WEBVTT - Uber CEO Dara Khosrowshahi Talks Robotaxis, Q2 Results

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Take another look at shares of Uber down about six percent.

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<v Speaker 2>I think that's on track for its biggest drop since November.

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<v Speaker 2>The company said gross bookings for the current quarter are

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<v Speaker 2>expected to be between fifty eight point twenty five billion

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<v Speaker 2>dollars and sixty point twenty five billion dollars, but that

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<v Speaker 2>figure includes ride and delivery bookings as well as driver

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<v Speaker 2>and merchant earnings. Uber said it faces some international headwinds,

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<v Speaker 2>particularly in Brazil and the next focus Robotaxi CEO Dara

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<v Speaker 2>Kostra Shahi's back with us here on Bloomberg Tech. You know,

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<v Speaker 2>the gross bookings outlooked like there's a number of stories

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<v Speaker 2>within it. I'd also not like at the same time,

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<v Speaker 2>rider activity seems to be increasing, you know, help us

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<v Speaker 2>understand those two data points.

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<v Speaker 1>Yeah, the growth bookings results that we had up twenty

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<v Speaker 1>two percent in the quarter were actually very healthy and

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<v Speaker 1>represented quarter on quarter acceleration. Mobility business was stable at

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<v Speaker 1>twenty percent. The delivery business actually accelerated quarter on quarter

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<v Speaker 1>as well. So the business continues to grow at pretty

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<v Speaker 1>extraordinary rates. At the scale we're doing over three hundred

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<v Speaker 1>million trips per week. It drove really strong profitability as well.

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<v Speaker 1>The pressure that we talked about was really in Brazil,

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<v Speaker 1>which caused a trip slowdown for the quarter, and that

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<v Speaker 1>was actually about competition in the food delivery space in Brazil.

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<v Speaker 1>Actually we have a lot of mobility ridership that are

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<v Speaker 1>two wheelers. We actually don't engage in the food delivery space,

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<v Speaker 1>but there's a big war going on in food delivery

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<v Speaker 1>and that took away some of our two wheeler drivers

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<v Speaker 1>from mobility to delivery. Because they're getting paid a lot

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<v Speaker 1>to engage in that war. It really has no effect

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<v Speaker 1>on us whatsoever. So the guidance that we gave for

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<v Speaker 1>full war gross bookings growth is very consistent with the

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<v Speaker 1>guides that we gave last quarter, and hopefully we will

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<v Speaker 1>meet and hopefully beat those kinds of expectations.

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<v Speaker 2>DAR, is there anything to discuss on both like the

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<v Speaker 2>health and behavior of the consumer that you're seeing going

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<v Speaker 2>into the second half of this year.

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<v Speaker 1>All signs point to a healthy consumer. We look at

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<v Speaker 1>both our mobility and delivery business in terms of the

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<v Speaker 1>growth of those businesses, they continue to be healthy. We

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<v Speaker 1>look at like other indications, are consumers trading down and

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<v Speaker 1>eating at morefordable restaurants or our eaters leaving less tips

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<v Speaker 1>eaters or riders leaving less tips. We don't see any

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<v Speaker 1>signs whatsoever of a consumer slowdown, So the consumer remains strong.

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<v Speaker 1>And then on the labor front, actually our driver earnings,

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<v Speaker 1>we've got over ten million now earners around the world

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<v Speaker 1>world that continues to be very healthy. And in the US,

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<v Speaker 1>for example, driver earnings are up eight percent on a

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<v Speaker 1>year on your basis, So you know, people talk about

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<v Speaker 1>the K shaped economy, but we think both sides of

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<v Speaker 1>the K continue to be very healthy and right now,

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<v Speaker 1>all signs point to the same going forward.

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<v Speaker 2>Let's take the driver out of it for a moment

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<v Speaker 2>and talk about robotaxis. You kind of explained the plan

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<v Speaker 2>for the rest of the year, which is to get

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<v Speaker 2>into more cities through different partnerships in different lanes, different methods.

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<v Speaker 2>Let's start with that. You know, are you wanting to

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<v Speaker 2>see the team accelerate a bit on that deployment, Dara.

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<v Speaker 1>Yeah, definitely. So we're in seven cities already with a

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<v Speaker 1>number of partners and just a review. We want to

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<v Speaker 1>work with all of the ecosystem partners and just like

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<v Speaker 1>we want every safe driver human driver on our platform.

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<v Speaker 1>We want every safe robot driver on our platform, and

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<v Speaker 1>we're working with the entire ecosystem to accomplish that. We're

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<v Speaker 1>seven markets now, by the end of the year, we'll

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<v Speaker 1>be in fifteen markets, and we're attractive be on fifteen

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<v Speaker 1>markets and we see a lot of advancements as it

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<v Speaker 1>relates to our partners. I know you're going to have

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<v Speaker 1>Asha from zoos on. They got a great approval from

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<v Speaker 1>the NHTSA to run there like really really innovative and

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<v Speaker 1>cool robot vehicles as well. We got approval for a

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<v Speaker 1>wave to start testing operations in London as well. In Nvidia,

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<v Speaker 1>who is a huge partner of ours, announced the release

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<v Speaker 1>of their Alphame two model, which is a physical AI

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<v Speaker 1>model as well. So the ecosystem around AV continues to

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<v Speaker 1>move forward, is actually accelerating, and we are helping that

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<v Speaker 1>ecosystem accelerate through our partnership, through investment, through data collect

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<v Speaker 1>for a number of these partners, and then ultimately commercialization

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<v Speaker 1>of these vehicles on the road in the cities which

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<v Speaker 1>we live.

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<v Speaker 2>Dara On zokes and I'll ask I said this obviously,

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<v Speaker 2>but you know now they can charge a fair which

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<v Speaker 2>is a first for a true robotaxi no driver controls.

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<v Speaker 2>When does that manifest on the Uber app? When will

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<v Speaker 2>a Zookes be available on an Uber app in which

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<v Speaker 2>of a city with a fair associated with it?

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<v Speaker 1>We think later this year actually in Las Vegas, and

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<v Speaker 1>then we'll expand from there and Zeus's strategy is going

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<v Speaker 1>to be to make their vehicles available on Uber as

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<v Speaker 1>well as on the Zookes app as well. So we're very,

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<v Speaker 1>very excited to work with that.

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<v Speaker 2>A lot of people want to understand what's happening in

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<v Speaker 2>the relationship with Weimo. There was a change of plans

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<v Speaker 2>in Phoenix, but how confident are you also about sort

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<v Speaker 2>of renewing non exclusive contracts with Weimo. I think that

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<v Speaker 2>your agreements with them, for example in in Austin, Atlanta

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<v Speaker 2>run through twenty twenty eight, and then you've got to

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<v Speaker 2>work out how to go from there.

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<v Speaker 1>Yes, So the deployment in Phoenix was a really small deployment.

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<v Speaker 1>It was less than two car so that's not material

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<v Speaker 1>in any way, shape or form. We're going to continue

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<v Speaker 1>to work with Weimo. It's been a strong partnership going

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<v Speaker 1>forward into twenty eight as well. And you know our

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<v Speaker 1>philosophy has always been we don't want to be dependent

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<v Speaker 1>on one partner one way or the other. Of course

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<v Speaker 1>we'd love to continue the relationship with Weimo, but then

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<v Speaker 1>you've got partners like zeukes A wave A, we Ride,

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<v Speaker 1>av Ride, and then of course in Vidia as well,

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<v Speaker 1>so that we're not dependent on any single player to

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<v Speaker 1>keep driving and growing this ecosystem.

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<v Speaker 2>By the way, Dara, we're live on Bloomberg Television and

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<v Speaker 2>on Bloomberg Radio, and this is Bloomberg Tech speaking to

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<v Speaker 2>Uber's CEO, and you've just said that you don't want

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<v Speaker 2>to rely on any one partner. Let me put it

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<v Speaker 2>a different way. If we accept that Weimo is kind

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<v Speaker 2>of the commercial robotaxi leader in the US, at least

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<v Speaker 2>in terms of deployments, charging a fair of the rest

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<v Speaker 2>of the field. Which do you think is most competitive

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<v Speaker 2>or going to be most competitive against Wima?

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<v Speaker 1>I think I think there are gonna be multiple winners.

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<v Speaker 1>I mean, this market is so early in its development,

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<v Speaker 1>and and I compare it to like the Foundation model Space.

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<v Speaker 1>You remember, like three years ago or two years ago,

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<v Speaker 1>people were like open Ai is gonna run away with it.

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<v Speaker 1>They're gonna they're gonna be the only game in town.

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<v Speaker 1>Then it turned into Anthropic and Claude is you know,

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<v Speaker 1>the best model that's going to conquer the hall. Now

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<v Speaker 1>you see you know uh x Ai and space xa

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<v Speaker 1>Ai coming in with Grock and the combination with Cursor

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<v Speaker 1>being a really great combination as well. You've got Google

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<v Speaker 1>coming in with Gemini. They were late in the game,

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<v Speaker 1>but they're definitely in the game in Vidiah releasing open

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<v Speaker 1>source and really supporting that ecosystem. So there is going

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<v Speaker 1>to be no single winner here. Weimo's in the lead now,

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<v Speaker 1>just like open Ai was in the lead, but there

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<v Speaker 1>are going to be many, many players as part of

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<v Speaker 1>this ecosystem, and we will help the ecosystem overall commercialize

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<v Speaker 1>because ultimately we've got the demand and we can bring

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<v Speaker 1>more rides to those cars and monetize those vehicles in

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<v Speaker 1>a way that no one else can.

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<v Speaker 2>So dar really quick to drive early adoption. Is it

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<v Speaker 2>important that the robotaxi firms price lower than other ride share.

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<v Speaker 1>No, Actually, what we're seeing is pricing is super strong

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<v Speaker 1>and demand is super strong as well. So when you

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<v Speaker 1>get the product in market, it sells. It's taken a

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<v Speaker 1>long time, right, like twenty percent of search now is

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<v Speaker 1>driven by ai av is less than point five percent

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<v Speaker 1>of overall trips at this point, so the adoption is

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<v Speaker 1>going to take time. But the product is a terrific

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<v Speaker 1>product and we look forward to making it available on

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<v Speaker 1>the Uber app really all over the world.