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Speaker 1: Another big story, of course, that we're watching is Uber

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Speaker 1: earnings out the stock, lowesst and disappointment on the street.

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Speaker 1: With that in mind, we welcome our Bloomberg radio and

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Speaker 1: television audiences worldwide joining us now. The CEO of Uber,

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Speaker 1: Dara Koshashahi and Bloomberg's Emily chang with me on set

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Speaker 1: in San Francisco.

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Speaker 2: Emily, thank you, and Dara, thank you so much for

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Speaker 2: joining us. It's good to have you back. Look, I

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Speaker 2: think investors are reacting to a bit of a revenue miss,

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Speaker 2: but your first gap profit reported ever. Talk to us

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Speaker 2: a little bit about the discipline here and what kind

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Speaker 2: of choices you had to make to make this happen

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Speaker 2: in this macro environment.

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Speaker 3: Yeah. Absolutely, we're very excited about this.

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Speaker 4: It's a seminal moment for Uber to deliver gap operating profits,

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Speaker 4: free cash role of over a billion dollars just in

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Speaker 4: the quarter, along with a really strong, strong top line.

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Speaker 4: You look at a gross booking straw that was thirty

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Speaker 4: thirty three point six billion dollars, up eighteen percent on

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Speaker 4: a constant currency basis. So I think the results, both

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Speaker 4: in terms of the top line and the bottom line

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Speaker 4: have been second to none and certainly leading in our industry.

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Speaker 4: And it has taken a lot of cost discipline in

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Speaker 4: terms of really looking at making that perfect match between

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Speaker 4: a rider and a driver, or an eater and a

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Speaker 4: courier and a restaurant, and making sure everything in that

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Speaker 4: transaction happens perfectly with no errors, no mistakes, no cancelations,

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Speaker 4: et cetera. And at the same time it takes a

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Speaker 4: lot of cost discipline. In terms of overheads. Our headcount

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Speaker 4: has been flat, and if you look at our headcount

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Speaker 4: compared to twenty nineteen pre pandemic, our total cat count

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Speaker 4: is up ten percent during those years, and our growth

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Speaker 4: bookings in the core business has been up eighty percent

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Speaker 4: versus headcount growth of ten percent. So it absolutely has

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Speaker 4: taken that discipline. But at the same time, the company

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Speaker 4: continues to innovate and gain category position, which is what

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Speaker 4: it's all about.

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Speaker 2: Now. You formally announced that CFO Nelson Chai will be

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Speaker 2: leaving the company, which Bloomberg reported a few weeks ago.

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Speaker 2: What is the interim plan and what are you looking for?

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Speaker 2: Will this be an internal hire and external hire?

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Speaker 4: Yeah, so Nelson is going to be staying with us

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Speaker 4: really through the balance of the year up until early

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Speaker 4: January to make sure that we have a smooth succession plan.

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Speaker 4: The next CFO is in seat and can be coached

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Speaker 4: by Nelson as well. And really what I'm looking for

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Speaker 4: is another partner like Nelson. You know, Nelson came in

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Speaker 4: in a very difficult time and teamed up with myself

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Speaker 4: and the rest of the team, taking us through an

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Speaker 4: environment of deep operating losses, taking us through the IPO,

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Speaker 4: getting us a really strong balance sheet so that we

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Speaker 4: could come out of the IPO and could deal with

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Speaker 4: issues like the pandemic to where we are, which is

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Speaker 4: a leading company. The next five years of her journey

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Speaker 4: are about scaling and becoming that true global platform that

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Speaker 4: can grow top line in a twenty percent range, can

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Speaker 4: continue to innovate and continue to drive the kinds of

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Speaker 4: margins and the incremental margin growth that we've been driving. Historically,

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Speaker 4: we told investors that incremental margins is a percentage of

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Speaker 4: growth bookings growth will be seven plus percent, and consistently

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Speaker 4: we've come in above that because we've been innovating but

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Speaker 4: at the same time been disciplined at the bottom line.

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Speaker 4: I'm looking for a partner who can deliver kind of

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Speaker 4: the next chapter of our growth, just like Nelson did,

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Speaker 4: Ubertotat also to speak.

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Speaker 2: So let's talk about the executives suite, the broader executives

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Speaker 2: WIT in that next chapter. Your CTO left back in

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Speaker 2: twenty twenty one was not replaced. How are you thinking

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Speaker 2: about that role? Is there anyone particular in mind?

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Speaker 4: We actually our tech team is led by three to

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Speaker 4: five leaders. Sinji Jaine, who's our chief product officer, really

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Speaker 4: thinking about the rider app, driver, app, eater, app.

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Speaker 3: Et cetera.

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Speaker 4: Gus Foldner who's thinking about the core services, customer service, safety, insurance,

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Speaker 4: et cetera. And then Albert Greenberg, who runs the infrastructure.

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Speaker 4: You know, we are at a core a technology company,

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Speaker 4: and instead of having one tech leader, we have three

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Speaker 4: tech leaders, and that team has come together to drive

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Speaker 4: outsize innovation. When you look at driver upfront fares, when

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Speaker 4: you look at our Uber teens product, when you look

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Speaker 4: at taxi hailables, low cost, our entry into new verticals,

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Speaker 4: there's no company in the industry that's innovating at our

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Speaker 4: speed or scale. And it's thanks thanks to the tech

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Speaker 4: leaders that we have in house at this point.

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Speaker 1: To our global radio and television audience, you're listening to

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Speaker 1: our conversation with the CEO, Dara Koshushahi following that earning sprint.

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Speaker 1: You know, Dara, I look at the quarter gone number

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Speaker 1: of trips, gross bookings, active drivers, demand and supply side

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Speaker 1: all at records strong gross booking forecast. Why wasn't that

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Speaker 1: enough to kind of raise expectations for adjusted a bit

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Speaker 1: DON next year You'd said in February, I believe it'd

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Speaker 1: be around five billion.

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Speaker 4: Well, I'm not a stock analyst. I can focus on

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Speaker 4: running the company. H And we guided for Q three

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Speaker 4: adjusted EBITDA well above street estimates. We got her for

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Speaker 4: nine hundred and seventy five million to a billion twenty five,

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Speaker 4: which was a substantial increase versus expectations out there.

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Speaker 3: And consistently, if you look.

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Speaker 4: At our track record, we've put out targets, we've consistently

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Speaker 4: beaten those targets, you know, by anywhere five ten plus percent.

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Speaker 4: And we intend to beat that five billion dollar target,

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Speaker 4: just as we've beaten every single target that we put

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Speaker 4: in front of our investor. So we think continued discipline, execution, strongths,

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Speaker 4: top line growth, increased margins.

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Speaker 3: And more of the same along.

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Speaker 4: With innovation is going to get us well beyond the

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Speaker 4: five billion dollars.

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Speaker 1: The innovation piece really interesting. I liked Emily's question about

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Speaker 1: the tech leadership. M's been all around San Francisco and

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Speaker 1: a cruise. I've been all around San Francisco and a weyman,

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Speaker 1: and I appreciate for our audience around the world. Jumping

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Speaker 1: in a robotaxi with no driver is not yet a reality,

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Speaker 1: but for lots of people that I asked on thread's

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Speaker 1: Twitter LinkedIn, that's their question for you, Dara, when is

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Speaker 1: Uber going to take that fleet of autonomous vehicles as

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Speaker 1: more of a priority.

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Speaker 4: Well, we are very bullish on autonomous It's taking time.

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Speaker 4: We have to make sure that the technology is saved

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Speaker 4: and we're partnering amongst all of the significant verticals that

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Speaker 4: we have. What are the unique aspects of ubers. Not

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Speaker 4: only are we global, not only are we the largest

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Speaker 4: platform with the biggest audience one hundred thirty seven million

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Speaker 4: consumers coming to us every single month, but we operate

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Speaker 4: in every significant vertical for autonomous passenger vehicles with Uber delivery,

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Speaker 4: food and grocery delivery, delivery with eats, and then trade

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Speaker 4: as well. Autonomous trucks are absolutely going to be a

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Speaker 4: big part of our future. And if you look at

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Speaker 4: each one of those verticals, we're partnering with leading companies

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Speaker 4: Waymo for example in passenger vehicles, neuro and Serve, amongst

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Speaker 4: others in delivery, and then in trucking of course Aurora,

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Speaker 4: with which we have a strategic investment as well. So

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Speaker 4: we absolutely believe that autonomous is going to be part

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Speaker 4: of the future and we are working to expose our

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Speaker 4: leading marketplace to autonomous technology as it develops in a safe,

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Speaker 4: efficient manner.

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Speaker 2: Well, speaking of another kind of technology, artificial intelligence to

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Speaker 2: cards now out with the chatbot door dash as well.

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Speaker 2: Is there an Uber bought in the works?

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Speaker 4: There's definitely going to be an Uber bought in the works.

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Speaker 4: But I tell you that we have been working with

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Speaker 4: machine learnings, artificial intelligence systems deep learning systems for years and.

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Speaker 3: Years and years.

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Speaker 4: Every time you get matched up with a car or

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Speaker 4: get matched up with a courier, there are mL algorithms

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Speaker 4: that are making that match. The pricing that happens time

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Speaker 4: and day and distance. All of that is driven by

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Speaker 4: machine learning algorithms. So that has been going on. Those

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Speaker 4: algorithms only get better in the data sets that we

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Speaker 4: work with are the largest data sets globally, and the

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Speaker 4: more data we have, the smarter we get, the more.

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Speaker 3: Personal we can get.

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Speaker 4: We are now focused more on productivity applications, so for example,

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Speaker 4: introducing GitHub copilot for our developers, or helping summarize situation

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Speaker 4: for customer service agents so that they already know context

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Speaker 4: of what's going on with the particular customer and how

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Speaker 4: they can help. We will absolutely put our AI agents

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Speaker 4: out there to help the consumer, but also don't forget

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Speaker 4: about the driver drivers who are driving on our marketplace.

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Speaker 4: They also want help where should I go, what right

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Speaker 4: should I accept, etc. So we're also working on AI

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Speaker 4: to power drivers and couriers so that they can make

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Speaker 4: smarter decisions every day, to be able to earn flexibly,

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Speaker 4: but to maximize their earnings based on their time.

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Speaker 2: So hang on, just to double down, there is an

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Speaker 2: Uber chat bought something that you're working on right now.

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Speaker 4: We're working on it right now, absolutely, but it's a

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Speaker 4: very very small part of the AI ecosystem.

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Speaker 1: In er. Our global radio and television audience is listening

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Speaker 1: to the CEO Dara Kushashahi. Dara Uber is as close

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Speaker 1: as anything the US and Europe had to an everything

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Speaker 1: app something akin to what you might see in Southeast Asia.

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Speaker 1: So I'm curious how closely you're paying attention to your

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Speaker 1: crosstown neighbor, mister Musk and what X is doing within

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Speaker 1: everything app.

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Speaker 4: Well, it's difficult to take your eyes off of what

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Speaker 4: Musk is doing or read about what Evon is doing,

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Speaker 4: and we do so because we want to learn and listen.

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Speaker 3: It's pretty fun.

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Speaker 4: But we are leading in terms of building out a

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Speaker 4: super app. Remember to that in Southeast Asia we have

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Speaker 4: a very significant strategic investment in grab Grab as has

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Speaker 4: mobility delivery payments on their app, Kareem in which we

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Speaker 4: have a big investment in Meddally same thing mobility delivery

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Speaker 4: payments payments as well. So we're very very familiar with

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Speaker 4: a super app concept and in the West, I do

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Speaker 4: think Uber is the closest to achieving that super We

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Speaker 4: want to be that operating system for your everyday life.

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Speaker 4: Wherever you're going, whatever you want to get delivered, Uber

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Speaker 4: is going to be there for you. And I think

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Speaker 4: that we are steadily moving along with the super at path,

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Speaker 4: which is why we're gaining category or position against their competitors.

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Speaker 4: Both in mobility and delivery while delivering margins and being

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Speaker 4: profitable as well.

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Speaker 2: Curious a Free is part of that super app plan, Dara.

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Speaker 2: I mean even you pointed out today that you know

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Speaker 2: that is the weakness in the business. It does seem

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Speaker 2: to be a drag on the business. What's the plan

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Speaker 2: there to sell it, to spin it off?

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Speaker 4: Well, the plan is to build at this point. So

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Speaker 4: FRED is absolutely suffering from the same kinds of trendsit

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Speaker 4: you see in terms of delivery of things in retail

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Speaker 4: generally is a bit weaker than spend on services. You

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Speaker 4: saw Yellow for example, big trucking firm go out of

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Speaker 4: business yesterday. There's a lot of difficulty in terms of

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Speaker 4: freight in terms of rates, and FRED is fighting its

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Speaker 4: way through that. But we continue to innovate. Even today.

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Speaker 4: The way that shippers connected truckers is incredibly outmotive. There's

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Speaker 4: a lot of paper, there is so much data. The pricing,

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Speaker 4: the routing, etc. Is based on technology that was built

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Speaker 4: twenty twenty five years ago. As we continue to innovate

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Speaker 4: and as we continue to focus on algorithmic pricing making

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Speaker 4: that perfect match between a shipper and a trucker, we

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Speaker 4: think over per the time we can build an asset

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Speaker 4: of great value. So at this point it's heads down.

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Speaker 4: The team is executing in a tough environment. Our losses

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Speaker 4: are decreasing. We think the second half on a bottom

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Speaker 4: line basis, is going to be significantly better than the

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Speaker 4: first half. And next year we're going to get back

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Speaker 4: to growth, all right

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Speaker 1: Thanks to Bloomberg's emply changing in that conversation with Uber

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Speaker 1: CEO Dara Koshrashahi,