Uber Technologies, Inc. (UBER) Earnings Call Transcript & Summary

Okay. Good morning, everybody. I'm Mark Mahaney, Senior Managing Director of Internet Research here at Evercore ISI. Spencer Tan, my colleague and I are thrilled to present and interview Uber as one of our first sessions. We have the CFO, Nelson Chai; and Jill Hazelbaker, who is the Senior Vice President of Marketing and Public Affairs. We're going to particularly talk with her about regulatory issues. We'll do this for 35 minutes. We'll have some time at the end for Q&A. Nelson, I want to start with you. I'm going to ask you a couple of questions on the ridesharing business and then on the food -- or the delivery business, and then Jill, I'm going to come to you on regulatory issues. Nelson, on ridesharing, we're now, whatever, 18 months into the COVID crisis, there have been some comments along the way about maybe new use cases haven't been created for ridesharing. What's your latest thought on the impact of the COVID crisis and people's changing behaviors and to the extent to which that's created different use cases for ridesharing that existed before?

So Mark, I think we still have to wait and see as we come to the pandemic on a more normalized basis. But what we've seen is as the recovery has occurred, it's really just extended the day out. And so if you think right now, our daytime use cases are pretty much 80% to 90% recovered in places like the U.S. Party time has recovered. So anybody who's gone out in Manhattan over the past couple of weekends has seen it. And similarly, even airports are roughly 50% recovered versus 2019 based on the last couple of weeks that we're seeing, Mark. So we're seeing a fair amount of recovery going on. What I would say is there has been some substitution. All of us have been very fortunate that during the pandemic we can sit on screens and work. But what we did find that some of the folks who are using Uber during a pandemic where essential workers or restaurant workers, people had to go there, there was a little bit of substitution going on between mass transit and other forms. Even in New York City today, if you see it right now, the subway system, at least many folks feel like it's not that safe. And so people are substituting out. The number of cab drivers is very, very down versus prepandemic levels. And so people actually are turning to Uber. And one of our challenges, as you know, has been on the supply side, Mark. And so the good news is we've seen increase in supply over the past couple of weeks. I think you heard Dara's commentary about us leaning in, in the second quarter because what really wasn't good is all of us are used to that magical experience of pressing the button and getting a ride. And for many people, particularly those listening in the U.S., we know it actually hasn't been, right? Whether it's unfulfilled rides, whether it's surge pricing. And so we know that. And so we're leaning in really hard to try to get drivers back on the platform. And the good news is we're making good progress. So we probably added 70,000 drivers in the second half of May, of really, really advancing the acceleration of getting drivers back on board. The nice thing is, as marketplaces have come back in other parts of the world, whether it's Australia or France or even in the U.K., those openings have happened quickly. And our driver supply is relatively close to kind of prepandemic levels. So that acceleration has created the right -- the good marketplace because Mark, as you know, it's really about supply-demand balance, like in any other marketplace where you want liquidity on both sides of the marketplace. And so we've really leaned in. There's still a lot of work to do. There's still a lot of folks who are kind of sitting home. We know the service isn't perfect, and so we apologize because we know that's the case. There is substitution going on because people are using it. But again, we're pretty optimistic. And you heard my commentary on the first quarter call about take rates on mobility. And so our expectation is that our forecast now says that they'll increase as we go through the back half of the year because again, we're getting good signal there. And some of the activities and the actions we're taking are working. So we should see take rates go up on mobility in the back half of the year because we're leaning in right now, we're trying to get people back in the driving.

Okay. Great. I forgot to mention if people have questions along the way, please enter them in the chat box at the bottom and we'll do our best to bring him in. So Nelson, let me just stick with those driver supply issue. Is there a way to your level of confidence that you'll be able to have that issue largely resolved by the third or the fourth quarter of this year? And what are still the biggest uncertainties in getting back to full of driver supplies you'd like?

So there's obviously a lot of pent-up demand. And so what we're seeing in cities as cities are opening up, people are just going around. And again, I've been walking around Manhattan. It's crazy. It's amazing how busy it is. I saw a stat, and so we obviously track different stats. And so I saw a stat that in New York City, in-room dining is at pre-pandemic levels per restaurant. So there are a number of restaurants that have closed. But if you think about that, think of how crazy that is to think about that. And if you walked around Manhattan over the past couple of weekends, you wouldn't think there was COVID. And so we are seeing the acceleration. We are leaning into supply. As you know, you heard our commentary on the calls that our focus really wasn't on Q2. It was leading in, in Q2 to make sure the back half of the year, we have -- we saw recovery. I would say there's still work to do. But again, the focal point of Andrew Macdonald and the rest of the team on mobility is really about making sure we're ready to go in Q3 as we continue to make progress. And again, I think the team feels good that we'll be able to get there for the back half. People are going back. As you know, vaccination rates are continuing to be good, although we're seeing numbers now that's saying the vaccines are kind of starting to wane. But there is enough confidence out there in the marketplace, and people are seeing that Ubers are safer than other alternatives. And so again, we're confident in terms of the back half on mobility.

Can you talk a little bit more about some color on the different regions, the geographic regions that seem to be recovering best and recovering the slowest and are there any -- is it just the rate of COVID vaccinations and the rate of the spread of the virus that's really the determinant there. So just talk about the areas that are recovering strongly and those that are weakly?

So Mark. I don't know that it's a straight correlation of vaccinations because, as you know, Asia has recovered faster and their vaccines have slowed versus where we are here in the U.S. and other parts. But what we've seen is in certain marketplaces like the U.K. and France, in particular. So France has really opened up over just the past couple of weeks. And what we've seen there is just it's been incredible in terms of how fast that marketplace is recovering and getting close to pre-pandemic type of levels there. And then the good news there is that what you end up seeing when this happens, and this actually relates to delivery is the first 2 weeks, it does wane because people are going out and then business does come back. And so we continue to see good month-over-month growth on the delivery side as well. I would say the places where we're still a little bit down is obviously places like India. And so I think anybody who's been watching the news knows how challenging it's been in India. And so that obviously impacts our business in India. Brazil also has had a very difficult time in terms of managing through the pandemic, as you know. But even there, in terms of recovery, that marketplace is way more recovered than you might have expected. So Mark, we are seeing that as people want to get around to move. And so -- and they're doing the maneuvers.

Let's go to the other part of the business, the delivery business. And so then the question is, what does that curve look like? And how sustainable is the growth as you -- as economies reopen? And I guess, the action question for you would be can deliveries -- delivery bookings grow year-over-year as you come against these super tough comps from last year?

So yes, we expect to. So we continue to have even in May, and you know all the opening on that's going on around the world. The business continued to grow month-over-month. We're continuing to be above a $52 billion kind of annualized run rate. All 4 -- we're at least flat to up month-over-month. So that's May over April of 2021 in all 4 of our geographies, most of the major markets, we continue to see really strong growth. So think about New York and think about Miami and those in the U.S. know how recover those 2 marketplaces are. Some parts of Florida and Texas, people would say they never was COVID. But those markets continue to grow really, really well. And so I would say that we do expect it to grow. What we're seeing is, do we think there might be less frequency, maybe the basket size will continue to grow, and we continue to -- we, in particular continue to push outside the main cities. And so again, yes, we do expect that there'll be growth. What we don't know is when everything normalizes what the world looks like. My sense is that it might impact some of the grocery delivery because people do want to go to the stores, what we're seeing. We don't think it's going to change in terms of on-demand getting food delivered or on demand, even on convenience, some of the other new verticals that we're in and others weren't.

And then Nelson, last question I missed. I want to ask Jill about some regulatory issues. The different parts of delivery, so you just started teasing it out. Where are you in terms of nonfood deliveries? And what's your sense about? Are you becoming more confident that, that will be a bigger part of your mix shift going forward?

So we're seeing really fast growth right now. But again, we're starting from a small basis, as you recall. So it's roughly, I would say, low single digits as a percent of total delivery GBs. But again, we're still at about a $3 billion run rate. So that business continues to grow. It's early days of engagement, as you know, in terms of our focus on it. We're really excited. So here's an easy example. So we have a deal now with Apple to do Uber Direct with Apple. So we're doing over 4,000 Apple orders every day in the U.S. We just started it. And so again, we're going to continue to build out. We know it's a crowded space. We think we have a long-term advantage that we're going to lever on our platform and our users. So we're pretty optimistic in terms of how this all plays out. But again, we know it's going to be a crowded field. We know it's going to be competitive. But there's a reason why because people are going to fish where the fish are. And so we think that this will be a big opportunity for us, Mark, just like our ads business, which you know we're not spending a lot of -- we're focused on but it's a very small part today of our contribution. But again, we're running at -- that business should be about a $100 million business at the end of the year, and that is good incremental if you think about how we think about profit pools in terms of funding and allocating capital across our delivery business.

I'm sorry, just real briefly on the nonfood delivery versus food delivery, the economics of that, how should investors think about it, the take rates and the end dollar contribution profit?

So it's not so much different, at least today, right, and a lot of it based on basket sizes and take rates. And so I think it depends. So again, it's too early for me to draw conclusions that I would want to kind of talk about in this kind of conference that people are going to grind over. And so what I would just say is that we're still building it out.

Okay. Great. Okay, Jill, if I could ask you a couple of questions. And first, as a highlight, there's a series of regulatory challenges that the company faces. Is there a way you could triage those for us, those that you think are -- that could be most material and those that you think are least material, both on the ridesharing and on the delivery side. So just set the landscape for us a little bit.

Sure. So here's what I'd say. First of all, thanks for having me, Mark. Here's what I'd say to level set. So unlike other big technology companies, Uber -- who are largely regulated at federal level. Uber is regulated at the federal level, the state level, the city level and sometimes the airport level. So I mentioned that I start there because what it means is that there's a lot of regulatory noise around the company and around our industry. And I think at times, it can be hard to determine what's just loud and what is actually a problem or what is a regulatory proposal and what is likely to become a law. So my job and the job of our team is to create stability and certainty for the company around the world. And I know that investors are looking for that as well. In terms of what's happening today, income and equality is a hot topic. The wealth gap is a hot topic politically. And so of course, that means that independent contractors and employee debate is going to be really in the center of the storm. From my perspective, I am very, very confident that we will get to successful outcomes around the world. And I say that -- I have that confidence because in survey after survey. So we do a lot of research into this issue. And I look at a lot of data, not just industry data, but academic thing tanks et cetera, who are talking to earners. And overwhelmingly, they want to stay independent contractors. And the reason is because they're very familiar with the choice between fixed employment and the flexibility the platforms like ours provide. And the second piece of that is that when you start educating voters, they get it too. So you look at a state like California. Big blue state where we pass Prop 22 by a 17-point margin. Of course, we did a lot of voter education to get there. But at the end of the day, voters start to understand these issues. So there's obviously a lot of issues going around the world. I'd say that the IC+ debate is the biggest one. But what I think is important for investors to understand is we've got a lot of levers at our disposal. We can negotiate with labor. We can run legislation. We can run ballot campaigns in some states. And of course, we can litigate. So you'll likely see a mix of all of those in different markets around the world with no one being a silver bullet.

Okay. And then, Jill, Prop 22, yes, received an enormous amount of attention and focus and resources from Uber. And I think a lot of investors would have thought that after that, it would probably have died down the IC issue. And I can't tell some press reports suggested it hasn't died down, but what's the reality? Do you expect to have to do a lot more state-by-state ballot initiatives? Is there anything pending anything on the federal level that's pending that we may be back in the California Prop 22 hyper-focused mode in the next 24 months?

Yes. I've been at Uber for about 6 years now. And there's been a lot of handwringing about lots of different issues, right, whether it was the New York City [ cap fight ] or Austin or California or London or London again. And we always find a way through because of what I mentioned before, because of these different levers. Not every state has a ballot option if they're Massachusetts as one that does. And there is some discussion of IC and employment happening in that state. And so if we were unsuccessful in the legislature, we might look to a ballot option. Like I said, there's going to be a mix of different issues. At the federal level, I think it's unlikely that you're going to see significant changes to our business model. And I say that partly due to the mechanics of what's -- mechanics of the Senate but also because I think that we are appropriately regulated at the state level. I don't mean to be dismissive in any way to Washington. Congressional lawmakers have an important role to play. We're talking to the administration, we're talking to the Department of Labor. And we're also, of course, working on collaboratively on positive things like getting people rides to the vaccination sites with the Biden administration.

Okay. Super. And then let's go to the delivery side, commission caps, where do you think we are? Is there a risk that -- and is this all going to be state-by-state determined or locality determined? Is there a chance -- how significant is the risk of permanent commission caps? And where do you think that's -- you think as we come out of COVID, do you expect those commission caps to melt away?

It's a good question. And so just a big broad point. I think you're going to see increasing regulatory scrutiny on the delivery side. And that is a byproduct of success. The reality is it's going to be a big business. And so naturally, there's going to be more interest on the -- from the regulatory -- from a regulatory perspective. In terms of commission caps, during the pandemic, we obviously saw lots of cities around the world institute temporary commission caps. And so far, we've been pretty successful in pushing those back in places like Seattle and then Chicago and Brazil and the state of California. I think you're going to see isolated incidents of these caps being made permanent. I know that San Francisco has a proposal going on. But from our perspective, we're focused on working at the national level with partners like the National Restaurant Association to draft model legislation. That model legislation doesn't include a commission cap.

Okay. And then Jill, one other question, one last question for you on regulation. We focus a lot on what's happening in the U.S. and you've touched on a few of the international markets. Would you want to highlight a few international markets where regulatory risk, you think is relatively high and where you think -- where you believe it's been relatively resolved?

Sure. So I think we're making pretty good progress internationally. Germany has passed reforms that should make it easier for the business to operate this summer. We see a path to ridesharing regulations in Japan. The government recently approved a dynamic pricing pilot, which would be a first step. In the U.K., we have -- you all know we've moved to a worker status, which is this unique to U.K. potential to sit between employment and full employment and independent classification -- independent contractor status. And there have been some tough bounces in Spain and in Italy. Spain on the courier side, but we've been able to pivot to a fleet model and the businesses are growing quite nicely.

Okay. I'm going to spin it over to my colleague, Spencer Tan in a second. There's 2 follow-ups for you, Nelson, if I could, questions that have come in. I think you mentioned a $52 billion run rate on delivery in May. Could you say where mobility is? And then I think there was some press reports today that Europe, mobility bookings in Europe are at 80% of pre-pandemic levels. Do you know how much of an improvement that is versus the March quarter?

So right now, our mobility business is kind of in the high 30s in terms of run rate right now, Mark. And your second question was in terms of the recovery?

Yes. And there's -- according -- there's a press report today, the mobility bookings in Europe are at 80% of prepandemic levels. I don't know if that's true or not, but if they are, is that an improvement versus the March quarter?

So it is an improvement. I don't know if it's 80% or 75% or but yes, there's been dramatic recovery. Again, we've seen it, particularly in places like Great Britain in London and in Paris and places like that. It has been remarkable how fast that marketplace has recovered. And then both of those marketplaces, the number of active drivers is actually not that far off from pre-pandemic levels. So that's obviously aided the recovery.

Okay. Spencer, over to you.

Thanks, Mark. So this question is for you, Nelson. Just in terms of your subscription business, how are you viewing that segment of the business longer term? What percentage kind of MAPCs do you think the company can ultimately get to? And basically, what's your largest acquisition channel in acquiring subscription users onto the Uber Eats platform or just the platform overall?

So look, we do think there's a huge cross-platform opportunity. So the weak -- the [ super app ] actually contributed about 13% of first-time eaters in Q1. And that's even with mobility kind of still recovering, if you will. So we do believe that there's a fair amount of opportunity and room to grow and continue to build that out. We do think over time, the platform can become the single best place in terms of first time. But obviously, we continue to invest behind it as well. And as we think towards moving down the road and getting towards our long-term margins, obviously, building up the liquidity inside of our marketplace and having all that liquidity to each other is actually how you get it. And so in the trading world where I was for a little while, how liquidity gets liquidity, and we believe that's going to be true in terms of our world as well.

Got it. Okay. And then just in terms of the company's kind of newer offerings, just given kind of like where we're at today across your multiple offerings such as Uber Connect, Uber Direct hourly rentals. What are you thinking of these creates the largest opportunity set? And what kind of these, I guess, presents the largest contributor to growth for Uber kind of longer term?

So I think long term, as we continue to go into hailables, that should help. And so what we learned over the pandemic was a lot of the folks who came back quicker were kind of at the lower price point because think about what they were. These are essential workers or restaurant workers. And so we know that there's an opportunity there. And so in certain marketplaces, as Jill was covering, those marketplaces are largely taxi markets. So Japan is the largest taxi market in the world. We just launched our joint venture in Korea, which is the seventh largest taxi market in the world with SK Group. And again, those are largely hailable markets that you'll see us be able to do it in an Uber-like way where you press a button on demand. And we think those opportunities to grow ultimately will create tremendous long-term opportunity. In terms of some of the newer products we put [indiscernible], certainly, I have a lot of people who bug me about hourly and reserve. And I'm somebody who travels like all of you. And so we -- if you just anecdotally talk to the team, it's like if you live in New York and you're going to the airport, that reserve better work, you're not going to use it. And that's also -- and people don't want to wake up and press the button and have to wait and see if they have arrived because as you know, there's no friction time in the morning when you're on your way to the airport to go somewhere. And so we are seeing early days that the hourly reserve and some of these other products are actually growing quite nicely. The rental product that we announced was really -- it was just -- it was really just kind of announced we haven't seen it yet. And then obviously, on the delivery side, Spencer, Uber Direct, we think is going to be a really good opportunity for us to work with merchants to access last-mile delivery, if you will, for them or immediate delivery for them. And so again, we're pretty optimistic. Postmates had been doing that business. It was about 18% of their orders in Q4 of last year. And so we think there's going to be a big opportunity there. And you've heard Dara talk about in that business, we want to own the hour, anything you want in an hour. And so you'll see us scale those businesses. But again, we think there's a lot of growth opportunities in both those business.

Got it. Maybe I'll take a question from the audience. One of the questions is around kind of demand elasticity within rides. I assume that means just given the price points post-COVID, maybe just talk about how you see demand reacting in terms of price and how we should think about price changing after COVID has kind of subsided within the Rides business, especially after leaning kind of leading a more leaner company after taking out so much fixed cost expense from the business.

Right. So I think, Spencer, first of all, I think that when the business schools do their analysis of companies and how they responded during the pandemic. I'm really, really confident that we will show well in terms of all the -- so the second quarter of last year, our team really came together, as we mentioned, we took out a lot of fixed costs. We did a lot of transactions, and we sold off businesses and really focused on our core mobility delivery and freight businesses. And it does put us in a better situation today. If you look at our P&L, which I know all our investors are looking at. As we continue to move forward, the reason that we leaned in on investing in supply was to try to actually help because nobody likes to get into Uber and have it -- a, that ride be unfulfilled or worse get surged. And so that's why we're leaning in right now. That's why we're really pushing hard, particularly in the U.S. in terms of getting drivers back on board because we actually want that magical experience. And the team is really focused on getting towards that. What we have seen is there is a lot of elasticity, if you will or inelasticity on pricing and people are willing to pay more because they want to get out and they want to go places. It's funny, New York posted an article about somebody today, and the person was just making the trade-up about a $35 Uber ride or a $3 subway. And so there is a point in which people make that trade-off, I think. But unfortunately, right now, the subway system isn't viewed to be safe. And so I'm not suggesting it is or isn't safe, I'm just telling you what the view is. And so -- and again, as I said, New York City, yellow cabs actually are operating actually way below prepandemic levels. So we actually have seen that people are willing to pay because they want to get out. Obviously, over time, it's in our -- what we want to do is make sure that the ride is efficient and is good value proposition for our riders, while our drivers are also earning well on it. And so that's really what we're going to. And so you can see that we're going to move towards kind of longer -- pre-pandemic, what an Uber ride cost, and we think we'll get there. And again, as I said, the real key to unlocking the TAM is continuing to build out on more efficient products for our users.

Okay. And then I just have one for Jill. Just from the regulatory front, I guess, if you could kind of just parse out kind of the little nuances that occur within regulation as it relates to the 2 businesses, mobility and delivery. I guess, what are kind of your near-term thoughts around how regulation is going to evolve across these 2? And how they might differ to people that aren't as familiar with regulatory issues.

Sure. So they're mapping pretty closely in the U.S. in terms of how we saw a ridesharing business regulation evolve over time. Outside the U.S., there's an important difference. So food outside of the U.S. is largely delivered on 2 wheels. So what we're seeing is there's a lot more regulatory focus on safety issues. And so from our perspective, one of the things that we've tried to do working together with product and engineering is to launch new safety features and new product solutions so that we're ahead of where we expect the regulatory debates to be going in these countries. So I think that's an important distinction is that there as much. Whereas on the ride side, we proactively because we want to be the safest ridesharing platform in the world. We proactively moved into safety. On the delivery side, this is definitely an area of intense focus, and it makes sense, right, because of how people are using bikes to deliver food in cities.

Okay. All right. Makes sense. With that, I'll turn it back over to Mark.

Okay. Let me ask you a question maybe for both Jill and Nelson. The -- in the U.K. where you took a charge related to starting having to reclassify drivers as full-time -- as employees. So I guess, the 2 things are, what's the probability that the U.K. conclusion gets adopted in multiple different markets. And what -- how well can you handle -- what was the financial impact of the U.K. on your profitability in that market? Was it materially impactful to the profitability pre and post the reclassification of workers there?

So I'll handle the first part, and I'll let Jill talk about both opportunities. So in terms of the profitability, Mark, so the worker classification resulted in us providing benefits on things like holiday pay, on pensions and others. It amounts to about 8% of the gross bookings. So today, what we're doing is we are not passing it along. We are eating it right now. And that being said, what I would say is that then the second question becomes, both in terms of what are we doing to level the playing field? And then what do we think in terms of how this might result in other places in other parts of the world. So for that, I'll let Jill answer both of those sides.

Yes. So first, I want to make clear that the worker status is a unique to U.K. classification. So it sits between independent contractor and employee. It's not full employment. Our #1 job is -- and so it's a very unique thing to the U.K. And so I don't see a contagion risk for this to go elsewhere. Our #1 job in London and Nelson and Dara asked me about all the time is to level the playing field to ensure that other operators in the market are at the same -- similarly situated as us. And so -- and I think you can expect to see that happen. Addison Lee wasn't even allowed to appeal their worker status claim recently. Their same conversation happening around [ bolt ] and other players in the market. So that's what's happening in the U.K.

Okay. And then, Mark, once we level the playing field, the opportunity then to mitigate that 8% will change dramatically. So the price of an Uber or a light competitor versus black cabs is substantial. And so the ability to pass that on, like we've done in other jurisdictions will occur. And so that's how you'll mitigate that in terms of the longer-term profitability question. I think that you were asking in the U.K.

Okay. Great. A quick one, Nelson, that high 30s gross bookings run rate for mobility that you're referring to the month of May, not the most recent week?

I think I was talking the most recent weeks.

Most recent weeks. Okay. And then just prior to COVID, I think you had exceeded 30% segment margins in mobility, January, February of 2020. If you get back to those bookings levels, given the cost efficiencies you found or have been forced to find in the business, how much higher could margins be?

So yes, I think that the January, February, and you heard us -- you heard us talk about it were a good reflection about the profit pools and the profitability of our core mobility business, Mark. And I think what will happen is, over time, as we get back towards those levels and getting to that, I think, obviously, will be attainable. The second question is going to be how much of that will we invest as we start thinking about new verticals? And that's just a capital allocation question we have. Because remember, we don't separate out rideshare versus hailables or some of the other stuff we're trying to do, Mark. And so what I don't want to do is I don't want investors to be stuck on, okay, as we get back to the business being a $50-plus billion, $60 billion, $70 billion gross bookings type business that we will -- we'll just let it ride to the bottom. So we'll just have that dialogue. We'll make sure we have very strong profitability, but we will also invest back in terms of trying to build out the TAM. And whether it be on hailables or on shared rides or on reserve or on other parts as we continue to build our segmentation. But again, I think really what it was indicative of the earnings power of the platform.

All right. In the back half of this year, you've guided -- you've given the expectation that you'll reach EBITDA breakeven, is the -- will the philosophy be to always run it at profit once you reach breakeven to have consistent profitability after that? Or would there be time on in which you'd be willing to get back into negative overall EBITDA levels for investment reasons?

So you're talking to the CFO here, so Dara might have a different answer. But certainly, I would like to see the business not just achieve breakeven from an EBITDA perspective but continue to build it and grow, Mark. To the extent something came across that, we thought was a tremendous investment that we wanted to lean in. We would obviously telegraph that. And obviously, all of our investors knew as well who knows, we've played it pretty straight down the middle, and we've tried to tell you when things are coming and then just go do them. But the expectation is we continue to grow and manage our capital allocation appropriately. So we can fund the things we want to fund, probably make some trade-offs on things we weren't, but definitely want to continue to deliver good profitability and growth for our investors.

Okay. Last question, Nelson. This has to do with the synergies between the delivery and the mobility segments. Where do you think those realized synergies are? There have been a few data points here or there in terms of being able to offer drivers, options to go either way, depending on where the market demand is. There's this data point about the percentage of new Uber Eats users that come from the super app that essentially come from the rides -- the mobility part of the business. Where do you think you are in terms of tapping into the potential synergies between those 2 businesses?

No, I think we're still early days. And again, one of the things we did last year, as you know, is Dara not only brought in a Head of Engineering, but we consolidate a product under one person. And so Dara spends a lot of time with Sandeep as we think about how do we optimize the interactions across both sides if you will, understanding that sometimes the product is a little bit different. So what we learned from Drizly, which we're still trying to close the transaction, it's very much product-driven, Mark, which is very different than the Uber app that everybody knows on rideshare. And so it's still early days. We know there's a tremendous amount of opportunity, particularly from a brand standpoint, particularly on some of the -- the base tech that you know about, certainly in terms of offering our earners an opportunity to either drive or deliver on our platforms. And obviously, as an acquisition tool in terms of new users, which I mentioned earlier. And so all of those are still true, and we're seeing the benefits of that. And so again, we -- it is still early days, but one of the things we did last year when we focused down on mobility, delivery and freight, was to enable us to create more of an ecosystem, if you will, to work across the platforms versus all those other businesses that we also were supporting.

Okay. Great. That brings us to the end of our time. I definitely want to thank you, Nelson Chai and Jill Hazelbaker from Uber. Very much appreciate your time, and wishing everybody a great rest of the day.

Thank you very much.

Thank you.