WEBVTT - Uber CEO Dara Khosrowshahi Talks Earnings Miss

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<v Speaker 1>We now want to bring in Bloomberg's Emily Chang, who

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<v Speaker 1>is standing by with Uber CEO Dara Koshersaui Shanali thank

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<v Speaker 1>you and Dara, thank you for joining us today again. Obviously, look,

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<v Speaker 1>you can see that growth is continuing on both sides

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<v Speaker 1>of the business pretty strong. But that net loss I

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<v Speaker 1>think was disappointing for some investors after the progress you made.

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<v Speaker 1>Shares are down, lift shares on the other hand, are up.

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<v Speaker 1>What is the message to investors this morning?

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<v Speaker 2>Well, I think the message to investors is that we

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<v Speaker 2>continue to deliver on consistently strong top line growth and

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<v Speaker 2>then outsize outsized profitability growth. You saw trips for US

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<v Speaker 2>increase twenty one percent on a year on your basis,

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<v Speaker 2>we're at a run rate of more than ten billion

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<v Speaker 2>trips on an annual basis, which is pretty incredible. Gross

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<v Speaker 2>booking screwed twenty one percent as well. On a constant

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<v Speaker 2>currency basis. Our ibidah came in at one point four

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<v Speaker 2>billion dollars, up eighty two percent, and that also translated

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<v Speaker 2>into free cash row, so free cashrow one point four

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<v Speaker 2>billion four point two billion. Over the past twelve months.

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<v Speaker 2>We did swing to a loss, but the significant factor

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<v Speaker 2>behind that loss was actually the value of our equity stakes.

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<v Speaker 2>Some of them have been marked down, and you know,

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<v Speaker 2>markets go up and markets go down. We can't control that.

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<v Speaker 2>What we can't control is are we building a big

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<v Speaker 2>business mobility and delivery business on a global basis? Are

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<v Speaker 2>there more customers coming to us? Our audience grew fifteen percent,

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<v Speaker 2>frequency group six percent. So I think as long as

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<v Speaker 2>we continue to deliver on our service, on the promise

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<v Speaker 2>of mobility everywhere delivery of food and grocery, et cetera,

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<v Speaker 2>will be more than fined.

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<v Speaker 1>Gap operating profit dropped by you know, in part due

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<v Speaker 1>to what you described as regulatory reserve changes and settlement.

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<v Speaker 1>What are some of the headwinds that you're seeing and

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<v Speaker 1>monitoring well.

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<v Speaker 2>I think some of these settlements are for issues that

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<v Speaker 2>have occurred in the past, and what we're trying to

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<v Speaker 2>do now is operate in a way that takes into

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<v Speaker 2>account all of our stakeholders, our writers, our drivers or eaters,

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<v Speaker 2>as well as regulators. And what we're trying to do

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<v Speaker 2>is kind of try to clean up some of these

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<v Speaker 2>past liabilities and move forward and doing the right thing

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<v Speaker 2>for everybody.

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<v Speaker 1>I spoke with you and Instacart CEO Figcimo yesterday, And

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<v Speaker 1>obviously your new partnership is a bigger deal now that

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<v Speaker 1>I know that it's not just exclusive to Instacart. Can

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<v Speaker 1>you talk about some of the other partnerships and services

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<v Speaker 1>that you could potentially plug in to Uber Eats, like

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<v Speaker 1>I'm thinking Netflix or YouTube or TikTok.

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<v Speaker 2>Well, we're really focused right now on making this work

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<v Speaker 2>on Instacart, and this all started from our building essentially

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<v Speaker 2>with our Uber app, kind of a super app of sorts.

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<v Speaker 2>You can come to Uber and you can order food

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<v Speaker 2>off of the eats tab on Uber. That business has

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<v Speaker 2>been growing significantly. Consumers love it and you know, if

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<v Speaker 2>they want to go to eat app, they can, If

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<v Speaker 2>they want to eat on the Uber app, they can

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<v Speaker 2>as well. That led us to the discussions that we

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<v Speaker 2>had with Fiji that we talked about. The focus right

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<v Speaker 2>now is really making sure that our Instacart partnership works right.

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<v Speaker 2>Instacart has very very strategic customer base in the suburbs

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<v Speaker 2>where we're already growing, but we want to grow faster

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<v Speaker 2>and really that's going to be the focus. But the

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<v Speaker 2>technology that we build allows us to essentially embed in

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<v Speaker 2>an absolutely first rate Uber Eats experience into other apps

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<v Speaker 2>as well, So you could imagine embedding in entertainment apps

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<v Speaker 2>or sports apps, etc. And when you're hungry, ordering eats

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<v Speaker 2>run in that app. So that is absolutely something that

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<v Speaker 2>we could deliver technically as a result of a great

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<v Speaker 2>job of our engineers. But right now the focus is

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<v Speaker 2>let's make instacart work. I'm sure there'll be some growing pains,

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<v Speaker 2>There'll be some tuning to do in terms of the

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<v Speaker 2>tech and the experience, and then we'll go from there.

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<v Speaker 1>Interesting. You know, there's this Tesla robotaxi news out of China,

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<v Speaker 1>and obviously your story with autonomous vehicles has been a

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<v Speaker 1>little up and down. Will we ever see Tesla robotaxis

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<v Speaker 1>on order on Uber.

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<v Speaker 2>Well, we would certainly welcome it. You know, our view

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<v Speaker 2>as it relates to autonomous is this is a technology

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<v Speaker 2>that holds great promise both in terms of expanding our marketplace,

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<v Speaker 2>lowering prices, making transportation available safely to more and more people.

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<v Speaker 2>It's taken much much longer than anyone imagined. We don't

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<v Speaker 2>operate in China, So to the extent that Tesla operates

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<v Speaker 2>a robotaxi fleet in China, that's not something that we

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<v Speaker 2>would engage in. But what we have told the av

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<v Speaker 2>industry is that we're here to partner and you can

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<v Speaker 2>essentially plug in your vehicles as long as they're safe,

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<v Speaker 2>as long as regulators are aligned as well. Into our

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<v Speaker 2>network and the demand that we bring and all the

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<v Speaker 2>services that we built in terms of matching and routing

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<v Speaker 2>and pricing, we can bring that all to you day one.

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<v Speaker 2>That results in higher utilization. You know, your cars will

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<v Speaker 2>get more rides. And if there's a Tesla owner, a

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<v Speaker 2>car owner who wants to put his or her car

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<v Speaker 2>into the Uber network, they'll make more money than if

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<v Speaker 2>it wasn't in the network. So we'd love to work

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<v Speaker 2>with all players. We have a lot of respect for Tesla.

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<v Speaker 2>There are a lot of Tesla's in our fleet already,

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<v Speaker 2>so we'd absolutely welcome safe Tesla autonomous cars in our

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<v Speaker 2>fleet too.

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<v Speaker 1>And you know, I'm hearing just anecdotally more and more

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<v Speaker 1>people who are taking weimo. And you do have a

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<v Speaker 1>partnership with Weimo, can you tell us a little bit

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<v Speaker 1>more about how that partnership works financially speaking, Like, does

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<v Speaker 1>Weimo get paid a fee for referring rights to Uber?

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<v Speaker 1>Do you operate a fleet of Weaimo's, Like, what's in

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<v Speaker 1>it for you as an aggregator.

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<v Speaker 2>Yeah, it's we don't disclose the financials so to speak.

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<v Speaker 2>We operate with Waimo in Phoenix, and actually we operate

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<v Speaker 2>both on the mobility side and on the delivery side.

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<v Speaker 2>So Weymo's and Phoenix are taking uber riders and they're

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<v Speaker 2>actually now delivering food to eaters as well as we

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<v Speaker 2>expand the use cases there. And I think what you

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<v Speaker 2>can imagine the model being, and this is not specific

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<v Speaker 2>to Weemo, is just like theirs. We have a take

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<v Speaker 2>rate with human drivers, right about seventy nine percent of

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<v Speaker 2>our gross bookings go to drivers and couriers and merchants

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<v Speaker 2>and we keep about twenty one percent of it. That

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<v Speaker 2>kind of a model will be true for autonomous as well,

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<v Speaker 2>so we will have a fair take rate. We will

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<v Speaker 2>drive a ton of business to these autonomous players. And again,

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<v Speaker 2>what we're already seeing with some of our partners is

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<v Speaker 2>higher utilization, more business for the driver so to speak,

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<v Speaker 2>whether that driver is a human or ultimately a robot.

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<v Speaker 1>Uber is such a bell weather for what's going on

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<v Speaker 1>in the global economy. Inflation has stalled at a rate

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<v Speaker 1>that some folks feel is too high. What's your read

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<v Speaker 1>on the broader economy and especially in an election year.

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<v Speaker 2>Yeah, Emily, I'd say so far, so good. We read

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<v Speaker 2>all the news that you do, and we talk to

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<v Speaker 2>many many partners out there. We're not taking price, so

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<v Speaker 2>to speak, or we want to take as little price

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<v Speaker 2>as we as we can. Our transactions grew twenty one percent.

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<v Speaker 2>Our growth bookings grew twenty one percent. We want to

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<v Speaker 2>grow based on expanding our audience and increasing frequency. And

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<v Speaker 2>when we look at our customer base, you look at

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<v Speaker 2>the volumes twenty one percent growth this quarter. Next quarter,

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<v Speaker 2>the midpoint of our guidance, it's between twenty and twenty

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<v Speaker 2>one percent growth as well. So we see very consistent growth.

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<v Speaker 2>We don't see consumers trading down. We don't see eaters

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<v Speaker 2>trading down. At this point, we do see a lot

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<v Speaker 2>of strength in terms of ourber for business business so

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<v Speaker 2>to speak. Corporations are getting back to work. We see

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<v Speaker 2>a lot of strength during workday commute, et cetera. People

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<v Speaker 2>are going back to the office, maybe a little more

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<v Speaker 2>slowly than we'd like, but people are definitely going back

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<v Speaker 2>to the office. So at this point we don't see

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<v Speaker 2>signs of consumer weakness. You know, there are some merchant

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<v Speaker 2>partners who we talk to who are focused more on

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<v Speaker 2>lower value or cheaper products, et cetera. They may be

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<v Speaker 2>feeling it, but at this point, Uber volumes remain healthy

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<v Speaker 2>and kind of the nature of that volume remains healthy

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<v Speaker 2>as well.

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<v Speaker 1>And just last quick question I have to ask you

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<v Speaker 1>about Uber teen. I'm a mom, you're a dad. You know,

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<v Speaker 1>obviously this could be game changing for working parents. How

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<v Speaker 1>big a business can this be? And why should I

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<v Speaker 1>trust my kid with you?

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<v Speaker 2>Well, we think it can be a very large business,

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<v Speaker 2>and it's turning out to be a very large business

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<v Speaker 2>as well. And the reason is, you know, Uber has

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<v Speaker 2>we think industry leading safety characteristics that really no one

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<v Speaker 2>else has. So with teen, first of all, you as

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<v Speaker 2>a parent have to invite your team. When we offer

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<v Speaker 2>uber teen as a service to only the best rated drivers,

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<v Speaker 2>there's a pin to make sure that your team is

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<v Speaker 2>getting into the right Uber. You can track the uber

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<v Speaker 2>as a parent. You know, I track my kids as well.

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<v Speaker 2>It's a great experience. Make sure they're picked up okay,

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<v Speaker 2>make sure they're dropped off okay, And you can reach

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<v Speaker 2>out to the driver directly as well. So all of

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<v Speaker 2>these safety features put together, I think you know help

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<v Speaker 2>will help put parents mind at ease. It's been one

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<v Speaker 2>of our most beloved launches out there, and right now

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<v Speaker 2>we're just looking to expand in into more markets because

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<v Speaker 2>the demand is absolutely there.

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<v Speaker 1>All right, got it. I haven't tried it yet, but

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<v Speaker 1>I think maybe you just can. Miss Thank you, Dara,

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<v Speaker 1>Thank you so much for joining us as always, really

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<v Speaker 1>appreciate it.