Earnings call transcript: Uber Q2 2025 beats forecasts, stock dips slightly

Uber Technologies Inc. (UBER), with a substantial market capitalization of $187 billion, reported its second-quarter earnings for 2025, surpassing Wall Street expectations with an earnings per share (EPS) of $0.63, slightly above the forecasted $0.62, marking a 1.61% positive surprise. Revenue also exceeded predictions, coming in at $12.7 billion compared to the expected $12.47 billion, a 1.84% surprise. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with the stock experiencing a slight dip in premarket trading, down 0.21% to $89.20.

Key Takeaways

• Uber’s Q2 earnings and revenue surpassed forecasts, with EPS at $0.63.
• The company announced a $20 billion share repurchase authorization.
• Stock price slightly decreased by 0.21% in premarket trading.
• High growth in Uber One membership and premium business segments.
• Continued focus on autonomous vehicle partnerships and platform integration.

Company Performance

Uber’s performance in Q2 2025 demonstrated robust growth, with notable increases in trips and gross bookings, both up by 18%. The company achieved record highs in adjusted EBITDA of $4.58 billion, GAAP operating income, and free cash flow of $7.79 billion. InvestingPro data shows impressive revenue growth of 17.6% over the last twelve months, with total revenue reaching $45.38 billion. This growth aligns with Uber’s strategy of enhancing cross-platform engagement and expanding its audience reach, as only 20% of consumers aged 18+ in top markets currently use Uber monthly.

Financial Highlights

• Revenue: $12.7 billion, exceeding the forecast of $12.47 billion.
• Earnings per share: $0.63, above the $0.62 forecast.
• Uber One membership grew by 60% to reach 36 million members.
• Premium business segment exceeded $10 billion, growing 35%.

Earnings vs. Forecast

Uber’s actual EPS of $0.63 surpassed the forecasted $0.62, resulting in a 1.61% positive earnings surprise. Revenue also beat expectations, with a 1.84% surprise. This marks a continuation of Uber’s trend of meeting or exceeding market expectations in recent quarters, reflecting strong operational execution and strategic focus.

Market Reaction

Despite the positive earnings report, Uber’s stock fell by 0.21% in premarket trading, reaching $89.20. This slight dip comes after a previous close of $89.39. The stock remains within its 52-week range of $59.33 to $97.72, showing remarkable momentum with a 27.7% gain over the past six months. InvestingPro analysis reveals strong financial health metrics, with an overall score of 3.35 out of 5, labeled as "GREAT." The stock trades at a P/E ratio of 15.5x, reflecting investor confidence in the company’s growth trajectory.

Outlook & Guidance

Looking ahead, Uber projects high teens growth in gross bookings and low to mid-30s growth in EBITDA for Q3 2025. The company is also exploring new autonomous vehicle (AV) business models and expanding partnerships with firms like Waymo and Baidu. With a healthy current ratio of 1.02 and moderate debt levels, Uber plans to return 50% of its free cash flow to shareholders through buybacks. For deeper insights into Uber’s financial health and growth prospects, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports.

Executive Commentary

CEO Dara Khosrowshahi emphasized Uber’s supply-led strategy, stating, "The more drivers there are in the ecosystem that we can amalgamate, with our platform, the better our service becomes." CFO Prashant Mahendra Raja highlighted the company’s commitment to shareholder returns, saying, "Returning that cash to our shareholders is a key priority for us."

Risks and Challenges

• Market saturation in major regions may limit user growth.
• Regulatory challenges in key markets could impact operations.
• Dependence on autonomous vehicle partnerships introduces uncertainty.
• Economic downturns could affect consumer spending on mobility services.
• Competition from other mobility and delivery platforms remains intense.

Q&A

During the earnings call, analysts inquired about Uber’s autonomous vehicle commercialization plans and share repurchase strategy. Executives detailed the company’s approach to AV partnerships and cross-promotion, emphasizing the potential for long-term growth and innovation in these areas.

Full transcript - Uber Technologies Inc (UBER) Q2 2025:

Conference Operator: Hello, and welcome to the Uber Second Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. I would now like to turn the conference over to Balaji Krishnamurti, Vice President, Investor Relations. You may begin.

Balaji Krishnamurti, Vice President, Investor Relations, Uber: Thank you, operator. Thank you for joining us today, and welcome to Uber’s second quarter twenty twenty five earnings presentation. On the call today, we have Uber’s CEO, Dara Khajra Shahi and CFO, Prashant Mahendra Raja. During today’s call, we will present both GAAP and non GAAP financial measures and additional disclosures regarding these non GAAP measures, including a reconciliation of GAAP and 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. Actual results may differ materially from these forward looking statements, and we do not undertake any obligation to update any forward looking statements we make today, except as required by law. For more information about factors that may cause actual results to differ materially from forward looking statements, please refer to the press release we issued today as well as risks and uncertainties described in our most recent Form 10 ks and in 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.

Dara Khosrowshahi, CEO, Uber: Thanks, Balaji. Q2 was another quarter of new records for Uber as we achieved all time highs in both audience and frequency. This powered robust growth in trips and gross bookings both up 18%. We also reached new highs for adjusted EBITDA, GAAP operating income and free cash flow. We’re expecting more of the same strong performance in Q3 with another quarter high teens gross bookings growth and low to mid-30s EBITDA growth.

We’ve already made great progress harnessing the unique power of our platform to foster deeper engagement with our consumers who visited our apps nearly 30,000,000,000 times over the past twelve months, but we’re just scratching the surface of what’s possible. Today, fewer than one in five of our consumers are active across both mobility and delivery, and we believe this can and will go much higher over time. That’s one of the reasons I’m super excited that Andrew McDonald has stepped into the role of COO. One of Mac’s primary focus areas will be supercharging our platform strategy and the growth that it can bring with our mobility and delivery leaders now reporting directly to him as well as across platform efforts like advertising and autonomous. While we remain as focused as ever on our core business, we continue to push forward on building the future with AV and Q2 was jam packed.

We expanded our operating zones in Austin with Waymo and Abu Dhabi with ReRide and we also launched exclusively with Waymo in Atlanta. And at the same time, we announced several new and expanded partnerships including with Baidu, Lucid, Neuro, and Wave. Our autonomous momentum continues at Uber speed and we’ll be ramping those deployments significantly over the next few quarters in The US and internationally. Simply put, we’ve never been more excited about what Uber is delivering today or the many opportunities ahead. That’s why today we announced the new $20,000,000,000 share repurchase authorization as part of our sustained focus on value creation for shareholders.

With that, let’s go to questions.

Conference Operator: Thank you. Your first question comes from Eric Sheridan with Goldman Sachs. Line is open.

Eric Sheridan, Analyst, Goldman Sachs: Thanks so much for taking the questions. Tara, I want to follow-up on this theme you introduced around platform initiatives in the letter. When you think about the success you’re unlocking on the platform initiative side, how much of this in your early learnings continues to come down to consumer knowledge, array of supply or even affordability in terms of driving some of this cross platform behavior? And as you’re thinking as a company continues to evolve, how do you think about one single super app under the Uber brand as opposed to having multiple apps, with different utility experiences for consumers? Thanks so much.

Dara Khosrowshahi, CEO, Uber: Absolutely, Eric. It’s a great question and and something that, you know, honestly, we’re we’re learning as as we go. I think as as it relates to platform, you know, it’s easy to talk about, but it’s actually much harder to execute on the ground. You know, a pixel that we place on the mobility app that is, for example, promoting delivery a delivery feature could be, reducing the experience of the mobility app itself. So we have to make sure that we are cross promoting one service to the other, mobility to our Eats business or Eats business to grocery, you know, grocery user to to retail in a way that is targeted and in a way that is adding value for the consumer.

And the only way to get there is through, you know, super, super aggressive experimentation. The great news is that, you know, the the those who kind of use both sides, both mobility and delivery, their retention rates are higher. They’re 35% higher than single business consumers. They generate three times the gross bookings and profits than single business consumers as well. And that then allows us to market more aggressively uniquely because the vast majority of our competition is only monoline in terms of the business that they run.

So structurally for a subset of consumers, we can just pay more than anyone else can, and that’s a that’s, you know, that structural advantage is going to continue to to get better over a period of time. Now what we’re seeing now is, you know, a lot of people talk about AI, and and some of the AI applications are just larger models. Larger models that can take more, you know, context from a consumer, history of that consumer’s use, longer periods of time in terms of seasonality. And part of what we’re seeing in terms of the cross platform promotion is that we’re able to pick kind of the right time to send a promotion to you. So on your way to work, maybe you pick up a Starbucks coffee with a promotion attached to it.

Those kinds of magical experiences have to be hyper personalized, and, again, can be optimized as a result of of a bunch of optimization and and model kind of tuning work. I do think that, Andrew McDonald, Mac, we call him, heading both mobility and delivery kind of solve the structural problem. Because to some extent, you know, the teams who are optimizing for the mobility app, they just wanna optimize for mobility and for delivery even though they’re part of one company. Now both of those organizations are under one person, which structurally allows us to be more aggressive on the platform. And then as you know, mobile our membership program is a huge part of the platform, with Uber won 36,000,000 members, and these members spent, three times more.

We have been debating as to Eric, your question on the on the super app. We’ve been debating it internally. Now to some extent, when you go to the Rides app, it is a super app. You’ll see a you’ll see a delivery tab on the Rides app. We are building out experience if you, look at our supplemental, slides, which actually has delivery and grocery and a bunch of other choices on the Rides app.

And the Rides app today drive $10,000,000,000, bookings, or delivery kind of, bookings on the mobility app. It’s about 12% of annualized delivery gross bookings. So in some ways, we’re slowly kind of moving towards a super app of sorts, but what we’re trying to have is the best of both worlds. A highly tuned mobility app, a highly tuned delivery app, both of which talk to each other and take targeted moments to promote each other as opposed to kind of broad promotion that can seem like, you know, anti consumer to to some extent. This is a long journey.

I think we’re in the second inning. And with our product teams and our tech teams focused on it and Mac as the COO, I think, you know, the journey towards the fourth, fifth innings is gonna be easier than the first two innings, so to speak.

Michael Morton, Analyst, MoffettNathanson: Appreciate it. Thank you.

: You bet. Next question?

Conference Operator: The next question comes from Brian Nowak with Morgan Stanley. Your line is open.

Brian Nowak, Analyst, Morgan Stanley: Great. Thanks for taking my questions. I have two. The first one on the core platform. So the MAPC growth up $10,000,000 quarter over quarter and the Uber One member growth up 6,000,000 quarter over quarter, both were really good numbers, really good results.

So the question is, is there any changes that sort of came through this quarter that drove that faster growth? And how do we think about the the durability of this faster growth going forward? And then secondly, on autonomous, Zara, I think in the past, you talked about the number of, AV, rides deployed across the network, think, 1,500,000 last quarter. Any update on how large that is or ways we can think about quantifying the Waymo utilization on Uber’s network? Thanks.

Dara Khosrowshahi, CEO, Uber: Sure. Absolutely. So, Brian, in terms of audience growth, which which was super healthy at at 15%, You know, there are many ways in which we’re expanding audience, but I’d say one of the ways that that I would talk about is some of the lower cost product that we’re introducing. So for example, Moto, which are two wheelers that are coming in in a bunch of our developing markets now, it is over kind of 1 and a half billion dollars in gross bookings growing 40%. A bunch of them on the premium side as well, you know, our premium business is now over $10,000,000,000 growing 35%, and our reserve business continues to grow 60%.

So the strategy that you’re seeing from us, is to target consumers, different demographics, whether they’re demographics in terms of income, whether they’re demographics in terms of age, you know, building a team’s product or building a product for an elder audience, These are new consumers that are coming onto our platform. And then when they come into our platform, we find that they use multiple products per the discussion that that we have there. So we’ll get someone in on Moto. But if it’s date night or if it’s raining, they’ll use Uber apps, and they’ll start kinda get introduced into the platform as well. So we are very, very pleased in terms of audience.

And I would tell you that while a lot of people think, hey. You know, everyone that I know uses Uber, etcetera. In our top 10 markets, for consumers who are 18 years and older, only about 20% of them come to us on a monthly basis. So there’s a ton of audience that we can continue expanding into. And at this point, we’re not seeing any signal whatsoever, that audience growth is, is slowing down.

Uber One, we’ve been very, very happy about growing 60%, 36,000,000 members. I think one of the differences that you’re gonna see in Uber One is, Uber One has always been a huge hit as it relates to delivery. It has been a bit more difficult in terms of introducing it to the mobility audience. The incremental use, you know, on delivery showed up on day one. But on mobility, the incrementality as a result of Uber one has been something that we’ve had to work on.

One of the newer products that we’re very excited about is actually surge savings. This is the number one product that our mobility consumers have asked for. You know, surge is necessary for us to improve reliability across the network, but a lot of our users don’t like it, to be frank. So surge savings is the opportunity for members to save during those surges and, you know, kinda pay prices closer to what they’re used to, and we think that can drive membership as well. So one of the reasons why you’re seeing membership grow as fast as as it grows is while it’s highly optimized for delivery, call it, you know, 80% of where we’re gonna get to, In mobility, it’s, like, not nearly as optimized, and we’re very you know, much earlier kind of in the path in terms of introducing membership to our mobility users and coming out with kind of spectacular products like the search savings that we talked about.

So both early. The teams are doing well, and, you know, we expect that execution to continue. In terms of a AV, you know, they it is very, very early in terms of the development of AV. I think the commercialization is going to take time, but we’re gonna be in the lead in terms of commercialization. Austin launch continues to go really well in terms of utilization.

Atlanta launch has been it’s early, but the Atlanta launch has been great. And in both cases, the average Waymo is busier than 99% of our drivers in terms of completed trips per day. And then what we’re also seeing is that having Waymo’s as part of our product is it looks like it has kind of a positive halo effect on the overall system in terms of people being excited to use an AV. It’s certainly showing up in Austin. Too early to show up in Atlanta, but it’s something that we’re that we’re looking at closely.

And then, obviously, beyond Waymo, there’s a big ecosystem out there, Nameability, Avride, Volkswagen, NeuroLucid, and then a lot of players in the rest of the world. We ride Pony, Baidu, Wave, and Momenta. So lots of partnerships here. And really, the focus now is how do we bring this product to market as quickly as possible because it looks like from a consumer standpoint and from a safety standpoint, it’s a real hit. Alright.

Next question. You’re welcome.

Conference Operator: Thank you. Next question is from Michael Morton with MoffettNathanson. Your line is open.

Michael Morton, Analyst, MoffettNathanson: Hi. Good morning. Thank you for the question. Dara, maybe a great time to follow-up on those AV comments you just made. And I I wanted to dig in a little bit on the Lucid and Nora partnership that was announced.

There were some investor concerns that this partnership, in particular, with the capital around it, was a negative read through for the relationship with Waymo and then also just capital intensity a little surprising for marketplaces. Could you maybe speak to why this might not be the best framework for thinking about that partnership? And then some high level thoughts on how you’re you’re you’re envisioning owning some of the AV assets versus divesting them to fleet operators and how investors could expect to see this play out over the next several years? Thank you.

Dara Khosrowshahi, CEO, Uber: Yeah. Yeah. Absolutely, Mike Michael. Listen. We’re we’re very, very excited about the partnership with Neuro and Lucid.

Neuro is a leading software player, obviously, management, and Lucid as well, one of the leading EV manufacturers out there with great tech. So we we think it’s terrific. Listen. We I’ve said it before. We are a supply led company.

The more drivers there are in the ecosystem that we can amalgamate, with our platform, the better our service becomes, and that applies with robotic and autonomous drivers as well. So we are investing, absolutely investing in the software players and the hardware players to bring that to four. And the fact that we are able to work with neuro and lucid speaks very well to AV supply going forward. The more supply there is, both humans and AVs again, the better our our platform is. And I think from our standpoint, the good news is that, as you’ve seen with our cash flow and our capital allocation, we can afford to invest aggressively in the autonomous space and at the same time to return plenty of capital to our shareholders.

So it’s not an either or. I do think that you will see us do more deals like NeuroLucid in the early days of autonomous as we’re proving out the economics of the marketplace. How much can one of these cars make? Now the signal that we see with Waymo is based on the trips per day being at a ninety ninth percentile in terms of utilization, that news is great. So once we prove out the revenue model, how much these cars can generate on a per day basis, there will be plenty of financing to go around, third party financing.

We’ve talked to private equity players. We’ve talked to banks, etcetera. And while it while it will take some time, we’re very confident that these assets are gonna be financeable. And for us, we believe it’s a competitive advantage for us to be able to use, relatively modest part of our cash flow to fund kind of the catalyst getting started here. So we think it’s great news.

We’ve got, obviously, something approved to shareholders. We always do. But I think it reflects kind of the catalytic potential that we can bring to the market.

Prashant Mahendra Raja, CFO, Uber: Anything you wanna, talk to, Prashanth? Maybe just to maybe just to remind folks, as we’ve said in the past, that, as we think about our investments in AV, we wanna think about them in terms of where will we use capital to take equity positions in some of the software players or ecosystem players to help them, kick start their development, and where does Uber being, part of their cap table sort of add to their credibility. We’re gonna continue to recycle some of the proceeds from the minority stakes that we have to fund some of those investments. You’ve seen us do that already, and expect us to continue to do more of that over the over the coming quarters. Second, expect us to use some of our cash flow, in a more capital structure, as we may need to invest either in real estate, in facilities, or as we announced with Lucid actually in vehicles.

Exactly as Dara said, this is really to help us build our learning base and to build enough information for us to be able to engage more credibly with financing partners having run these at scale ourselves and then be able to to, bring them into, into the fold with real data on how, they can earn a return in this space. And then, and then lastly, is, is obviously AVs today are, are not profitable. That has been a pretty consistent, investment approach for Uber as we go into markets and go into products starting at a loss. We build scale. We build our experience.

And then over time, we know exactly the levers that are necessary to turn to get that to profitability. You’ve seen us do that in multiple growth bets, as well as in the delivery business when we started and expect that to be the same for AV. I’ll just call back to we announced a $20,000,000,000 authorization, today in part to make it clear that returning the cash generated from this enterprise to shareholders remains our number one concern. And, and so the investments that we’re gonna be making in this area are gonna pale sort of in comparison to that.

: Alright. Thanks for the question.

Dara Khosrowshahi, CEO, Uber: And can we get the next question?

Conference Operator: Next question comes from Justin Post with Bank of America. Your line is open.

Justin Post, Analyst, Bank of America: Great. Thanks. A couple more questions on AVs. In the letter, you talked about we are increasingly focused on broadening OEM partnerships. So really, maybe talk about that and your partnership pipeline here for the next six months or so.

And then second, with a lot of news about Tesla expanding, how do you think about that? And maybe just give us an update on your share and growth in in the San Francisco and LA markets. Thank you.

Dara Khosrowshahi, CEO, Uber: Yeah. Absolutely. So, Justin, in terms of OEMs, what we’re seeing is that the development of software actually, AV software, has really been accelerated based on these larger AI models. There are some approaches that are kind of perception models interpreting the world and then prediction models that decide what to do. Some players like Tesla and Way, for example, are going with single models.

But whatever the approach is, it is really accelerating in terms of time to market. And we actually think the harder part of commercialization is going to be hardware, bringing on hardware platforms and hardware partners that can build these platforms at scale affordably. Because today, at least, AV vehicles that are, able to be deployed at scale are pretty expensive. We’ve obviously made the lucid, the lucid announcement. We are talking to all of the major OEMs, in the space, and we’re confident that over the next couple of years, we will have OEM partners.

And, again, because we bring a ton of demand, we’ve got a great balance sheet that we can invest, you know, in order to prove out the financing of these of these models, we think we’re in a great position to do so. So stay tuned. You’ll see more announcements with OEM. And then there are certain players like the Baidu who also have established not just software platforms, but also hardware platforms that look to be effective at scale and quite affordably, which is terrific. You know, the Apollo go for is is one example of that.

And then in terms of Tesla, listen, we see them on on the streets right now. The deployment that we’re observing is very, very small. So we haven’t measured any change in terms of trends, both in Austin and or San Francisco. It’s something that we’ll watch. And and, again, we said it before, This is a very, very big market.

There will be no winner take all, and I think you’re going to see a lot of experimentation early on with lots of different models. Waymo’s working with us. Waymo is going direct. Our working with a number of other players, you’ll see a panoply of of models. But we are confident that based on our platform, based on our ability to balance kind of supply and demand peaks and valleys, we think we’ll be the leading third party platform out there.

And with the market that is gonna grow and expand the way a b promises to, I think we’ll be a winner, but we won’t be the only winner.

: Can we get the next question, please? Thank you.

Conference Operator: Next question comes from Doug Anmuth with JPMorgan. Your line is open.

Doug Anmuth, Analyst, JPMorgan: Thanks for taking the questions. I have two, one for Dara, one for Sean. Dara, just in terms of mobility, how are consumers responding to the pricing growth deceleration just tied to the moderating insurance pressures? And guess what gives you confidence in U. S.

Mobility trips accelerating in 3Q? And then, Prashanth,

Brian Nowak, Analyst, Morgan Stanley: is there any more color that

Doug Anmuth, Analyst, JPMorgan: you can add around the buyback and just kind of loosely how you think about overall time frame, just given that the $7,000,000,000, from a couple of years ago kind of started somewhat slowly. It’s it’s ramped more now, but any more color there would be helpful. Thanks.

Dara Khosrowshahi, CEO, Uber: Yeah. Doug, in terms of, I’ll answer the first one. In terms of, the response of pricing, it’s been really positive. So there is a sensitivity to pricing on kind of a session level. Right?

If someone sees a ride for $20 and then sees a ride for $17, the conversion on those two sessions are gonna be different. But there’s also the person who saw the $17 ride has a greater proclivity of coming back to us two days later, three weeks later, etcetera. So there’s kind of a delayed reaction to pricing, which we’re now able to with some of the data scientists out there, who are really terrific, we’re able to measure. And that’s exactly what we’re seeing in The US, which is if if you measure kind of bringing prices down, and I think the good news here, to be clear, is we’re just passing on these insurance savings. So our profit per ride in The US is up on a year on year basis.

This is, you know, it’s insurance money, pass right to consumers. What we’re seeing in The US is that, there are some session benefits or in session benefit, but there’s a delayed benefit to consumers then coming back with the app more. And that’s absolutely showing up in July where, transaction growth accelerated nicely versus q two. And our expectation based on our being able to continue to pass on insurance savings for the balance of the quarter is that the same trends are going to show up in the balance of the quarter. The trends generally are getting better, as the as the quarter progresses, which gives us confidence in q two, and hopefully, that’ll continue into q four.

Sorry, q three and then, go into q four. Prashanth, you wanna take the next one? Yeah.

Prashant Mahendra Raja, CFO, Uber: Thank you. Thanks, Tara. So, Doug, maybe a couple points on on the buyback to help folks, understand how we think about it. As this business has inflected and we have started to generate meaningful cash flow, returning that cash to our shareholders is a key priority for us. We’ve but we’ve already, executed over 60% of our authorization from, from last spring when it was when it was originally authorized.

So today’s 20,000,000,000, is in addition to the roughly 3,000,000,000 that is yet to be executed. So I know that sometimes folks get get confused on that. So think of it as 23,000,000,000 to execute over the next, next couple of periods here. That represents about 12% of our market cap, and really is a reflection of of how great we feel about the cash flow generation that’s in front of us. So if you look, if you look at our history now, we’ve been allocating around 50% of our free cash flow to buybacks.

I think that’s a fair sort of way for you to think about how we will how we will execute the, the, capital return over the over the coming years. That gives us also a good sort of way to to to benchmark how we wanna design our programs every quarter. So you should expect this to be sort of a multiyear plan. We will be active every quarter. But, of course, we always reserve the opportunity that if there is a meaningful dislocation, we’re gonna get very opportunistic in the market.

And and just a reminder that we made a commitment last year in our investor day that we were going to, turn the curve and start reducing our share count. And now in the, in the second quarter, we’ve actually taken share count down a percent, and you’ll see that trend continue for the next couple of years. Next question, please.

Dara Khosrowshahi, CEO, Uber: Great. Thank you, both.

Conference Operator: Next question comes from Ross Sandler with Barclays. Your line is open.

Balaji Krishnamurti, Vice President, Investor Relations, Uber0: Great. This is probably for Prashant. But could we put a dollar amount on the vehicle commitment from these OEM partnership deals over the next few years? Or is there a framework that we can think about this? Is this hundreds or or thousands of vehicles per partnership?

I know the Lucid deal had that 20,000 vehicle commitment. Like, how how much do you think Uber will be taking on of that 20,000? And and then the second part of the question is just it seems like the Waymo partnership is more of an asset light version of this. So how how important is expanding with Waymo in in new cities beyond the two that have been announced? Thank you.

Prashant Mahendra Raja, CFO, Uber: Thanks, Rob. I’m gonna take the first part of that, and I will I’ll let Dara take the second part of that. I think probably the best way to think about, about the the investments, going back to, I think, what I said for Doug earlier is, we are committing that at least half of our cash flow generation over the coming years will go to share repurchase, and that’s sort of the the message we wanted to send with that very strong $20,000,000,000, share repurchase. We will recycle the proceeds from my from our minority stakes as best as those are opportunistic to allow us to fund some of the equity investments in our AV players. So for us, the, what we’ve concluded is a modest redeployment of our free cash flow makes a big difference for the partners that we are working with.

So I would, I would think more about the impact that we can create with our partners, which is outsized reflective of the amount of cash flow we’re generating. So I wouldn’t I I don’t wanna give you a size on it except to say that, that you should be comfortable that a lot of our cash will continue to go back to shareholders. As Dara, mentioned, I think, earlier that, or he might have might have been on CNBC this morning, that, we will always continue to look at at inorganic moves that make sense for us, like the TrindleGo deal that we did last quarter, which has been which has been great for us on growth. And then beyond that, that leaves us some some capacity to continue to help build out this ecosystem. And then with with the question on Waymo, let Dara take that one.

Yeah. Absolutely. So in in general, in terms

Dara Khosrowshahi, CEO, Uber: of Waymo, Ross, really our focus is making sure that we’re executing incredibly well on the deployments that we have now, both in terms of Austin and Atlanta, and both are going really well. We would love to have more Waymo’s on our platform both in Austin and Atlanta and in additional cities, but I don’t wanna comment on, you know, when and if that’s going to happen. But clearly, it’s something that our consumers love, and, the Waymo’s on the Uber network are very, very busy and and producing economic value. And so, hopefully, you know, we certainly know we’re going to expand in the cities that we’re in, and, we’ll have more to tell you over a period of time. In terms of the the specific business model, again, I don’t wanna comment on that, but I would tell you that we see kind of three different business models coming in generally depending on whom we’re working with.

There’s gonna be what I would call the merchant model. And under merchant model, we will essentially pay a partner a certain dollars per per trip per day or dollar per day. And so the partner will have a kind of revenue that is very, very predictable, and we will take the risk on monetizing our network. And, again, we have more demand than anyone else, so we will be able to, I think, sign up for revenue levels that other people just can’t. So the merchant model really kinda creates an advantage, advantage for us.

Then there’s an agency model. Agency model, think about it as a rev share. It’s kind of the model that we have with our driver partners now. You know, driver takes a certain percentage. We take a certain take rate as well, and you essentially have a revenue share based on and if you do well in a market, that’s great.

If you do less on a market, it’s it’s kind of risk sharing. Then there’s another model which where we might or financing partner might own the assets. And then, essentially, you know, you’re buying cars, and then there will be a licensing model as it relates to the software. So there’ll be a certain you know, whether it’s monthly licensing or per mile licensing, you can imagine lots of different, lots of different models out there. So those, I think, are how the marketplace is gonna shape up.

I think you’ll see all three of those models in our marketplace over the next five years, and it’s gonna depend on really the needs of our partner. But we’re very confident as as to being able to kind of build the most robust economic, and operational ecosystem as it relates to AV, within the Uber network.

Prashant Mahendra Raja, CFO, Uber: Anything to add, Prashant? Yeah. I think, Ross, maybe just circling back to you to the to the first answer I gave you, one, element I probably should have added is I wouldn’t conclude that, that by purchasing vehicles, the economics, are going to be worse. In fact, our our, analysis is that the Neuralucid deal will probably yield better economics for us because, because of it’s a collective deal, and we just get the efficiencies of having the vehicle and having the the software integration in there. So our view is actually we’re probably gonna do better on that from an economic standpoint.

Balaji Krishnamurti, Vice President, Investor Relations, Uber0: Thank you.

Balaji Krishnamurti, Vice President, Investor Relations, Uber: Operator, we’ll take the last question.

Conference Operator: Thank you. Your last question will come from Benjamin Black with Deutsche Bank. Your line is open.

Michael Morton, Analyst, MoffettNathanson: Great. Thank you for taking the

: questions. Dara, you mentioned the barbell strategy within U. S. Mobility. I guess when you look across the spectrum of opportunities across the curve, where do you see the greatest incremental opportunity for mobility in The U.

S? Is this more sort of on the lower priced offerings? Or is it still a lot of room to run on the higher end as well? And then can you speak a little bit deeper into your comments around externalizing your technical capabilities in the letter? You know, are you are you talking about data licensing opportunities within AV?

And and if so, you know, how how big could that become? Thank you.

Dara Khosrowshahi, CEO, Uber: Yeah. Absolutely. Ben, I’d say in terms of the barbell strategy, it is both. It it is low cost and premium. I would say that premium is easier to execute on.

You know, there is clearly a consumer want in terms of paying more for higher reliability. That’s essentially what the reserve product is. And or paying more for an extra car, which is kind of the premium product. I would also say that our Uber for business business is also growing nicely over 30% on a year on year basis. So I think premium near term in terms of profitability is has higher potential, call it, over the next three years.

The lower cost product is a harder product for us to pull off and because we have to kinda drive efficiency across the network. And, you know, one of those instantiations is wait and save, where you accept lower reliability and and as the results are able to pay less, or our Uber share product where essentially your you know, you will take maybe a longer ride, maybe a little bit of a detour sharing a car with someone else and, again, saving money on that. The lower end product, I think, ultimately, is kind of the greater opportunity in terms of trips, in terms of TAM. But over the next three years, our lower end product is costing us a margin that we think is appropriate in terms of the investments that we’re making in in our future. Expect us to continue on the barbell strategy, and you’ll see similar things as it relates to our delivery business.

Priority delivery, you know, paying up for priority delivery in order to get your delivery faster or accepting some delay in your delivery and, again, saving some cost. So this barbell strategy is something that we’re using both in mobility and delivery, and and they both carry significant promise there. In terms of externalizing our tech tech capabilities, this is something that I’m really excited about. And and just like a really simple example is our advertising business and our direct business. If you think about Uber Eats, there are two pieces of value that Uber Eats brings.

There’s audience to an SMB restaurant that it brings, and then there’s fulfillment capability, which is getting the food to the home. And we separate separated those two capabilities into an advertising business that’s growing incredibly healthy, very, very high margin, and a direct business where essentially we, deliver on demand for our customers who may have brought those consumers to their front door, on their own through through their through their own app. You should expect to see more of that. So, for example, data collection for AV is absolutely something that we’re working on. I say it’s not really something that I’m looking to make profits on, but really helping AV get to market faster.

And then one area that we’re really excited about is kind of one way to look at Uber is it is a platform for work. We’ve got almost 9,000,000 people who are earning on our platform, and they can earn in different ways other than driving or transporting things. An example of that is actually our Uber AI solutions, which is one of the really exciting parts of our business growing very quickly off of too small a base. I tell that team at this point, But they are engaging in data labeling, translation, map labeling, tuning algorithms, etcetera. And these are, sometimes drivers on our platform, sometimes kind of specialists that we bring onto the platform.

But it’s using the core Uber capability, which is, sending out tasks to earners all over the world. You’re just gonna see a different kind of earner, that is going to work for kind of the really exciting, kinda AI developments that you see all over the world. So that is an exam another example of our externalizing our platform, and, it’s it’s we are we are many conversations with their tech teams as to what else we can do with their platform capabilities globally. So it’s something that we’re quite excited about.

Prashant Mahendra Raja, CFO, Uber: Alright. I think is that it, Balaji? Yeah.

Balaji Krishnamurti, Vice President, Investor Relations, Uber: Let’s let’s drop it up there.

Dara Khosrowshahi, CEO, Uber: Alright, everyone. Thank you very much for joining us. We really appreciate your taking the time, and a big thank you to the Uber teams. Know, Balaji and Prashanth and I get to talk about the results, but it’s the teams on the ground who are delivering every day. So special thank you to all the teams who delivered another great quarter for us.

Thanks, everyone, and we’ll talk to you next quarter.

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

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