Uber Technologies Inc (UBER)

U.S. Mobility Bookings and Insurance Costs
Q: How are U.S. mobility bookings trending, and what impacts are insurance costs having?
A: U.S. mobility continues to grow robustly, remaining Uber's largest market with less than 50% of gross bookings but over 50% of profitability. - However, increased commercial insurance costs in states like New Jersey and California have led to higher fares, causing a typical one-to-one elasticity where transaction growth slows as prices rise. - Weekday growth is outpacing weekends, with strong performance in Uber For Business, which is up over 50%, and no signs of consumers trading down. -

Autonomous Vehicles and Vaymo Partnership
Q: What is Uber's approach to autonomous vehicles, particularly with Vaymo?
A: Uber is expanding its autonomous vehicle partnerships, notably with Vaymo, focusing on deep integration in select cities like Austin and Atlanta. - - - While initial volumes in Phoenix are modest, the experience has been positive, and the real test will be the significant expansion next year with Vaymos in the hundreds in those markets. - Uber believes focused investment in key cities yields better returns than spreading thinly across many. -

Advertising Business Growth
Q: How is Uber's advertising business performing and what is its outlook?
A: Uber's advertising business is growing rapidly, aiming to exceed 2% of gross bookings in Delivery, currently in the mid-1% range. - The SMB CPC business is expanding strongly, enterprise penetration is increasing, and they are developing sponsored listing products for groceries. - Mobility advertising is also promising, with click-through rates 2–3 times industry averages, and new partnerships like T-Mobile to bring Journey TV to 50,000 vehicles. -

Delivery Growth and Uber One Membership
Q: What's driving growth in Delivery and how is Uber One membership contributing?
A: Delivery gross bookings grew 17%, driven by both new audience acquisition and increased frequency. - The main Uber Eats business is bringing new users, significantly assisted by cross-promotion from Mobility, with one-third of new audience coming from Mobility. - Focus on customer experience and the Uber One membership program, which now has 25 million members up 70% year-over-year, is enhancing frequency, as members spend 3 times more than non-members. -

Capital Allocation and M&A Strategy
Q: How does Uber approach capital allocation and decisions on partnerships vs. acquisitions?
A: Uber prioritizes responsible organic investments aligned with growth strategy and focused on free cash flow. - With investment-grade status achieved, they are returning excess capital to shareholders, utilizing share buybacks as the primary vehicle. - M&A is selectively evaluated with a high bar, requiring both strategic value and financial accretion, as seen in the Foodpanda acquisition. - They prefer to build organically but will consider acquisitions if they can add significant value. -

Impact of Insurance Cost Increases
Q: Are rising insurance costs primarily a U.S. issue, and how is Uber managing this?
A: Rising insurance costs are primarily a U.S. phenomenon, with motor vehicle insurance CPI up 16% year-over-year in September. - Uber expects these costs to continue increasing but at a lower rate. - Their principle is to pass along insurance cost changes to riders, and they are working to reduce costs through safety initiatives and risk management programs. -

Consumer Demand and Macro Outlook
Q: How is the broader consumer landscape affecting Uber's business?
A: Uber is seeing strong consumer demand, with audience and frequency at all-time highs and global consumer retention up in both Mobility and Delivery. - There are no signs of consumers trading down, and Uber For Business is experiencing strong growth with 50% constant currency growth. - The company remains optimistic about the consumer environment. -

Opportunity in Less Dense Markets
Q: How is Uber approaching less dense markets for growth?
A: Uber sees significant opportunity in less dense areas, starting with Delivery where non-core cities represent 60–70% of the U.S. market. - They are investing in improving selection and building liquidity in these areas, expecting it to be a tailwind for growth over the next 2 to 3 years. -

Autonomous Fleet Operations and San Francisco Insights
Q: How is Uber leveraging its fleet operations for AVs, and what's the impact in San Francisco?
A: Uber is extending its fleet operations expertise to autonomous vehicles to drive efficiencies for AV tech providers. - In San Francisco, they see Vaymo having a category position in the high single digits to low double digits where they operate, but are not seeing significant effects on their own consumer base. -

Uber Direct and Partnerships
Q: What's Uber's strategy for Uber Direct and partnerships like the one with Darden?
A: Uber continues to invest aggressively in Uber Direct, expanding engineering resources and deepening capabilities. - Some partnerships are exclusive while others are not; it depends on the specific deal. - Uber's global reach is a significant benefit to partners, allowing integration across multiple markets. -