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Speaker 1: Stick into the Zuber earnings for peace to be welcoming

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Speaker 1: to the show, the CEO of that very company, Darklesushahi,

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Speaker 1: as well as of course our own Emi Chang of

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Speaker 1: Blue mag news Emy take it away.

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Speaker 2: First, Caroline, thank you so much. Dara, thank you as

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Speaker 2: well as always for joining us. So look, Uber shares

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Speaker 2: have almost doubled this year, but they were a little

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Speaker 2: volatile this morning on the upswing. Now, what's the message

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Speaker 2: to investors who are seeing mixed signals here?

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Speaker 3: Well, the message to investors is that we had another

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Speaker 3: record quarter and that the business is accelerating and actually

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Speaker 3: surprised us on on the top line, our growth bookings

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Speaker 3: came in over thirty five billion dollars, up twenty percent

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Speaker 3: on a constant currency basis, accelerated versus an already high

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Speaker 3: growth rate in Q two. If you look at the

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Speaker 3: number of trips taken on the platform, two point four

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Speaker 3: billion trips this last quarter, that's twenty seven million trips

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Speaker 3: taken every single day. That was up twenty five percent

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Speaker 3: ton and you're on your base us again, an acceleration

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Speaker 3: over last quarter where trips grew twenty two percent. We

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Speaker 3: did have a revenue accounting adjustment, and basically it was

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Speaker 3: taking marketing costs and incentives. We do provide incentives to customers,

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Speaker 3: discounts to spur demand, and while they used to be

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Speaker 3: classified as marketing cost in previous years, in previous quarters

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Speaker 3: they were classified as contra revenue and our revenue then

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Speaker 3: stated revenue grow ten percent. But this it's really the

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Speaker 3: geography of marketing. Classified as contra revenue took down a

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Speaker 3: reported revenue by eight percent, doesn't affect the bottom line

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Speaker 3: at all. So ourjustiny Badah came in at a billion

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Speaker 3: ninety two, up over one hundred percent on y're on

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Speaker 3: your basis, And then of course we were again gap

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Speaker 3: net income profitable with over two hundred million dollars in

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Speaker 3: net income and something that we expect to be profitable

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Speaker 3: going forward as an enterprise.

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Speaker 2: Right your second quarter of profitability. Revenue is growing more

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Speaker 2: slowly though over the last several quarters. So you know,

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Speaker 2: what are your longer term what's your longer term view

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Speaker 2: on where the growth is going to come from. And

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Speaker 2: you know, those who were concerned about market saturation, well, the.

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Speaker 3: Revenue growth slowdown is again purely as a result of

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Speaker 3: these accounting reclassifications. If you look at the business and

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Speaker 3: the bookings growth, which is really consumer demand, both on

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Speaker 3: the right side and on the delivery side. Both of

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Speaker 3: them accelerated. So our mobility business grew growth bookings thirty

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Speaker 3: percent on a year on year basis. It was an

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Speaker 3: acceleration over Q two. We saw strength all over the world,

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Speaker 3: but we saw particular strength in the Asia Pacific regions

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Speaker 3: and Latin American regions as a result of some of

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Speaker 3: the newer products that we've introduced, taxi two wheelers, motorcycles

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Speaker 3: that you know are Uber motors that can whish through traffic, etc.

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Speaker 3: And then on the delivery side, our gross bookings grow

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Speaker 3: sixteen percent, again an acceleration over Q two when you

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Speaker 3: grow fourteen percent, and that's just food delivery continuing to

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Speaker 3: be super popular with consumers all around the world. It's

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Speaker 3: our growing faster than the general category. We gain category

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Speaker 3: position in nine out of ten top ten markets all

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Speaker 3: around the world. And it's our number of grocery offerings

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Speaker 3: expanding beyond just food into grocery, alcohol, pet food, whatever

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Speaker 3: you want delivered to your home. We want Uber East

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Speaker 3: to be there. So the strength continues. The consumer US consumer,

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Speaker 3: global consumer continues to be strong, and that's definitely been

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Speaker 3: a tail one for our business.

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Speaker 2: You've been building out your advertising business, and I'm curious

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Speaker 2: where you see the biggest opportunity there. Who's a target demo,

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Speaker 2: where's the most upside, Where's the best place to show

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Speaker 2: folks in the app new advertising and how does that

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Speaker 2: play out?

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Speaker 3: Well? The biggest part of our advertising business are restaurants

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Speaker 3: who are looking to improve their placement inside of the

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Speaker 3: marketplace by targeting consumers or eaters who are likely to

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Speaker 3: want to eat from that restaurant. And these are mostly

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Speaker 3: small and medium businesses and enterprises like McDonald's or Wendy's, etc.

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Speaker 3: Who advertise on our platform. And because we know so

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Speaker 3: much about our consumers all our data, etc. We can

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Speaker 3: identify consumer segments who are likely to react, so to speak,

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Speaker 3: to that advertising. And as a result, advertising revenue continues

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Speaker 3: to grow at significant numbers. We targeted a billion dollars

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Speaker 3: in advertising for next year. We're pacing on that target.

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Speaker 3: We're going to exceed that target as well. The number

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Speaker 3: of advertisers who are advertising on Uber is up seventy

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Speaker 3: percent on a year on year basis. It's over four

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Speaker 3: hundred thousand dollars four hundred thousand businesses as well. Now,

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Speaker 3: one of the newer advertising products that we're very excited

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Speaker 3: about is actually branded advertisements, and you might see those

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Speaker 3: branded advertisement advertisements when you're using your Uber app and

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Speaker 3: you're waiting for your car. We might show you and

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Speaker 3: add from an Apple or a credit card company, or

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Speaker 3: an upcoming movie. Our demographic consumer tends to be urban,

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Speaker 3: tends to be very high income, and we have very

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Speaker 3: big hopes for our branded advertising business as well.

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Speaker 4: Dar We've gone deep here on the numbers, which Emily

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Speaker 4: and Caroline know I love doing, But I just have

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Speaker 4: a big picture question for you. What does Uber look

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Speaker 4: like in five years from now and what are the

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Speaker 4: steps that you take to meet your vision for Uber

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Speaker 4: in five years time?

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Speaker 3: Well, I think in five years time, we really want

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Speaker 3: to be that operating system for everyday life for you. Personally.

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Speaker 3: We want you to wake up and think about Uber.

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Speaker 3: I am I going to have breakfast? Am I going

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Speaker 3: to top up my groceries? If I'm cooking tonight, going

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Speaker 3: to the office, coming back to the office. We really

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Speaker 3: want Uber to be there every day to help you

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Speaker 3: in your life, to get you where you're going, and

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Speaker 3: to save time from some of these tasks. You know,

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Speaker 3: there are some people who like grocery shopping, but there

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Speaker 3: are a ton of people who don't like grocery shopping.

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Speaker 3: There are a ton of people who just want to

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Speaker 3: eat at home, etc. And we want Uber to be

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Speaker 3: that relevant life partner or life operating system for you

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Speaker 3: really all over the world. It's the freight unit.

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Speaker 1: Dara still part of that vision in five years time.

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Speaker 1: There's been talked from our own bluemerg analysis, so maybe

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Speaker 1: that's fun off well.

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Speaker 3: Freight is a very promising segment for us that is

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Speaker 3: suffering now from kind of the great freight recession that

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Speaker 3: you see create rates are coming down post pandemic as

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Speaker 3: a result of an oversupply situation. There are a ton

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Speaker 3: of digital broker and actually analog traditional brokers going out

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Speaker 3: of business now. One of our big competitors, Convoy, for example,

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Speaker 3: announced that they were going out of business a couple

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Speaker 3: of weeks ago, and that's those rates of hit or

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Speaker 3: freight business as well. It was down twenty seven percent

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Speaker 3: year on year. It lost some money, but the technology

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Speaker 3: of matching supply and demand in a digital way, we

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Speaker 3: still think has incredible promise. As the freight business cleans

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Speaker 3: up to some extent and some of the smaller players

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Speaker 3: move out. We think that Uber Freight is going to

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Speaker 3: emerge as one of the players with the best technology

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Speaker 3: out there. We've actually invested into the transportation management part

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Speaker 3: of the business. So not only do we connect you

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Speaker 3: with a trucker to go from point A to B,

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Speaker 3: we're helping you with your whole freight network and using

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Speaker 3: machine learning, using the power of the data that we

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Speaker 3: have to create a more effective shipping network for you.

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Speaker 3: We think that's a very promising business and at this

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Speaker 3: point we are absolutely investing in freight and innovating around freight.

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Speaker 2: Dara, Uber's been in the AI business for a long time,

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Speaker 2: but I know you're integrating it more and more into

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Speaker 2: the platform. Where have you seen the biggest value add

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Speaker 2: so far and where do you expect to see the

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Speaker 2: biggest value add from AI in the future.

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Speaker 3: Well, AI is intermingled into every part of our platform.

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Speaker 3: And you know, every single time you see a price

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Speaker 3: on Uber, every single time we make an offer to

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Speaker 3: a driver on Uber, every time we match you up

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Speaker 3: with a vehicle route you, all of that is powered

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Speaker 3: by AI. Some of the newer AI kind of innovations

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Speaker 3: that you see with large language models are helping us

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Speaker 3: automate some tasks that were difficult to automate previously or

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Speaker 3: difficult to train machine learning algos previously. One is, for example,

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Speaker 3: document transcription. If you put in your license, your insurance

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Speaker 3: background checks, et cetera. Documents we can transcribe to those

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Speaker 3: with the power of machine learning versus having humans look

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Speaker 3: at it. Humans, as it turns out, often make more

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Speaker 3: mistakes than algorithms. We actually combined both into call it

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Speaker 3: a superhuman. Another area that we are we think is

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Speaker 3: quite promising is actually on the customer service side. Anytime

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Speaker 3: someone reaches out to us in customer service, we have

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Speaker 3: to be aware of you know, your history with Uber.

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Speaker 3: We've got to be aware of the context, what's going

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Speaker 3: on in that particular time, and also what are our policies,

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Speaker 3: and our policies differ all over the world. Again, machine

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Speaker 3: learning algorithms can go through all of that at the

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Speaker 3: click of the button essentially and then get back to

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Speaker 3: the customer. And we think actually provide an elevated customer

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Speaker 3: service at a lower cost, something that's super excited for us.

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Speaker 4: All right, Well, thanks there to uberco direc question Shark,

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Speaker 4: and of course Bloomberg exemptly changed out in SC