Our.

Speaker Change: Lowering prices no delivery fee for example for members.

Speaker Change: And for the most loyal customers that we've got members tend to have high retention they spend three times more than non members as well.

Speaker Change: Four key areas and affordability is what was one of them. If you could expand on that that'd be great and then the second is just in.

Speaker Change: In Europe in particular, we have seen now you have a majority stake.

Speaker Change: And our membership program now with 30 million members is delivering billions of discounts so to speak for those members and our penetration of membership continues to increase on delivery.

Speaker Change: Announcing then door dasher announce delivery. So could you please talk to that market how fast is it growing.

Prashanth Mahendra-Rajah: You.

Balaji Krishnamurthy: Yeah, Ken.

Prashanth Mahendra-Rajah: Yeah, Ken.

Prashanth Mahendra-Rajah: So I'm reluctant to guide for the second half, but I can say this, that we are committed to continually showing steady margin improvement on a year over year basis. But as we've said many times, we're going to manage the P&L across both lines of businesses and striking that really tough balance of investing for growth when we have so many opportunities to invest in while continuing to drive the profitability of the company. We shared some pretty strong profit expansion in the mobility business this quarter on a sequential basis and on a year over year basis. I would not take that as an indicator for how you want to model the balance of year. I think that steady margin expansion throughout the cycle of this company on a year over year basis is how you want to model us out.

So I'm reluctant to guide for the second half, but I can say this, that we are committed to continually showing steady margin improvement on a year over year basis. But as we've said many times, we're going to manage the P&L across both lines of businesses and striking that really tough balance of investing for growth when we have so many opportunities to invest in while continuing to drive the profitability of the company. We shared some pretty strong profit expansion in the mobility business this quarter on a sequential basis and on a year over year basis. I would not take that as an indicator for how you want to model the balance of year. I think that steady margin expansion throughout the cycle of this company on a year over year basis is how you want to model us out.

Speaker Change: Is the competitive landscape look like there.

Speaker Change: How do you view consolidation thanks a lot.

Speaker Change: It's over 60% now.

Speaker Change: Yeah, absolutely. So in terms of delivery, we are very focused on affordability as it relates to delivery as well.

Speaker Change: And in certain markets. It's at the 70 plus percent Mark as well. So we think more members getting better deals getting more discounts.

Speaker Change: And the two efforts that I would point out one is membership so memberships essentially is.

Speaker Change: <unk> is a good thing.

Speaker Change: Our lowered.

Speaker Change: Lowering prices no delivery fee for example.

Speaker Change: And Thats part of our business that continues to grow.

Speaker Change: <unk> members.

Speaker Change: Second area of focus that I point out or what we call merchant funded offers.

Speaker Change: And for the most loyal customers that we've got members tend to have higher retention they spend three times more than non members as well.

Speaker Change: These are essentially offers that merchants can put into the system.

Speaker Change: I just enjoyed one a couple of nights ago was kind of buy one get one free or other kinds of discounts merchants like those discounts because their cost of food is unnecessarily.

Speaker Change: And our membership program now with 30 million members is delivering billions of discounts so to speak for those members in our penetration of membership continues to increase on delivery.

Speaker Change: <unk>.

Speaker Change: Get to kind of use the cost of food as as the discount and they can enjoy a margin on their on their food and we're seeing higher and higher percentages of merchant funded offers in the marketplace.

Speaker Change: It's over 60% now.

Speaker Change: And in certain markets, it's over 70 plus percent mark as well. So we think more members getting better deals getting more discounts.

Dara Khosrowshahi: Yeah. In terms of AV, we're seeing a ton of innovation in the marketplace that we're actually quite excited about. And generally you see, you know, really I would say AV tech was based on heuristics, a bunch of if-thens based on different scenarios that were being built. And we're seeing players like Waymo and a number of others, you know, move more and more the heuristics logic into large Transformer models to create more flexibility, better scalability, better cost, et cetera. And those kinds of models also have the benefit of not having to be overfit to particular compute or hardware or sensor stacks as well. They are generalizable in terms of where they drive and they're more generalizable in terms of the hardware kit that's necessary, the sensor kit, etc.

Speaker Change: Merchants, who put these offers into the marketplace increase their visibility in the marketplace.

Speaker Change: <unk> is a good thing.

Speaker Change: To increase their sales in the marketplace as well, we're seeing growth in both and we think that is partially responsible for the consistently high gross bookings growth that we're seeing in delivery both in the U S.

Speaker Change: And Thats part of our business that continues to grow.

Speaker Change: Second area of focus that I point out or what we call merchant funded offers.

Speaker Change: These are essentially offers that merchants can put into the system.

Speaker Change: And internationally as well.

Speaker Change: I just enjoyed one a couple of nights ago with kind of buy one get one free or other kinds of discounts merchants like those discounts because their cost of food isn't necessarily.

Speaker Change: And then to your question in terms of in terms of.

Speaker Change: Titian, especially Europe, we're really really happy about our results in Europe. We recently, we believe got to the number one category position in the UK with eats.

Speaker Change: <unk>.

Speaker Change: Get to kind of use the cost of food as the discount and they can enjoy a margin on their on their food and we're seeing higher and higher percentages of merchant funded offers in the marketplace.

Speaker Change: Entirely organically, we didn't have to buy our way into glory, so to speak France remains a top market for us.

Speaker Change: Merchant, who put these offers into the marketplace increase their visibility in the marketplace and are able to increase their sales in the marketplace as well, we're seeing growth in both and we think that is partially responsible for the consistently high gross bookings growth that we're seeing in delivery both in the U S.

Dara Khosrowshahi: So that is all moving in the right direction as far as separating the software stack from the hardware stack. I think a lot of you probably saw the announcement of Waymo partnering up with Toyota. That's just indicative, we think, of where AV is going, which is you've got pure play software developers increasingly offering more sophisticated AV platforms to the OEMs around the world. And a world in which, you know, 10 years from now, every single new car sold comes with level four, level five AV we think is terrific outcomes in terms of safety for the streets and also our platform, which will allow, you know, any player, any owner of those vehicles, whether it's financial institutions, et cetera, to monetize those vehicles at the highest utilization so that they've got the lowest cost of capital.

So that is all moving in the right direction as far as separating the software stack from the hardware stack. I think a lot of you probably saw the announcement of Waymo partnering up with Toyota. That's just indicative, we think, of where AV is going, which is you've got pure play software developers increasingly offering more sophisticated AV platforms to the OEMs around the world. And a world in which, you know, 10 years from now, every single new car sold comes with level four, level five AV we think is terrific outcomes in terms of safety for the streets and also our platform, which will allow, you know, any player, any owner of those vehicles, whether it's financial institutions, et cetera, to monetize those vehicles at the highest utilization so that they've got the lowest cost of capital.

Speaker Change: And we think that Germany. For example is a market that holds a significant amount of promise.

Speaker Change: We launched in Germany, three to four years ago at our category position continues to increase in Germany.

Speaker Change: As we invest in that market, both on the mobility and delivery side. So we're seeing very.

Speaker Change: And internationally as well.

Speaker Change: We're seeing very encouraging trends in Europe, and frankly, it's not a surprise to see some of our competitors.

Speaker Change: And then to your question in terms of in terms of.

Speaker Change: Titian, especially Europe, we're really really happy about our results in Europe. We recently, we believe got to the number one category position in the UK with eats.

Speaker Change: Look to expand their inorganically.

Speaker Change: Like organic expansion more we've been investing for years in these marketplaces and I think it shows in our results.

Speaker Change: Thank you Tom that's helpful.

Speaker Change: Entirely organically, we didn't have to buy our way into glory, so to speak France remains a top market for us.

Speaker Change: Next question.

Speaker Change: Your next question comes from the line of Michael Martin with SBB Moffett Nathan. Please go ahead.

Speaker Change: And we think that Germany. For example is a market that holds a significant amount of promise.

Speaker Change: Okay.

Speaker Change: Good morning, everybody. Thank you for the question one on delivery and then one on mobility.

Speaker Change: We launched in Germany, three to four years ago at our category position continues to increase in Germany.

Dara Khosrowshahi: So the direction that we're seeing is absolutely; it's very encouraging. There are some players out there that are pure, call it next generation large models, end-to-end models as well. You know, these are the Wayve or the Waabi of the world in trucking or Momenta as well. And that is a more pure AI kind of direction, which has been incredibly promising in terms of the pace of development and again the generalizability of the software, both in terms of where it's driving, and the hardware kits as well. So the innovation that we see is pretty incredible. We are obviously working with many of these partners around the world. I think we've got an excellent point of view as to who the leaders are, and you're seeing us partner with many of the leaders in the industry. So hopefully more to come.

So the direction that we're seeing is absolutely; it's very encouraging. There are some players out there that are pure, call it next generation large models, end-to-end models as well. You know, these are the Wayve or the Waabi of the world in trucking or Momenta as well. And that is a more pure AI kind of direction, which has been incredibly promising in terms of the pace of development and again the generalizability of the software, both in terms of where it's driving, and the hardware kits as well. So the innovation that we see is pretty incredible. We are obviously working with many of these partners around the world. I think we've got an excellent point of view as to who the leaders are, and you're seeing us partner with many of the leaders in the industry. So hopefully more to come.

Speaker Change: Delivery as we see the continued adoption of these large language models introducing shopping experiences.

Speaker Change: As we invest in that market, both on the mobility and delivery side. So we're seeing very.

Speaker Change: We're seeing very encouraging trends in Europe, and frankly, it's not a surprise to see some of our competitors.

Speaker Change: To be preferring different retailers.

Speaker Change: Let's just say the two giants in which we're all aware of.

Eric Sheridan: And it seems like a natural opportunity for Uber to work in partnership with these retailers you already work with to deliver local inventories. So Dara I was curious.

Look to expand their inorganically.

Speaker Change: Organic expansion more we've been investing for years in these marketplaces and I think it shows in our results.

Tom: Thank you Tom that's helpful.

Speaker Change: Any possibility.

Speaker Change: Next question.

Speaker Change: Sits with the <unk> of the World and then I think one 4% on the sparse markets could you talk about the duration of this opportunity and the ability to continue offsetting some of the natural deceleration you've seen in some of your urban markets and then maybe help investors think about the <unk>.

Speaker Change: Your next question comes from the line of Michael Martin with SBB Moffett Nathan. Please go ahead.

Speaker Change: Good morning, everybody. Thank you for the question one on delivery and then one on mobility.

Speaker Change: Delivery as we see the continued adoption of these large language models introducing shopping experiences they seem to be preferring different retailers and let's just say the two giants in which we're all aware of.

Speaker Change: Margin profile of the sparse mobility markets compared to your core kind of urban markets. Thank you so much.

Dara Khosrowshahi: You know, we've announced, I think, five partnerships in the past week. It is coming fast and furious, and the innovation and the development there is pretty exciting for us. Thank you both. You're welcome.

You know, we've announced, I think, five partnerships in the past week. It is coming fast and furious, and the innovation and the development there is pretty exciting for us.

Speaker Change: Yes, I think on delivery and large language models, we're very very early in terms of the development of these of the models and their application to consumer experiences or enterprise technology, and I wouldn't say that right now our focus is to kind of push volume from one merchant to the other.

Speaker Change: And it seems like a natural opportunity for Uber to work in partnership with these retailers you already work with to deliver local inventories. So Dara I was curious.

Ken Gawrelski: Thank you both.

Dara Khosrowshahi: You're welcome.

Operator: Your next question comes from the line of Shweta Khajuria with Wolfe Research. Please go ahead. Thanks a lot for taking my questions. F2 on delivery, please. Dara, could you please talk about your affordability efforts? In your letter you talked to four key areas and affordability was one of them. So if you could please expand on that, that'd be great. And then the second is just in Europe in particular, we have seen now you have a majority stake, you just announced and then DoorDash announced Deliveroo. So could you please talk to that market? How fast is it growing? What does the competitive landscape look like there and how do you view consolidation? Thanks a lot.

Operator: Your next question comes from the line of Shweta Khajuria with Wolfe Research. Please go ahead.

Speaker Change: Any possibility of partnerships with the <unk> of the World and then I think one 4% on the sparse market could you talk about the duration of this opportunity and the ability to continue offsetting some of the natural deceleration you've seen in some of your urban markets and then maybe help investors think about.

Shweta Khajuria: Thanks a lot for taking my questions. F2 on delivery, please. Dara, could you please talk about your affordability efforts? In your letter you talked to four key areas and affordability was one of them. So if you could please expand on that, that'd be great. And then the second is just in Europe in particular, we have seen now you have a majority stake, you just announced and then DoorDash announced Deliveroo. So could you please talk to that market? How fast is it growing? What does the competitive landscape look like there and how do you view consolidation? Thanks a lot.

Speaker Change: It's really to focus on improving the customer experience.

Speaker Change: It starts in smaller ways. So for example, we're using larger models.

Speaker Change: In terms of our restaurant and grocery search.

Speaker Change: So that we understand more about the context of the consumer we get to know the consumer more and we're able to.

Speaker Change: Al.

Speaker Change: Margin profile of the sparse mobility markets compared to your core kind of urban markets. Thank you so much.

Speaker Change: To surface better results higher quality results in terms of search in terms of.

Speaker Change: The sort order of restaurants that we're offering or the promotions that we're offering to you as well and then we absolutely are working with the opening of the world and the other leading llm's.

Dara Khosrowshahi: Yeah, absolutely. So in terms of delivery, we are very focused on affordability as it relates to delivery as well. And the two efforts that I would point out, you know, one is membership. So membership essentially is our lowering prices, no delivery fee, for example, for members. And for the most loyal customers that we've got, members tend to have high retention. They spend three times more than non-members as well. And our membership program now with 30 million members is delivering billions of discounts, so to speak, for those members. And our penetration of membership continues to increase on delivery; it's over 60% now, and in certain markets it's at the 70-plus percent mark as well. So we think more members getting better deals, getting more discounts is a good thing. And that's part of our business that continues to grow.

Let's say that right now our focus is to kind of push volume from one merchant to the other it's really to focus on improving the customer experience.

Speaker Change: LLM companies in terms of some of the agents that are being built.

Speaker Change: And being able to offer kind of Uber experience that is seamless and delightful that you can talk to as well.

Speaker Change: It starts in smaller ways. So for example, we're using larger models.

Speaker Change: I stress that it's very very early and experimentation phase.

Speaker Change: In terms of our restaurant and grocery search.

Speaker Change: And we're going to be working with them to understand what the possibilities are we have unique access to transportation inventory.

Speaker Change: So that we understand more about the context of the consumer we get to know the consumer more and we're able to.

Speaker Change: To surface better results higher quality results in terms of search in terms of.

Speaker Change: We are global obviously, we.

Speaker Change: Human drivers, we have Avi drivers, we have food available grocery available. So I think we're kind of a partner of choice for many of these players but right now the focus is how do you build consumer experiences that our LIFO. How do you make every single service of ours, a little bit more optimized.

Speaker Change: The sort order of restaurants that we're offering or the promotions that we're offering to you as well and then we absolutely are working with open AI is of the world and the other leading.

Speaker Change: <unk>.

Speaker Change: LLM companies in terms of some of the agents that are being built.

Speaker Change: For consumers and then we will deal with the after effects later in terms of merchant concentration issue, it's not something we're focused on right now.

Speaker Change: And being able to offer kind of an Uber experience that is seamless and delightful that you can talk to as well.

Dara Khosrowshahi: The second area of focus that I point out are what we call merchant-funded offers. These are essentially offers that merchants can put into the system. I just enjoyed one a couple of nights ago. It's kind of buy one, get one free, or other kinds of discounts. Merchants like those discounts because their cost of food isn't necessarily, they get to kind of use the cost of food as the discount and they can enjoy a margin on their food. And we're seeing higher and higher percentages of merchant-funded offers in the marketplace. Merchants who put these offers into the marketplace increase their visibility in the marketplace and are able to increase their sales in the marketplace as well.

The second area of focus that I point out are what we call merchant-funded offers. These are essentially offers that merchants can put into the system. I just enjoyed one a couple of nights ago. It's kind of buy one, get one free, or other kinds of discounts. Merchants like those discounts because their cost of food isn't necessarily, they get to kind of use the cost of food as the discount and they can enjoy a margin on their food. And we're seeing higher and higher percentages of merchant-funded offers in the marketplace. Merchants who put these offers into the marketplace increase their visibility in the marketplace and are able to increase their sales in the marketplace as well.

Speaker Change: Sean if you want to take the other one I will take the second one thanks for the question Michael maybe I could start with just a gentle correction to a comment you made about deceleration.

Speaker Change: I'd stress that it's very very early and experimentation phase.

Speaker Change: And we're going to be working with them to understand what the possibilities are we have unique access to transportation inventory.

Speaker Change: Surprise folks to know that the vast majority of our top 20 cities are still continuing to grow at double digit rates. So we are still very.

Speaker Change: We are global obviously, we have human drivers we have drivers we have food available grocery available. So I think we're kind of a partner of choice for many of these players but right now the focus is how do you build consumer experiences better delightful how do you make every single service of ours, a little bit more off.

Speaker Change: Still seeing very strong growth in our in our core areas, but what we do see as we see the opportunity to to.

Increased the length of time that that core business can grow at attractive rates by investing into the sparse markets and we're already seeing great indications for example mobility.

Speaker Change: <unk>.

Speaker Change: For consumers and then we will deal with the after effects later in terms of merchant concentration issues not something we're focused on right now.

Speaker Change: I'd already mentioned that 20% of our trips or no.

Speaker Change: Coming from Sparser markets, and those are growing even faster than the urban core.

Dara Khosrowshahi: We're seeing growth in both, and we think that is partially responsible for the consistently high gross bookings growth that we're seeing in delivery both in the US and internationally as well. And then to your question, in terms of competition, especially Europe, we're really, really happy about our results in Europe. We recently, we believe, got to the number one category position in the UK with Eats entirely organically. We didn't have to buy our way into glory. So to speak, France remains a top market for us, and we think that Germany, for example, is a market that holds a significant amount of promise. I think we launched in Germany three to four years ago, and our category position continues to increase in Germany as we invest in that market, both on the mobility and delivery side.

We're seeing growth in both, and we think that is partially responsible for the consistently high gross bookings growth that we're seeing in delivery both in the US and internationally as well. And then to your question, in terms of competition, especially Europe, we're really, really happy about our results in Europe. We recently, we believe, got to the number one category position in the UK with Eats entirely organically. We didn't have to buy our way into glory. So to speak, France remains a top market for us, and we think that Germany, for example, is a market that holds a significant amount of promise. I think we launched in Germany three to four years ago, and our category position continues to increase in Germany as we invest in that market, both on the mobility and delivery side.

Speaker Change: Upper shop, you want to take the other one I will take the second one thanks for the question Michael maybe I could start with just a gentle correction to a comment you made about deceleration.

Speaker Change: Having said all that I think the way to maybe to capture all of this is once these markets hit sort of the the full investment profile and they are running they're running well margins are very much in line with what we see in our other markets and the rate at which we are investing as well.

Speaker Change: Any surprise folks to know that the vast majority of our top 20 cities are still continuing to grow at double digit rates. So we.

Speaker Change: We are still very.

Speaker Change: Still seeing very strong growth in our in our core areas, but what we do see as we see the opportunity to to.

Speaker Change: We're launching hundreds of new cities in 2025, so there's plenty of room for us to run here. Obviously, there is an investment period before they before they achieve those are those more.

Speaker Change: Increase the length of time, but that core business can grow at attractive rates by investing into these markets and we're already seeing great indications for example in mobility.

Speaker Change: Continuity level of margin profiles, but that's all part of the growth opportunities that we see in front of us.

Speaker Change: I had already mentioned that 20% of our trips are now.

Speaker Change: Great Operator last question please.

Speaker Change: Coming from Sparser markets, and those are growing even faster than the urban core.

Speaker Change: And your last question comes from the line of Nikhil Giovanni with Bernstein. Please go ahead.

Speaker Change: Having said all that I think the way to maybe to capture all of this is once these markets hit sort of the the full investment profile in the running they're running well margins are very much in line with what we see in our other markets and the rate at which we are investing as well.

Nikhil Giovanni: Hi, Thanks for taking my questions I have two on mobility. Please.

Dara Khosrowshahi: So we're seeing very encouraging trends in Europe, and frankly, it's not a surprise to see some of our competitors look to expand there inorganically. We like organic expansion more. We've been investing for years in these marketplaces, and I think it shows in our results.

Nikhil Giovanni: First how should we think about the slope of deceleration and mobility gross bookings over the next year.

Nikhil Giovanni: One step down by several points and maybe Thats, just pricing and mix given the trip growth comments, but how do we get comfortable with mobility.

Nikhil Giovanni: Bookings 19.

Operator: Thank you, Dara. That was helpful.

Shweta Khajuria: Thank you, Dara. That was helpful.

Nikhil Giovanni: 19, tolerating more aggressively here in the quarters to come.

Dara Khosrowshahi: You're welcome. Next question.

Nikhil Giovanni: And then separately a follow up on the less dense markets.

Speaker Change: Continuity level of margin profiles, but thats all part of the growth opportunities that we see in front of us.

Operator: Your next question comes from the line of Michael Morton with MoffettNathanson. Please go ahead.

Speaker Change: Do you think the frequency opportunity in these markets is the same as your larger cities I would imagine is far more car ownership and some reliability difference and if so how do you think about the opportunity set on a frequency basis relative to Europe.

Speaker Change: Alright, operator last question please.

Dara Khosrowshahi: Good morning, everybody.

Michael Morton: Good morning, everybody. Thank you for the question. One on delivery and then one on mobility for delivery. As we see the continued adoption of these large language models introducing shopping experiences, they seem to be preferring different retailers than, let's just say, the two giants. In which we're all aware of. It seems like a natural opportunity. For Uber to work in partnership with these retailers you already work with to deliver the local inventory. So, Dara, I was curious, any possibility of partnerships with the ChatGPTs of the world?

Balaji Krishnamurthy: Thank you for the question.

Dara Khosrowshahi: One on delivery and then one on mobility for delivery.

Speaker Change: And your last question comes from the line of Nicole <unk> with Bernstein. Please go ahead.

Balaji Krishnamurthy: As we see the continued adoption of these large language models introducing shopping experiences, they seem to be preferring different retailers than, let's just say, the two giants.

Nikhil Giovanni: Urban centers. Thank you.

Nicole: Hi, Thanks for taking my questions I have two on mobility. Please.

Speaker Change: Thanks, Nicole I'll start and then hand off to Dara I think the if you go back to the two.

Nicole: First how should we think about the slope of deceleration and mobility gross bookings over the next year.

Nikhil Giovanni: The algorithm.

Nikhil Giovanni: As bookings equals trips times hour, our average our average price and if you look at to be strong growth that we've been putting up over the last several quarters. Those have all been built on top of a 19% year over year trip for the last three quarters and our indicate.

Dara Khosrowshahi: In which we're all aware of.

Balaji Krishnamurthy: It seems like a natural opportunity.

Nicole: One step down by several points and maybe that's just pricing and mix given the pip growth comments, but how do we get comfortable with mobility.

Dara Khosrowshahi: For Uber to work in partnership with these retailers you already work with to deliver the local inventory. So, Dara, I was curious, any possibility of partnerships with the ChatGPTs of the world?

Nicole: <unk> bookings.

Nicole: Not decelerating more aggressively here in the quarters to come.

Nicole: And then separately a follow up on that the less dense markets.

Balaji Krishnamurthy: And then I think one for Prasad.

And then I think one for Prasanth. On the sparse markets. Could you talk about the duration of this opportunity and the ability to continue offsetting some of the natural deceleration you've seen in some of your urban markets? And then maybe help investors think about the margin profile of the sparse mobility markets compared to your core kind of urban markets? Thank you so much.

Nikhil Giovanni: Is that Q2 is going to be in similar similar vein.

Dara Khosrowshahi: On the sparse markets.

Speaker Change: Do you think the frequency opportunity in these markets is the same as your larger cities I would imagine it's far more car ownership and some reliability difference and if so how do you think about the opportunity set on a frequency basis relative to Europe.

Balaji Krishnamurthy: Could you talk about the duration of this opportunity and the ability to continue offsetting some of the natural deceleration you've?

Nikhil Giovanni: The contributor to that to those trip growth continues to be heavily led by audience growth.

Dara Khosrowshahi: Seen in some of your urban markets.

Balaji Krishnamurthy: And then maybe help investors think about.

Nikhil Giovanni: And so.

Nikhil Giovanni: So that that narrowing.

Dara Khosrowshahi: The margin profile of the sparse mobility markets compared to your core kind of urban markets? Thank you so much. Yeah, I think on delivery and large language models, you know, we're very, very early in terms of the development of these, of the models and their application to consumer experiences or enterprise technology. You know, it starts in smaller ways.

Nicole: Urban centers. Thank you.

Nikhil Giovanni: The delta between trips and gross bookings is coming from as I mentioned, a little bit of mix, because we saw higher international mix and.

Nicole: Thanks, Nicole I'll start and then hand off to Dara I think the if you go back to the two.

Dara Khosrowshahi: Yeah, I think on delivery and large language models, you know, we're very, very early in terms of the development of these, of the models and their application to consumer experiences or enterprise technology. You know, it starts in smaller ways.

Nicole: The algorithm.

Nicole: Is bookings equals trips times, our average our average price and if you look at to be strong growth that we've been putting up over the last several quarters. Those have all been built on top of a 19% year over year Triple for the last three quarters and our.

Nikhil Giovanni: The.

Nikhil Giovanni: Favorable versus expected.

Nikhil Giovanni: Delta on insurance costs. So we would we would sort of I guess softly, let you think about balance of year gross bookings should you shouldnt be looking for a deceleration you should be looking for that trip growth continued to be led heavily by bye.

Nicole: Is that Q2 is going to be in similar similar vein.

Dara Khosrowshahi: So, for example, we're using larger models in terms of our restaurant and grocery search so that we understand more about the context of the consumer, we get to know the consumer more, and we're able to surface better results, higher quality results in terms of search, in terms of the sort order of restaurants that we're offering you or the promotions that we're offering you as well. And then we absolutely are working with OpenAI's of the world and the other leading LLMs and LLM companies in terms of some of the agents that are being built and being able to offer kind of an Uber experience that is seamless and delightful that you can talk to as well. I stress that it's very, very early in experimentation phase, and you know, we're going to be working with them to understand what the possibilities are.

So, for example, we're using larger models in terms of our restaurant and grocery search so that we understand more about the context of the consumer, we get to know the consumer more, and we're able to surface better results, higher quality results in terms of search, in terms of the sort order of restaurants that we're offering you or the promotions that we're offering you as well. And then we absolutely are working with OpenAI's of the world and the other leading LLMs and LLM companies in terms of some of the agents that are being built and being able to offer kind of an Uber experience that is seamless and delightful that you can talk to as well. I stress that it's very, very early in experimentation phase, and you know, we're going to be working with them to understand what the possibilities are.

Nicole: The contributor to that to those trip growth continues to be heavily led by audience growth.

Nikhil Giovanni: Audience growth and.

Nikhil Giovanni: And then we'll have to see what where the where the pricing opportunities continue to be provided by insurance.

Nicole: And.

Nicole: So that that narrowing.

Nicole: The delta between trips and gross bookings is coming from as I mentioned, a little bit of mix, because we saw higher international mix and.

Nikhil Giovanni: I'd just add in terms of mobility trip growth as well as that.

Nikhil Giovanni: The base trip growth of core trip growth is super charge by the growth in less dense areas as well and some of the growth that we've had in terms of lower cost products.

Nicole: The favorable versus expected.

Nicole: Delta uninsured cost. So we would we would sort of I guess softly, let you think about balance of year.

Nikhil Giovanni: Two wheelers and three wheelers are growing incredibly quickly.

Nikhil Giovanni: Our taxi business continues to.

Nikhil Giovanni: Grow we have the we're not even close to the majority of taxis in the world and as we add more taxi supply trip growth continues to grow and kind of extends the runway of our growth there and then of course shared.

Nicole: Gross bookings should you shouldn't be looking for a deceleration you should be looking for that trip growth continued to be led heavily by by audience growth and.

Nicole: And then we'll have to see what where the where the pricing opportunities continue to be provided by insurance.

Nikhil Giovanni: Right both in terms of high capacity vehicles that bring the price envelope down.

Dara Khosrowshahi: We have unique access to transportation inventory. We are global. Obviously, we have human drivers, we have AV drivers, we have food available, grocery available. So, I think we're kind of the partner of choice for many of these players. But right now, the focus is how do you build consumer experiences that are delightful, how do you make every single service of ours a little bit more optimized for consumers? And then, you know, we'll deal with the after effects later in terms of merchant concentration. It's just not something we're focused on right now. Prashanth, do you want to take the other one?

We have unique access to transportation inventory. We are global. Obviously, we have human drivers, we have AV drivers, we have food available, grocery available. So, I think we're kind of the partner of choice for many of these players. But right now, the focus is how do you build consumer experiences that are delightful, how do you make every single service of ours a little bit more optimized for consumers? And then, you know, we'll deal with the after effects later in terms of merchant concentration. It's just not something we're focused on right now. Prashanth, do you want to take the other one?

Nicole: I would just add in terms of mobility trip growth as well as that.

Nikhil Giovanni: And or ex share our product set essentially allow single driver to serve multiple riders as well. So we've got a business that continues to have a lot of growth runway, we're expanding into new markets, both geographically, but into less dense markets and there is a whole portfolio of newer.

Nicole: The base trip growth of core trip growth is super charge by the growth in less dense areas as well and some of the growth that we've had in terms of lower cost products.

Nicole: Two wheelers and three wheelers are growing incredibly quickly.

Nicole: Our taxi.

Nikhil Giovanni: Products that continue to grow faster than the core so to speak that have substantial runways.

Nicole: Business continues to.

Nicole: Grow we have the we're not even close to the majority of taxis in the world and as we add more taxi supply trip growth continues to grow and kind of extends the runway of our growth there and then of course shared.

Nikhil Giovanni: Ahead of them.

Nikhil Giovanni: In terms of frequency.

Nikhil Giovanni: In the less dense areas.

Prashanth Mahendra-Rajah: I will, I'll take the second one. Thank you for the question. Michael, maybe I could start with just a gentle correction to a comment made about deceleration. It may surprise folks to know that the vast majority of our top 20 cities are still continuing to grow at double digit rates. So we are still very, still seeing very strong growth in our core areas. But what we do see is we see the opportunity to increase the length of time that that core business can grow at attractive rates by investing into these sparse markets. And we're already seeing great indications, for example, in mobility. I think I had already mentioned that 20% of our trips are now coming from sparser markets and those are growing even faster than the urban core.

Nikhil Giovanni: The our less dense.

Initiative really started with delivery.

Nicole: Right both in terms of high capacity vehicles that bring the price envelope down.

Nikhil Giovanni: And what we're seeing is that and in those markets you actually typically have families ordering et cetera, and the frequency that we see in delivery.

Nicole: And or ex share our product set essentially allow.

Nicole: Well the driver to serve multiple waters as well. So we've got a business that continues to have a lot of growth runway, we're expanding into new markets, both geographically, but into less dense markets and there is a whole portfolio of newer products that continue to grow faster than the core so to speak.

Nikhil Giovanni: Continues to grow in both dense markets and less dense markets. So it's unclear as to whether our expansion into less dense markets.

Nikhil Giovanni: What hurt frequency on the delivery side, it's certainly frequency continues to increase and delivery. So we're very happy.

Nikhil Giovanni: As it relates to those results on mobility I do think that Youre right people will have car order ship will be higher in suburbs et cetera. So I would expect frequency in mobility as we expand into these lower depths less dense areas too.

Nicole: That have substantial runways.

Nicole: Ahead of them.

Nicole: In terms of frequency.

Nicole: In the less dense areas.

Nicole: The our less dense initial.

Prashanth Mahendra-Rajah: Having said all that, I think the way to maybe to capture all this is once these markets hit sort of the full investment profile and they're running well. Margins are very much in line with what we see in our other markets. And the rate at which we're investing is where we're launching hundreds of new cities in 2025. So there's plenty of room for us to run here. Obviously there's an investment period before they achieve those more continuity level margin profiles, but that's all part of the growth opportunities that we see in front of us.

Having said all that, I think the way to maybe to capture all this is once these markets hit sort of the full investment profile and they're running well. Margins are very much in line with what we see in our other markets. And the rate at which we're investing is where we're launching hundreds of new cities in 2025. So there's plenty of room for us to run here. Obviously there's an investment period before they achieve those more continuity level margin profiles, but that's all part of the growth opportunities that we see in front of us.

Nicole: Initiative really started with delivery.

Nikhil Giovanni: To be a headwind I do think that price will be a tailwind.

Nicole: And what we're seeing is that in those markets.

Nikhil Giovanni: Especially as it relates to reserve and.

Nicole: We typically have families ordering et cetera, and the frequency that we see in delivery.

Nikhil Giovanni: Some of these markets people kind of.

Nikhil Giovanni: Use reserve in order to drive reliability in the suburbs.

Nicole: Continues to grow in both dense markets and less dense markets. So it's unclear as to whether expansion into less dense markets.

Nikhil Giovanni: About 40% of reserve trips are now not related to travel as well, so it's becoming kind of everyday habit going out to dinner and I do think that the concentration of reserve in these less dense markets is going to be higher.

Nicole: Hurt frequency on the delivery side, it's certainly frequency continues to increase and delivery. So we're very happy.

Nicole: As it relates to those results on mobility I do think that Youre right people will have car order ship will be higher in suburbs et cetera. So I would expect frequency in mobility as we expand into these lower depths less dense areas too.

Nikhil Giovanni: That in urban markets as people are willing to pay a premium for higher reliability in these less dense markets.

Balaji Krishnamurthy: Great operator, we'll take your last question, please.

Nikhil Giovanni: So I do think frequency will be lower but I think pricing and margins.

Operator: Your last question comes from the line of Nikhil Devnani with Bernstein. Please go ahead. Hi, thanks for taking my questions. I have two on mobility, please.

Nikhil Giovanni: As it relates to a product mix will be higher.

Nikhil Giovanni: Thank you both.

Nicole: To be a headwind I do think that price will be a tailwind.

Nikhil Giovanni: Alright, I think thats it.

Dara Khosrowshahi: First, how should we think about the?

Nikhil Devnani: First, how should we think about the slope of deceleration in mobility Gross Bookings over the next year Q1 stepped down by several points and maybe that's just pricing and mix given. The trip growth comments. How do we get comfortable with? Mobility bookings, not decelerating more aggressively here. In the quarters to come and then. Separately, a follow-up on the less dense markets. Do you think the frequency opportunity in these markets is the same as your larger cities? I would imagine there's far more car ownership and some reliability differences. So how do you think about the opportunity set on a frequency basis relative. To your core urban centers? Thank you.

Nicole: Especially as it relates to reserve and some of these markets people caught it.

Speaker Change: Operator for the call. Thank you everyone for joining us this quarter and a huge thank you to the Hooper team as well as our partners. None of this would be possible without the hard work of your team of the team. So thank you to the team and we'll see you next quarter and hopefully this will be the start of a strong year for the company.

Operator: Slope of deceleration in mobility Gross Bookings over the next year?

Nicole: Use reserve in order to drive reliability in the suburbs.

Dara Khosrowshahi: Q1 stepped down by several points and.

Operator: Maybe that's just pricing and mix given.

Nicole: About 40% of reserve trips are now not related to travel as well, so it's becoming kind of the everyday habit going out to dinner and I do think that the concentration of reserve in these less dense markets is going to be higher.

Dara Khosrowshahi: The trip growth comments.

Balaji Krishnamurthy: How do we get comfortable with?

Operator: Mobility bookings, not decelerating more aggressively here.

Dara Khosrowshahi: In the quarters to come and then.

This concludes today's conference call. Thank you for joining you may now disconnect.

Operator: Separately, a follow-up on the less dense markets. Do you think the frequency opportunity in these markets is the same as your larger cities? I would imagine there's far more car ownership and some reliability differences. So how do you think about the opportunity set on a frequency basis relative.

Nicole: That in urban markets as people are willing to pay a premium for higher reliability in these less dense markets.

Nicole: I do think frequency will be lower but I think pricing and margins.

Nicole: As it relates to a product mix will be higher.

Dara Khosrowshahi: To your core urban centers?

Operator: Thank you.

Speaker Change: Thank you both.

Prashanth Mahendra-Rajah: Thanks Nikhil. I'll start and then hand off to Dara. I think the, you know, if you go back to the algorithm it is bookings equals trips times our average, our average price. If you look at the strong growth that we've been putting up over the last several quarters, those have all been built on top of a 19% year over year trip growth for the last three quarters. Our indication is that Q2 is going to be in similar vein. The contributor to those trip growth continues to be heavily led by audience growth. So that narrowing of the delta between trips and gross bookings is coming from, as I mentioned, a little bit of mix because we saw higher international mix and the favorable versus expected delta on insurance costs.

Speaker Change: Alright, I think thats it.

Speaker Change: Operator for the call. Thank you everyone for joining us this quarter and a huge thank you to the Uber team as well as our partners. None of this would be possible without the hard work of your team.

Speaker Change: Team. So thank you to the team and we will see you next quarter and hopefully this will be the start of a strong year for the company.

Speaker Change: This concludes today's conference call. Thank you for joining you may now disconnect.

Speaker Change: Yeah.

Speaker Change:

Speaker Change: [music].

Speaker Change: Yeah.

Prashanth Mahendra-Rajah: So we would sort of, I guess, softly let you think about balance of year gross bookings. You should, you shouldn't be looking for a deceleration, you should be looking for that trip growth to continue to be led heavily by audience growth. And then we'll have to see what, where the pricing opportunities continue to be provided by insurance.

So we would sort of, I guess, softly let you think about balance of year gross bookings. You should, you shouldn't be looking for a deceleration, you should be looking for that trip growth to continue to be led heavily by audience growth. And then we'll have to see what, where the pricing opportunities continue to be provided by insurance.

Dara Khosrowshahi: And Nikhil, I'd just add in terms of mobility trip growth as well: that the base trip growth, the core trip growth is supercharged by the growth in less dense areas as well. And some of the growth bets that we've had, you know, in terms of lower cost products, two wheelers, and three wheelers are growing incredibly quickly. Our taxi business continues to grow. You know, we have the; we're not even close to the majority of taxis in the world. And as we add more taxi supply, trip growth continues to grow. It kind of extends the runway of our growth there. And then of course shared, you know, rides both in terms of high capacity vehicles that bring the price envelope down and or X share are products that essentially allow, you know, single driver to serve multiple riders as well.

Dara Khosrowshahi: So we've got a business that continues to have a lot of growth runway. We're expanding into new markets both geographically but into less dense markets. And there's a whole portfolio of newer products that continue to grow faster than the core, so to speak, that have substantial runways ahead of them in terms of frequency in the less dense areas, you know. Our less dense initiative really started with delivery. And what we're seeing is that in those markets, you know, you actually typically have families ordering, etc. And the frequency that we see in delivery continues to grow in both dense markets and less dense markets. So it's unclear as to whether expansion into less dense markets would hurt frequency on the delivery side. It certainly frequency continues to increase in delivery, so we're very happy as it relates to those results.

So we've got a business that continues to have a lot of growth runway. We're expanding into new markets both geographically but into less dense markets. And there's a whole portfolio of newer products that continue to grow faster than the core, so to speak, that have substantial runways ahead of them in terms of frequency in the less dense areas, you know. Our less dense initiative really started with delivery. And what we're seeing is that in those markets, you know, you actually typically have families ordering, etc. And the frequency that we see in delivery continues to grow in both dense markets and less dense markets. So it's unclear as to whether expansion into less dense markets would hurt frequency on the delivery side. It certainly frequency continues to increase in delivery, so we're very happy as it relates to those results.

Dara Khosrowshahi: On mobility, I do think that you're right. People will have car ownership will be higher in suburbs, et cetera. So I would expect frequency and mobility as we expand into these lower dense, less dense areas to be a headwind. I do think that price will be a tailwind, especially as it relates to reserve. In some of these markets, people kind of use reserve in order to drive reliability. In the suburbs, about 40% of reserve trips are now not related to travel as well. So it's becoming kind of a everyday habit going out to dinner. And I do think that the concentration of reserve in these less dense markets is going to be higher than in urban markets as people are willing to pay a premium for higher reliability in these less dense markets.

On mobility, I do think that you're right. People will have car ownership will be higher in suburbs, et cetera. So I would expect frequency and mobility as we expand into these lower dense, less dense areas to be a headwind. I do think that price will be a tailwind, especially as it relates to reserve. In some of these markets, people kind of use reserve in order to drive reliability. In the suburbs, about 40% of reserve trips are now not related to travel as well. So it's becoming kind of a everyday habit going out to dinner. And I do think that the concentration of reserve in these less dense markets is going to be higher than in urban markets as people are willing to pay a premium for higher reliability in these less dense markets.

Dara Khosrowshahi: So I do think frequency will be lower, but I think pricing and margins as it relates to product mix will be higher.

So I do think frequency will be lower, but I think pricing and margins as it relates to product mix will be higher.

Balaji Krishnamurthy: Thank you both.

Nikhil Devnani: Thank you both.

Dara Khosrowshahi: All right, I think that's it. Operator for the call. Thank you everyone for joining us this quarter, and a huge thank you to the Uber team as well as our partners. None of this will be possible without the hard work of your team, of the team. So thank you to the team, and we'll see you next quarter. Hopefully this will be the start of a strong year for the company.

Operator: This concludes today's conference call. Thank you for joining. You may now disconnect.

Q1 2025 Uber Technologies Inc Earnings Call

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