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

Welcome to Uber's Investor Day 2022. We welcome to the stage Balaji Krishnamurthy, Head of Investor Relations.

Good morning, and welcome to Uber's very First Investor Day. I'm Balaji Krishnamurthy, Head of Uber's Investor Relations. And on behalf of Team Uber, I want to thank you for joining us in person in New York and virtually from around the world. Over the next few hours, you will hear from 9 senior Uber leaders, starting with our CEO, Dara Khosrowshahi, and ending the formal presentations with our CFO, Nelson Chai. We've structured the day in 2 parts. We will start with 4 presentations, followed by a short break, 5 more presentations followed by a Q&A with analysts. For those of you here in the room and we have a packed house, we will have a networking lunch following the Q&A session. After the conclusion of the event, we will post the slides, a transcript and the video replay of the event to our IR website. We truly appreciate you taking the time to learn more about Uber, and I look forward to following up with many of you afterwards. Before we start, I must let you know that we will be making forward-looking statements and presenting both GAAP and non-GAAP measures during today's presentation. So I ask you to review the disclaimer on the screen. Forward-looking statements can be identified by terms such as believe, intend, expect or may, and you should not place undue reliance on forward-looking statements. Actual results can differ materially from forward-looking statements and we do not undertake any obligation to update these forward-looking statements. For more information about factors that may cause actual results will differ materially from forward-looking statements, please refer to our filings made with the SEC, which are also available at investor.uber.com. With that, let's kick off with a short video. [Presentation]

We now welcome to the stage Dara Khosrowshahi, Chief Executive Officer.

All right. Everyone, thank you so much for joining us in person today. Really appreciate it for those of you who couldn't join us or joined us virtually; welcome. And a special welcome to members of our Board of Directors, including Ron Sugar, our Chairman, we're very glad you could be with us. So 2 years ago, just this week, we reported earnings for just the third time as a public company. I hosted the analyst call actually from our New York office, where no one was wearing a mask. No one had a drawer full of rapid tests, and I didn't get a single question about the coronavirus. On that call, we reported our highest gross bookings ever as a company. We reported an improved adjusted EBITDA loss of $615 million. We moved up our profitability target, and the stock continued to rally that has seen our stock price increase by over 50% over the past couple of months. We were feeling pretty good. What a difference a month made. By March, the coronavirus had locked down the entire world and our stock had hit all-time lows. Nelson and I were fielding serious questions from investors about whether or not we had enough liquidity to get through the crisis. Well, we're still here. And 2 years into the pandemic, the world looks entirely different than anything we could have expected as does Uber. The results that we reported yesterday demonstrate just how much progress we've made as a company and how much we've changed. I'm proud to say that we reported another record quarter of gross bookings. We also reported $86 million in adjusted EBITDA profit. There's an improvement in terms of gross bookings of nearly $8 billion and adjusted EBITDA of over $700 million from that quarter just 2 years ago. Now if you step back, go back a bit further 2 years earlier. This is just after I joined the company and compare our results for the fourth quarter of 2017, you get an even better sense of our progress over time. Over that time, we have increased our audience or MAPCs compounded at 15% per year. We have deepened our engagement with our consumers, increasing gross bookings per MAPC at 11% per year. And that has resulted in CAGR of our gross bookings of 27% per year. That's astonishing given how significantly our business which used to be a mobility-only business had been impacted by the pandemic. So how we do it, and more importantly, where are we going next? I'd like to say that crisis forces focus and focus forces ingenuity. The pandemic forced us to take a hard look at what was best serving Uber and shareholders. What we did well, where to invest, where to innovate and also where to pull back. And we made some tough calls like rationalized our headcount by 25%, exiting several delivery markets, merging in our micro mobility businesses and autonomous businesses into other leading entities as well. But this freed us to focus on getting mobility back on its feet, playing offense and supercharging a delivery business and building a world-class digital freight competitor. Today, Uber is a technology platform operating at unparalleled scale and serving multiple multi-trillion-dollar markets across mobility, delivery and logistics. Throughout the ups and downs of the pandemic, we found ourselves in a unique position of having 2 segments that prove to be complementary. We leverage each to enhance a platform that you hear more about, that continue to get stronger throughout the pandemic. As cities locked down, millions of consumers and businesses came to rely on Uber Eats for delivery of food and many, many other goods. And as cities reopen, people quickly started taking Uber rides again, often faster than other forms of transportation. So we focused, and we doubled down on our core strengths, helping people go anywhere they want and helping people then get anything they need. And we, as a company, are emerging from the pandemic truly as an all-weather company. So that's where we've been. What's next? First, our mobility business. Since I started talking to you today, Uber has moved 100,000 people around the world. These are people going to work, they're dropping off kids at school, they're visiting their doctor or they're meeting their friends. They're traveling in individual and shared car, public transit, private buses, bicycles, motorcycles, taxis, 3-wheelers, electric and yes, soon, we hope autonomous vehicles as well. We're the only player with this kind of breadth globally at scale. Our global leadership position and the vast amounts of marketplace data that comes along with it means that we have the best technical and data platform, and we can go to market faster than anyone else. And at the same time, our local scale allows us to deliver a better consumer proposition or more better reliability and higher earnings for our drivers. These are self-reinforcing loops. You'll hear more from Mac about how we're uniquely positioned not only to strengthen our core rides business, but to build new businesses in mobility verticals that can use a little bit of that Uber magic. Next, delivery. While we always believe that over time, consumers will come to love getting food and pretty much anything else eventually delivered to their doorsteps, the pandemic compressed what would have been a 3- to 5-year shift into just a few months. Uber Eats has now become an integral part of people's daily lives of 32 countries. And our delivery business now is bigger than mobility was at its pre-pandemic peak. Our goal here is simple, to deepen engagement with our customers for fast, frequent usage across grocery, alcohol, convenience and more. And you'll hear much more from Pierre about our plans for delivery later on in his presentation. Third, freight. As a result of this pandemic, discussions about our supply chains, they're now kitchen table discussions. And it's clear that the old ways in which we built our logistics systems just aren't serving us anymore. We need to create new digital first systems that can adjust real-time to changes in demand and local patents. Freight has continued to grow its size and scale and capabilities of its marketplace, putting the power of its data in the hands of carriers and shippers as they build a seamless digital freight ecosystem that's going to move us forward after these challenges. Our company now is stronger than ever. But the real reason you're all here today is to better understand, but why should I invest in Uber? We know when you can invest in mobility, pure plays. We know you can invest in delivery, pure plays or even logistics pure plays. Why should I invest in Uber? The complementary nature between mobility and delivery that sustain us throughout the pandemic has become a powerful synergistic platform relative to other players that only have 1 line of business, our platform is giving us an advantage that's compounding over time and is getting bigger and bigger. Strategy here is pretty simple: bringing in as many new customers as we can throughout our mobility and delivery front ends then we convert them into active cross-platform consumers and tie everything together with a first-class membership program. Increasingly, it doesn't matter if your first interaction with Uber is a rideshare trip, a car rental, a scooter ride or grocery delivery. Once a consumer starts to use one of our services, we're able to quickly show them everything else that we can do for them. Because of this unique multi product advantage, we can acquire customers at a lower cost and generate higher lifetime value than our competitors. People who use multiple products also spend more and retain at better rates than our own single product users. And we've really started to lean in here. You may have already noticed this in your app, for instance, will prompt you to order groceries if you're near destination or on trip and will show you restaurant near your destination as well. We're also getting much, much smarter about targeting users for the right product at the right time, at the right place using our rich data sets. Our machine learning algorithms are sharing data across both mobility and delivery and they're getting smarter every single week as they optimize more and more. This is going to reduce customer acquisition costs and increase retention even further. Add on to that, Uber One, our unified membership program across both mobility and delivery and the platform advantage becomes even bigger as members use more of our products more often. These consumer segments are big, and they're growing with lots of room to run. Today, 46% of our gross bookings come from cross-platform consumers, 46%. That's up 4% year-on-year and only 17% come from members, but that's up 6% year-on-year -- 6 points during the year. It's also important to note that the same is true for drivers and careers. We can attract more people to the platform by offering more kinds of work, which translates into better earnings and higher retention for those earners. This platform advantage shows up in all parts of our business. For instance, we can sell a combined mobility and delivery enterprise product to businesses. You'll hear more about that from Susan. We can offer unique audience across both delivery, grocery and mobility, for example, which Mark will talk about later. And we can use their large data sets to build, launch, scale new products globally faster than anyone else. Sundeep will talk to you a bit more about that later as well. So I'll go back to my original question, why Uber? We have leading positions across mobility, delivery and freight. These are enormous categories, each of which represents multi-trillion-dollar opportunities. Relative to other single product competitors of ours, our multiproduct platform gives us an edge that is emerging and is going to compound over time. And these leading the combination of leading businesses and our platform advantage translates into an attractive financial profile. What you'll hear from Nelson is high growth rates compounding at scale, improving profit margins going forward and significant free cash flow generation. At Uber, we wake up excited every day to reimagine movement for the better. We're the only company focused on letting you go wherever you want, get whatever you need. This is the best time to build at Uber. And Mac, one of our builders is going to first start talking about mobility. Thank you.

Thank you, Dara. Hi, folks. I'm delighted to stand in front of so many of you today and talk about the future of mobility at Uber. It's a topic that has dominated my thinking and frankly, my life for most of the past 10 years. I still remember my first Uber trip, late at night on a bitterly cold winter evening in Toronto, with a group of friends who are equally as amazed as I was. I'm sure many of you remember your first Uber trip, too. There was something undeniably magical about pushing a button and getting a ride. And there still is today. It's easy to take for granted now, but Uber really has revolutionized the way the world moves. We've come a long way since those days from a handful of cities to more than 10,000, with a global footprint and a leading position in the vast majority of our markets. We've grown from black cars and SUVs to bikes, scooters, mini buses and everything in between. Of course, the journey wasn't without its twist and turns. Back then, we operated in what many would call a gray zone. And we didn't always get our introductions to cities quite right. But as we still do, we deeply believed in our mission and what we were building. And today, I'm proud to say that ridesharing has been recognized and legitimized in almost every major market around the world. That was unthinkable just a few years ago. So it's been an exciting 10 years, but I'm even more excited about the next 10. Despite our scale, we still have an enormous opportunity to make every journey better. And we mean every journey. Our vision is to be a part of your trip every time you leave the house. Instead of monthly or weekly, we aspire to be a daily use case. We'll do that by deploying our secret sauce, which is putting a best-in-class technology layer on the physical world. So let's talk about how we make every journey better. First, we still have a lot of untapped potential in the markets where we already operate. Second, we can deepen engagement with consumers with new use cases that build on our core rides proposition. Third, there is an enormous growth opportunity to be unlocked by structurally lowering transportation costs. Fourth, there are adjacent categories with unmet consumer needs that desperately need to be uberized and will help us chip away at personal car ownership. And finally, I'll talk about the future. which we know will be electric and ultimately, autonomous. Okay. So let's get into it. First off, even though Uber has become a verb, we still have a huge amount of untapped growth potential in the markets where we operate today. Even if you look at our biggest markets, only a fraction of the population uses Uber in a given week. That's just 7% in Brazil, 4% in the U.S. and single digits across all our major markets. Even if you look at the percentage of people who have ever used Uber across our top 25 markets, the median is just 22%. That's still a lot of room for growth. To put that in perspective, -- if the U.S. reached the weekly saturation levels of Australia, that's an incremental $14 billion in gross bookings annually. If India reached the levels of Brazil, I mean 10x the number of weekly active users and $15 billion in gross bookings. More than all that, there's still a lot of large economies around the world where Uber isn't yet a household name. A few years ago, we set out to change that. And we've made some really great progress. In Spain, we operate by acquiring licenses for fleets who in turn employ drivers. Our Spain business has more than doubled since 2018 and is now operating close to our long-term profit target. Additionally, we think we can double that business again in the next 3 years. In Germany, it's a similar story by working with regulators and adapting our model, we've grown the business from near $0 in 2018 to $400 million in annual run rate gross bookings. In South Korea, we took a different approach. We found a great local partner in SK Telecom. We now jointly operate a JV called UT going after the $7 billion Korean mobility market. And by the way, there are other countries like these, for instance, Italy and Japan that we're currently working to unlock and where we hope to get the same results. So -- that's 1 prong of our strategy to take the concept of Uber to more people, but we're also working to expand what it means to take an Uber. The UberX consumer proposition is great. Open the app, push a button and a car shows up. But right now, UberX is trying to be everything to everyone. What if you're willing to wait longer or share your ride for a cheaper fare. What if you want to book a month in advance instead of on demand? What if you want to take a 2-wheeler or a 3-wheeler to go faster and cheaper, the what-ifs go on and on, and we intend to answer every single one. One good example of how we're changing what it means to take an Uber is prebooking. Since the beginning, Uber has been known for on demand. When you want a ride, open your app and a car will show up in 3 to 5 minutes, but habituating people to prebook travel on Uber unlocks an enormous transportation category for us. Today, the majority of transportation globally is booked in advance. But for Uber, that number is just 1% around the world and 6% of gross bookings in the U.S. and Canada. In exchange for certainty and a superb customer experience, we are able to price these trips at a premium to UberX, which means that drivers earn more and mobility margins improve. There's another huge category and use case that Uber has not historically served well which presents an enormous opportunity, taxis. Today, taxis and other street hail vehicles still represent a highly fragmented $120 billion industry with 20 million active vehicles on the road. To put that into context, -- that's more than 2x the size of Uber's pre-pandemic mobility business with more than 5x the number of active vehicles. Now I understand the irony here. The Uber guy is telling you that taxis are the future. But when we look at the next 5 years, we just don't see a world in which taxis and Uber exist separately. There's too much to gain from both sides. That's why we've set a very ambitious goal to put every taxi on Uber by 2025. By using the same technologies that have underpinned the growth of RideHail, we are bullish on the impact we can make in this segment. Taxis help us unlock new markets. It's now our primary product in places like Turkey and Hong Kong. Taxis also increased driver supply. Last year, we added 122,000 new taxis to the platform, which represented 3% of all earners who joined Uber. And we've already seen this work with 2.5x the business last year, showing that this is working, not just for operators, but consumers as well. Adding more modes of transportation to the platform doesn't just bring in consumers -- doesn't just bring in new consumers, these consumers spend more and are more loyal. For example, we see that users who use more than 1 mobility product spend up to 3x on the platform compared to single product users. This cohort also has significantly higher retention. We can also cross-sell and upsell between mobility products. For example, users who come on to Uber taking a taxi trip, of those users, 35% go on to use other mobility products. If we got every 2-product user to become a 3-product user, that would represent an incremental $5 billion in mobility gross bookings annually. And we're already well set up to do this. We have a strong competitive advantage in launching new products and scaling them efficiently and globally. And each new product we add helps consumers consolidate more of their mobility activity on to Uber. As we build out new use cases, we are laser-focused on affordability. In the majority of our markets, particularly emerging markets, we recognize that the vast majority of our TAM sits at price points lower than UberX. Simply put, we need to bring down prices to make Uber more accessible to more people. Lowering prices doesn't just grow our user base. It helps us build out an ecosystem of affordable multimodal transportation from shared rides to micro mobility to public transit, which continues to be a powerful ally to Uber. Together, we can take on our ultimate competitor, personal car ownership. We will lower prices, not by slashing driver fairs, but by innovating on new products that leverage network density, excess vehicle capacity, more affordable vehicles and by operating the most efficient marketplace in the world, which means we can pass our structural cost savings back into the marketplace. So let's talk about a few ideas here. One way we're reducing prices is through a new shared rides product. Some of you will recall that just about 2 years ago today, we actually shut down Uber Pool globally in the early days of the pandemic. Since then, we've been working on revamping shared rides under a new banner called UberX Share. Rather than steep discounts upfront, UberX Share offers a fixed 5% discount and Uber Cash back to the rider only if you're matched with another rider. The core unit economics are great and by offering a bigger discount only if you match, we fundamentally align the interests of Uber, of riders and drivers. Getting more people into fewer vehicles creates efficiency in the transportation ecosystem, advancing our sustainability goals while lowering prices. That gets us to daily usage. Another area I'm really excited about is High Capacity Vehicles. You're probably thinking, Mac, that's just a bus. But this is actually a little bit different. Today, in many emerging market megacities, millions of people rely on informal, private bus systems for their daily commute. These are often slow, unsafe, overcrowded and stressful. This is more than just inconvenient, it impacts people's lives. Many women in particular choose not to pursue certain opportunities because they feel unsafe commuting. The combination of Uber's marketplace innovation and on-the-ground operational expertise means that we can solve this problem better than anyone else. Bringing Uber's technology to this segment, we're working at to enable access to a safer and more reliable commute at a quarter of a price of an UberX. We're seeing really good product market fit, despite many people still working from home, HCV is growing quarter-on-quarter, and HCV users are taking more trips per month and per week than UberX users in comparable markets. We also got a B2B opportunity here. We're partnering with businesses around the world who want to offer their employees a better commute. Just last year, and in our first year with our business offering, we signed deals with Nissan in Egypt, Toyota in Brazil and Tata Realty in India. So while putting more people in shared vehicles is one way we sustainably lower costs, another is more affordable vehicles to begin with. To that end, motorbikes and auto rickshaws are important parts of our low-cost portfolio. Autos and motors are fast growing and financially sustainable, while unlocking a massive TAM in emerging economies by offering rides at less than half the price from an UberX. In many parts of the world, 2- and 3-wheelers are really popular both as mobility and delivery vehicles, thanks to their low cost and small size. Putting them on our platform solves major consumer pain points around reliability and price transparency. Autos and motors have also proven to be a great user acquisition lever. 10% of all first time riders to Uber last year came through a 2-wheeler or a 3-wheeler trip. Both of these businesses have recovered faster coming out of the pandemic than our core business and are profitable in 9/12 operational markets despite the lower price point. Underpinning all of this work to make every journey better is our commitment to be the best platform for earners. 2021 saw significant driver growth with monthly growth rates, 2x the rate of 2019. We did this not just with record high earnings on the platform, but also by -- with foundational products and earner experience improvements that made driving on Uber better. One way we did this is by rapidly growing our employee driver program, which more than doubled last year. Dara set the tone for the company here by getting behind the wheel himself because that's really the best way to experience what it's like to be a driver on Uber. We quickly uncovered and fixed more than 300 pain points, big and small, everything from the legibility of certain fonts to major foundational navigational improvements. These features as well as the superior earnings opportunities available only on the Uber platform, you'll hear more about that from Sundeep later, have led drivers consistently prefer Uber. In fact research indicates that earners prefer driving for Uber versus all our major competitors in all our major markets and we are going to keep innovating to ensure we improve the experience and keep this edge. So thinking of it bigger, we believe we can gradually help display personal car ownership by systemically finding ways to make it easier to not own a car. Take car rentals, anyone who has waited in line at a rental car counter knows it's not the quickest or easiest experience to say the least. But what if a rental could show up at your door in 20 minutes, that is such a radically improved experience, it starts to change the car ownership calculus. And it opens up the $55 billion rental car TAM for Uber, $30 billion of which is in the US. This experience is live today in Washington, D.C. with Uber Valet. We work with Avis to allow you to press a button and get a car dropped off, and we'll even send a driver to pick it up when you're done. Still in the very early stages, but we're seeing some great signals and we expect to expand this to more markets this year. P2P rentals, Think of this as the Airbnb for cars is another huge opportunity. We all know that most cars sit unused for 95% of their useful life. Last month, we announced the acquisition of a company called Car Next Door, a great company that's been pioneering this type of car sharing in Australia. Our initial focus is going to be helping them scale the neighboring market, but we do think the opportunity here is global. Now let's speak about a few major shifts in mobility and society that Uber is going to help usher in. First, electrification. It's clear that the future of transportation is electric and when we look a few years out, Uber has a huge role to play in the world's transition to electric vehicles. That's why we've set an ambitious commitment to get to 0 emissions by 2040. And we're making really good progress on that goal. We're making it easier for riders to choose hybrids or EVs by launching our Uber Green products in hundreds of cities around the world. We're making it easier for drivers to transition through financial incentives and through innovative partnerships like our deal with Hertz to allow drivers to get Teslas and drive them on the platform. It has proven hugely popular, by the way, with a wait list in the 1,000s. Building towards this future is not just the right thing to do. It's also great for Uber and our users. EVs have lower operating costs, which means driver earnings go up and rider prices go down. It's a win-win-win, for our customers, for Uber and the planet. Finally Autonomy. While it won't happen overnight, we expect autonomous vehicles to be an increasingly important part of the transportation ecosystem. And therefore, Uber's business over time. Lower prices to autonomous innovation will materially increase the size of the mobility as a service of TAM. We estimate that reducing the price to $1 per mile will meaningfully expand the category for us. Rather than building AVs ourselves, we've decided to bring AV developers fleets onto our network. As the largest mobility platform in the world, we are uniquely positioned to do this. There is simply no other network that can provide one-stop access to a global marketplace across mobility, delivery and freight. Of course, AVs are still student drivers. They won't be able to handle every type of trip for many years. We're really well set up for this hybrid world. We can use AVs on our network where they can thrive and our core network where they can't. Our ability to offer this Turnkey adoption path along with our hard line operational expertise of running a global ridesharing business will ensure that most AV providers choose to partner with Uber rather than building their own rideshare network. In 2022, you'll see us launch a number of pilots in the U.S. and begin to introduce consumers to a world where they won't need a driver's license. I'll close by quickly touching on how we intend to bring all these ambitious plans to life. Over the last 10 years, we've turned our core mobility operation into a highly efficient business with compounding growth and a strong margin profile. We've emerged from the pandemic on even more solid footing with a much leaner operating cost structure. In the years ahead, we will strategically invest in -- we will strategically invest our profits from the core business into new prices -- or new products and structurally lower prices for riders while maintaining our preference amongst drivers. Our unique technology and operational advantages as well as our global platform mean we can quickly double down on products where we see product/market fit, by scaling quickly we'll turn experiments into growing and profitable verticals and we repeat the cycle all over again. We are confident that 2022 will be less about recovery and more about the future. A future, in which our industry-leading scale, unrivaled operational expertise and unique platform advantages mean that we will win. In closing, I want to reiterate our overarching goal to make every journey better. We'll do that by strengthening our core, expanding our product suite, reducing prices through innovation, offering more alternatives to personal car ownership and leading the transition to electric and autonomous vehicles. Ten years in, I'm incredibly proud of what we've accomplished. But I get up every day, excited about what's ahead. Thank you and I'll now turn it over to Pierre to talk about delivery.

Hello everyone. Thank you, Mac. Hello, everyone. I'm here. I am very excited to be here today with all of you. Like Mac, I am an old timer by Uber Standards. I joined this company more than 9 years ago. I've spent most of my time actually focusing on the mobility business. Until early 2020, when I started leading the delivery business, which I am going to talk about today. To give you context, delivery at the time was a solid $17 billion annualized GB business, growing at hasty rates, but it was very much the little brother or sister to the mobility business. So when I took over the team on the February 25, 2020, I was excited to see where we could take this promising business over the next 3 to 5 years. I obviously had no idea that 3 weeks later, everything would change. Uber Eats will become lifeline not just for millions of businesses and consumers, but also for Uber itself. I'm happy to say that we didn't just make it through. Our business actually thrived with more than tripled since the start of the pandemic, strengthening opposition as the largest food delivery platform outside of China. But importantly, we also seized the moment to fundamentally transform delivery at Uber, going beyond restaurant food delivery into new categories like grocery, convenience, alcohol, pharmacy and all the types of local commerce. As Dara said earlier, the pandemic accelerated a structural shift in consumer behavior. What would have been a 3- to 5-year shift just happened in just a few months. And I can say with conviction today that the delivery is here to stay both in consumers lives, but also in Uber's overall business. We see very clearly that even in cities that have reopened, our delivery business is not just holding up, it is actually growing. We operate in a massive TAM and this huge growth is still ahead of us. The delivery penetration as you can see here is still extremely low across the restaurant and the grocery categories, not even to mention retail. Capturing just a small fraction of this opportunity would actually double our delivery business today. So there is an enormous opportunity ahead of us and it is Uber's for the taking around the world, we are best positioned to win. Our long term goal is to become a go to partner in people's daily lives by providing them instant access to all of our local commerce, the best of your community brought to your doorstep. And we are already about much more than food delivery, whether you need to replace that lost iPhone charger or pick up a bottle of wine on your way home, Uber Eats is here for you helping you get anything you need delivered to you. Now I'd like to show you an ad, a Super Bowl ad that I think brings to life if you haven't seen it in a pretty funny way the fact that Uber Eats is already about a lot more than eating. [Presentation]

I love this ad. I think it's my favorite one. Okay. So now that I have made you hungry for light bulbs and toilet paper, I'd like to take a moment to update you on where our core delivery business is today both the traction we seeing in the U.S. and our continued international strengths and then I'll move to talk about where we are headed and how we are expanding into new types of verticals like grocery and others. Of any player out there, we are best placed to capture this global opportunity. We have global scale, leadership position in 7 out of our top 10 countries. We have an engaged user base across both the Uber app and the Uber Eats app, which we can cross-sell new products to. And finally we have world-class technology that is allowing us not just to provide superior experience to consumers, to owners, to merchants, but actually also take costs down and create a sustainable unit economic advantage. Our core delivery business today is now adjusted to be that profitable and we expect margins for that business to keep improving and this is really important because this means we can actually self-fund investments into our future growth, into areas like grocery, that I'll share about in a minute, without compromising the profitability profile of our overall delivery business which is now profitable as of yesterday. So we benefit from a profit pool, allowing us to put more dollars and work at our competitors. But of course, winning in this space isn't just about reinvesting profit. It's actually about execution and technology like we have been seeing in the U.S., for instance, which is where I want to turn next. While we are resolutely a global business, the U.S. is naturally very important to us, and I know it's top of mind for all of you, too. And over the last year, we have made significant progress in the U.S., both in key markets like here in New York and across the country. We have started gaining category position at the beginning of the second half of last year, building up on the leadership in European centers where we are the leader nationally, but also strengthening a position in suburban areas. We exited 2021 as the fastest-growing delivery player in the U.S. market while improving our margins by more than 250 bps on a year-on-year basis. Such progress results from deep improvement in our core business fundamentals, restaurant selection, courier growth and reliability, but also [ Eater ] acquisition. And all of those were funded by major efficiencies we were able to extract through our technology and our relentless focus on execution. Our global tech platform is actually one of our biggest assets. As an example, the recent improvements we have made in courier pricing, which are powered by machine learning models, actually helped us lower fulfillment costs by more than $100 million in the last year. And this is just 1 side of the marketplace, and this is just the U.S. We are actually leveraging our tech across all sides, including the [ Eater ] side of things and how we deploy promotions, for instance, to make that more efficient every day. Our teams are working across the board to increase the efficiency of operations, making space in our P&L to reinvest in long-term growth drivers, which is really how we win. Now zooming back out to examine our international business. It's a clear story of not just growth but also profits. We launched in many of the largest food delivery countries in the world in 2016 and we now enjoy a leading position in about 70% of our international group bookings with the remaining 30% being markets where we have a strong #2 position. Those results have been driven by strong execution, technology, our ability to adapt our platform to the local realities of each and every of those countries; and finally, a disciplined approach to capital allocation. Our international business is now profitable with expanding margins and is a true competitive advantage for us as Uber. And I'd like to turn now to 2 of our top international countries, which I think provide a good overview of the health of the international portfolio, but also successful formulas for us to use elsewhere. The first one is Taiwan. Taiwan is one of our -- has emerged as one of our strong markets. From an operational perspective, it's a country where we have seen a positive trifecta of rapidly compounding growth, improving financials. That business is now almost profitable. And finally, all that while maintaining a leading position in the market. And those resources have really been powered by a deep focus on operational excellence. To give you context, we deliver in Taiwan in 27 minutes on average, more than 60% of the trips are actually batched together, creating efficiencies. We've also invested in quality selection, which is creating differentiation versus competitive platforms in the country. And finally, we have leaned hard into membership. Taiwan is actually a great case study for us as to the power of our membership program. More than half of the gross bookings we have in Taiwan are actually done by members from about 10% before the pandemic. And what we see is, actually, this membership program is driving a huge increase in consumer engagement. On average, in Taiwan, the members we have are making 16 orders every single month. This is a great North Star for us and other countries to aspire to. Now moving to France, my home country, but this is not what we -- why we're talking about France today, perhaps surprising given its deep foody culture, bustling sidewalk cafes, French people have really embraced delivery and Uber Eats has emerged as a clear leader in the country since launching about 5 years ago. Like in Taiwan, we have seen in France, its deep trifecta of compounding growth, improving financials. France is actually one of our most profitable markets around the world, but also strengthening category position, like you can see here. Those results have been powered by our aggressive expansion. Just in 2021, we added 350 cities to the Uber Eats map in France. We cover about 60% of the population. We've had also a relentless focus on selection. We have about twice as many merchants available on Uber Eats app in France than competitive apps out there. And finally, some very successful brand investments that have built Uber Eats as a beloved brand in the country. France is home to the only football soccer league that bears the Uber Eats' name, the Ligue 1 Uber Eats, which has really proven to be a worthwhile investment for the Uber Eats brand to be top of mind for consumers all year around. So now that I have established what we've accomplished, I'd like to talk about where we're headed. I talked to you earlier about the enormous opportunity in the grocery space. I think we can all agree that things like pet food, last minute dinner ingredients are better on our doorsteps than a car trip away. And this is an area we've been investing a lot into over the past year, both organically but also through the acquisition of Drizly and Cornershop. Our belief, our conviction is that by offering selection depth across categories, we are able and will be able to move from a once-a-week use case to actually a daily use case delivering whatever consumer needs, whenever they need them, every day. And we're happy with our progress to date since launching in 2022, this grocery and new verticals offering. Today, it represents about $4 billion GB run rate for us. We hold the #1 or strong #2 position on on-demand grocery in 8 out of our top 10 countries. And while grocery delivery is certainly more established in the U.S., we believe that a large part of the opportunity actually sits outside the U.S. where penetration for online grocery is way smaller. And this is where we've actually had disproportionate traction. You look at countries, for instance, like Japan and France, we are #1 in both of those countries on online grocery. They represent about $600 billion of annual grocery spend combined. So I talked a lot about grocery and the reason is that this is the most natural adjacency for us to the core restaurant business. It requires the least amount of consumer behavior change from users, it's a massive spend category, high frequency, repeat purchasing that lends itself really well to same-day on-demand value proposition, but we really see grocery as an entry point into retail more broadly. In Chile, for instance, which is what you see here on this page, Chile's Cornershop home market, what we see in Chile is that after 15 months on average, a consumer would have tried more than half of the stores that a consumer would have tried or actually non-grocery stores. We are very early days still only about 4% of the overall Uber MAPCs are active on those new verticals, and we see that continuing to progress as we continue to invest in our product and experience. We are -- from a product and experience perspective, we are bringing together on the one hand, Cornershop, which has been investing in large basket grocery deliveries for more than 7 years at this point with Uber's fast and efficient operations, leading tech and global footprint. And our goal really is to completely transform the experience that users, merchants, earners have and effectively have a fully native commerce experience. And that means for us, one, making sure that we are built to support any purchasing occasion, whether this is just a few items, a large basket on demand or scheduled, making sure that our merchant-facing systems and tools are also designed to support merchants of all kinds from small ones to big global ones, and finally, improving the earner app which spans across both mobility and delivery and making sure that shoppers have as efficient as possible and as pleasant as possible of an experience. So as you can see, we are completely reimagining how grocery and retail looks on the Uber Eats app from the eater ordering flow down to post-order modifications and out-of-item replacements. We think this new experience will be transformative, and we are committed really to building a product that provides access to all of local commerce has to offer, including a rather speedy new entrance to our neighborhoods, quick commerce. So a quick word on quick commerce. Like you, we have seen growing appetite, growing consumer demand for sub-30 minutes deliveries of everyday essentials, especially in urban centers. And our conviction is that this is actually a really important part of that everyday use case mix. We are very committed as Uber to fulfill such demands, but we are prioritizing a partnership approach with the likes of Gopuff in the U.S., Carrefour in France. We're convinced that partnerships are a more effective way to scale, both quicker time to markets and more cost efficient. To put things in perspective, we have about 480 dark stores that are already live on the Uber Eats app, delivering in minutes with many more to come over the course of this year. A great example of the success we're seeing with this approach is, for instance, the offering we have in France called Carrefour Sprint, which is co-designed and exclusive to Carrefour and ourselves. Effectively, what we see with that offering in France is that we are able to deliver in 15 minutes with high fill rates, high customer satisfactions. We also see that engagement, consumer engagement, as people try that new offering actually goes up across the entire platform, including our restaurant business. And finally, we were very excited to see that those -- that offering isn't just attracting the typical consumers you'd expect, the more digital natives. We've seen, as an example, a lot of traction among senior citizens that are valuing the convenience that this offer brings and that are trusting the Carrefour and the Uber Eats brand. We think this approach is a win for all parties involved and a big opportunity. The next area of enormous opportunity in the delivery portfolio is actually delivery as a service over direct. It's an offer that was built in the spring of 2020, leveraging the technology from Postmates. As merchants and retailers around the world, we're looking for new ways to deliver all of those orders that were originating from their own apps and their own websites. Since then, the Uber Direct business has grown to support thousands of merchants around the world from use cases like parking lot pickups with Walmart here in the U.S. to actually delivering for more discerning brands like Apple, Sephora, Adidas, as an example. We think this business plays a really, really important role in the overall delivery portfolio: one, from a growth perspective as the world moves more and more towards on-demand delivery of things; secondly, that business helps us densify our courier network. And that means makes that courier network more efficient, which is a key aspect of how we win longer term; and finally, it is a great opportunity to strengthen through that business relationship with existing merchants but also prospective merchants that could join a marketplace at some point. So wrapping up today, the opportunity in this space is absolutely massive with some important growth levels I'd like to reiterate. First, in our core restaurant delivery business, we think that there is still plenty of growth ahead. We see that penetration but also user engagement, user frequency, all the frequencies are going to go up structurally over the years to come, like we have seen, for instance, in the more mature countries, I've talked about the engagement we've seen in Taiwan, for instance. Secondly, the opportunity is even larger in the overall retail space, as I've described before. And this is important because this has ramifications across the broader platform. What we see is that as people start to try more and more categories, we see overall engagement goes up on the Uber platform. And finally, membership, which is truly getting better every day for consumers and for Uber. Today, about 17% of Uber's overall gross bookings are done by members. We see that number structurally go up and help drive further engagement onto the overall Uber platform. Now if I am to leave you with one thing, it's that it is Uber that is best positioned to win and to go after this huge opportunity. I certainly feel very lucky to be leading this business in this next phase. Both here in the U.S. and around the world, we have very, very clear structural advantages, the richness of the Go Get platform for consumers, which Mac talked about. You'll hear more from Sundeep in a minute. The Uber brand which is becoming more trusted every year around the world, our best-in-class logistics technology that is not just sitting on the ground, but actually pressure tested, fine-tuned in more than 6,000 cities around the world and finally, our relentless ambition and incredibly talented teams. So with that, thank you for your time today, and I'm going to pass it off to Lior to chat about Uber Freight.

Thank you. Thank you, Pierre, and hi, everyone. I'm Lior Ron, the Head of Uber Freight, and it's great to be here with you today to talk about logistics. Now when we got going 5 years ago, logistics was this topic nobody cared about, but we at Uber Freight, saw this massive industry desperately in need of a technology transformation. So we started building. And now logistics is at the forefront of our daily lives. Consumers around the world are feeling the pain of supply chain not functioning. For me, after waiting for 6 months, I've recently just received my son's first bike for waiting 6 months for it. And walking into Party City over the weekend for my daughter's birthday, I was told balloons are in a back order of a month, balloons. I'm sure you all experienced a similar moment lately, not being able to get something you really wanted. And the reality is that we now rely more than ever on the orderly movement of goods. And behind all of these goods, behind everything we buy, there's a truck. In fact, everything surrounding us in this room was probably on a truck once, if not twice before. This is a $4 trillion market globally, almost $1 trillion just in the United States, 70% of everything that is moved around us is moved on trucks. And that amounts to almost 250 pounds of stuff moved per person in the United States every day. Truly trucking is the backbone of the global economy. Yet this industry is completely broken. Nearly every participant in this vast ecosystem is struggling. 20 years ago, the average age of a truck driver in the U.S. was 35. 10 years ago, it was 45. It's now 55. It's the same baby boomers just aging out of the industry. And the vast majority of those truck drivers are small mom and pop shops with less than 5 trucks. It's impossible for them to connect with the big shippers or run their operation efficiently. So to aggregate that very long tail of supply, you have 17,000 brokers in the United States, but they're all subscale and manual. It takes 25 manual steps to just coordinate and move a truck. So more than 10% of the cost of a truck is actually the cost of just coordinating it. And shippers facing with all this inefficiency are paying more and more and more for logistics. This is the chart that every CEO and CFO in Corporate America is staring at with logistics now being more than 5% of overall company cost growing at almost 50% year-over-year. And we, as consumers end up paying for that with ever increasing prices for basic goods. The other casualty of that is our planet. Almost 30% of all the trucks that you see moving next to you on a highway are driving empty, 30%. That amounts to more than 2% of global greenhouse emissions caused by just empty trucks going out there empty. So 5 years ago, we set to do something about this. We believe that the only way to truly affect change is to apply deep technology to this market at scale and to help digitize this vast ecosystem so information can flow in the speed of light, not in the speed of people, and we can connect all those participants to an integrated cloud to fundamentally simplify logistics. And we're very proud of what we've achieved to date. With the advent of mobile, we put an app in a pocket of more than 1 million truck drivers, creating the world's largest virtual fleet. With artificial intelligence, and data science, we're connecting the right truck at the right time for the right shipper for the right price instantly and making it the most efficient way to procure freight in the market today. And with the cloud, we're making all of this accessible for tens of thousands of shippers, creating the largest logistics cloud ever built with $17 billion of freight under management. And it all starts with truck drivers and making it better for them. The truck drivers that are the backbone of the industry who have some of the toughest jobs out there. So for the very early days, we set on a mission to transform this reality for those millions of truck drivers. With Uber Freight, carriers are now empowered to run their business on the go 24/7 with full and transparent access to the biggest shippers out there. And they are doing so while minimizing their empty miles between shipments so they can make more money and spend more time back home with their families. And they're paid for those shipments almost instantly compared to an average of 45 days in this industry, which means they can rely more on a cash flow to grow their small business. And they do all of that while benefiting from deep access to discounts on fuel, maintenance, insurance and more. Collectively, they increase their earnings and reduce their cost, making Uber Freight a very compelling option to drive with. That focus on putting driver first and making it super easy for them to run their business, allowed us to create the largest digital freight business and freight network with access to over 1 million drivers on-boarded to the platform to date, which is more than a quarter of all truck drivers in the United States. We now have critical supply density on every major freight corridor, allowing shippers to access their capacity when they need it, where they need it. And every carrier on this map is fully digitally enabled, allowing us to innovate on top of that network across the entire supply chain. Now those carriers are also very happy and loyal. As you can see on the left, they are more likely to use us than any other option in the industry. And the more they get familiar with the platform and understand the benefits, they use us more and more and more with strong growth across all cohorts. Starting a new trucking business nowadays with Uber Freight is so much simpler that we are seeing a golden age for new truck drivers entering the market more than ever before, with more than 3x more registrations compared to 2019. Now having that liquid scale, digital care marketplace for the first time in our industry makes this a much more Uber-like problem, an opportunity. We can unlock business model innovation in ways never possible before. We have a simple strategy. We build a digital network that allows us to achieve a structurally better position in the 2 things that shippers care most about, cost and service. Having all those carriers on an automated digital first network allows us to unleash machine learning to optimize that network and automate all those manual workflows and a fully optimized and automated networks mean we can significantly reduce both the carrier and operation cost, pass those savings to shipper, secure more demand, bring more carriers to the platform and actually improve the service as more carriers actually onboard to that platform. Let's quickly look at our progress to date. First, our marketplace innovation driving carrier costs down. If you think about it, this is a pretty complex marketplace challenge. You have tens of thousands of shippers on one end trying to connect with millions of carriers on the other end. And to address that, we have pioneered many industry firsts, which can only be enabled by a digital first network. First, we innovated at the shipment level, removing friction from the process and creating the first guaranteed upfront price in this industry. Looking at hundreds of different parameters in real time, we offer carriers a transparent price they can trust and shippers the peace of mind they can clear the freight they need for a price they know in advance. Then we innovated at a driver level. With the Uber Freight app, we personalized all the opportunities for those carriers to match their preference. We can optimize their schedule and allow them to spend more time back home with their families. And lastly, we've optimized the network itself. Using sophisticated artificial intelligence, we offer carriers bundles composed of multiple shipments -- so carrier can book a load, let's say, coming from Chicago to Florida at the same time, he's booking that load back from Florida going home. And they can handle both of those loads for a reduced price and allow them to reduce their empty miles, making more money while driving. And doing that all at real time across $1 billion of potential combination, we estimate those bundled loads are reducing more than a quarter of those empty miles for our carrier community. There are hundreds of these types of innovation that our data scientists and engineers are driving on top of the digital first network. And that is what allowed us to continuously push the envelope and dramatically reduce our carrier cost year over year over year, making the booking process more efficient, finding the perfect match out of more than 1 million drivers and limiting all those empty miles. And today, we believe we are able to secure trucks at a lower cost than the vast majority of the industry, both in an inflationary market on the right, and a deflationary market on the left. Now the second flywheel is driving efficiency and automation in a digital first network. We believe we now have the lowest operational cost in the industry having automated many of the steps required to execute a typical load. From connecting directly with shipper systems to automate the load creation to pricing all of those shipments automatically with sophisticated algorithm, to book all of those shipments by our carrier in the app -- we are able to accomplish all of that and many other steps without a single human touch. Without all of those manual phone calls and faxes, and we eliminate the need for this large, manual, expensive and very hard to scale sales flow you'll see in the typical brokerage. Now having a fundamentally better OpEx structure also allows us to provide our shippers much more instant capacity and scale with them seamlessly as their needs grow. Our model also allows us to offer better service for our shippers. In this example, a carrier had to cancel a load on the way to a pickup. This happens all the time in logistics, 15% of daily shipments are actually canceled for weather, mechanical failure and a host of other reasons. But what will typically take days to recover from and hundreds of dollars of additional cost can now be fixed on the Uber Freight marketplace automatically for 80% of those failed bookings that are rebooked without a single human touch. In this example, the platform automatically reprice the load, automatically sends it to all the nearby carriers. And a carrier who actually was closer rebooked the load within 9 minutes and arrived even earlier to the pickup spot. Now this might be something like you expect out of an Uber, but in the world of logistics and freight, this is unheard of. And shippers are delighted by how much time and money we can save them. Speaking of shippers, taking together this cost efficiency and service benefits, we have been now a vital part of America's supply chain. We now serve more than 100 of the Fortune 500 shippers, 5 out of the top 5 bev companies, 9 out of the top 10 CPG companies. We move on our trucks more than 15% of all bottled water in the U.S. And for many of those shippers, we are now their biggest carrier, growing our business with them for over more than $100 million in less than 4 years -- for numerous of those shippers. Those companies and shippers come to Uber Freight because they want to access truck capacity at scale. They come to us because they want visibility on where their trucks are at. They want a reliable service they can trust when they need it most -- they want to reduce cost, innovative solutions rooted in our deep technology and operational excellence. Collectively, just these enterprise shippers represent more than $100 billion of freight opportunity. And we're just getting started with them. We continuously increased our engagement with them, being recognized for the service and value we bring them. As we grow with these customers, we become even more integrated with the supply chain and with their systems and they rely even more on our innovation. For example, Anheuser-Busch is now planning their daily factory production volume based on a real-time price of a truck in the market, something only Uber Freight can do at scale. And as we scale with those shippers, they are asking us not just to manage a portion of their freight but their entire supply chain. And to do that, last year, we've acquired Transplace, the leading managed transportation provider in North America. Managed transportation is essentially a shipper deciding to fully outsource their logistics to a third party. And Transplace is the clear leader in this growing category. Because if you're a shipper, you need to manage hundreds of different brokers and carriers, providers, do all of that with a large in-house team, deal with varying technology or the lack of technology by those providers. And even after all of that, you're not fully controlling your supply chain cost because you are optimizing to begin with on a subscale network. Compare that to the Transplace experience: it's magical. Transplace is the single point of contact across your logistics needs. They're managing all of your carrier relationship. Transplace software is integrated across the entire operation from ERP to warehouse management to customer service, audit, pay and more. And this makes Transplace a trusted strategic partner, resulting in over 95% customer retention. And trust is earned by Transplace's team of expertise, living and breathing logistics from top to bottom, executing more than 500 million transactions a year. No in-house team can compete with the pulse that they have on the market. And with the visibility Transplace have to over 1,000 shippers network, they can provide unprecedented optimization, resulting in over more than $400 million saved just last year for their shippers. So now we combine Uber Freight, the #1 digital broker, with Transplace, the #1 managed transportation provider, creating the largest logistics cloud ever built with $17 billion under management. This allows us to solve shipper logistics problems end-to-end across all of North America and across all modes, from truckload to partial truckload, to custom into Mexico, to rail, to parcels, and even last mile, we can be their strategic partner and help them with the more strategic aspects from the most strategic aspect of demand planning to the individual truck drivers moving that load. Now the 2 businesses are actually very complementary to each other, accelerating each other. Imagine doing all the innovation we spoke about, not just on $1.5 billion of freight, but on $15 billion of freight moving the Uber Freight flywheel so much faster. And then on the other hand, unleashing that engine at a much bigger scale, enables Transplace to create even more value for its shippers, making it even more appealing for them to join the platform. Now we truly have a combined platform and logistics cloud that makes every participant in it whether it's a carrier or a shipper more productive, more cost efficient and more predictable. Back to the pain point we started to do this with, this is the best way to make structural progress on the supply chain challenges we face and improve the overall logistics market. Speaking of change and improvement, I wanted to end by sharing a bit more about the future. We believe autonomous trucks will fundamentally improve safety and reduce costs by injecting much needed capacity into this market. And we believe Uber Freight is going to play a critical role in this future. Like autonomous cars, autonomous trucks will start with the most predictable routes, in this case, long stretches of highway leaving the more complicated last and first mile to human drivers. So put yourself in the shoes of a self-driving technology developer and think about everything that you need once you actually develop the technology in order to actually commercialize that in scale. You need drivers available at scale to carry the first and last mile of your route. You need someone who can manage all of those transfer hubs with fully loaded trailers on both ends of that leg. You need the fallback when the technology can't be activated due to weather or traffic or any other reason. You need a lot of shipper demand to fill your empty and very expensive trucks. You need a channel to interface with shippers and integrate autonomous solutions into their supply chain, combine routes between those different shippers. In short, you need Uber Freight. And we are the ideal partner for the self-driving ecosystem. And the future is already here. Late last year, we've announced our first pilot with Aurora, which is moving loads on self-driving trucks as we speak in Texas, between Dallas and Houston, every day. Now it is more important than ever to invest in the future of the logistics industry. We are inspired and motivated by our mission to simplify the movement of goods to help communities thrive. And we believe we have an important role to play in advancing this critical industry forward. Thank you very much.

We will now break and look forward to seeing you back here in 15 minutes for Uber's Investor Day 2020. [Break]

Please take your seats. Uber Investor Day 2022 will recommence soon. Thank you. We now welcome to the stage Sundeep Jain, Chief Product Officer.

Hello, everyone. My name is Sundeep Jain, I'm responsible for products at Uber. I joined Uber after a number of years at Google where I worked in search advertising, which is a marketplace connecting users with advertisers. And Google's marketplace is very complex. After having been here for over 3 years at Uber under the hood, I can, with high confidence, tell you that Uber's marketplace is unbelievably sophisticated, because in addition to dynamic demand that's changing in real time, we also have dynamic supply that's changing in real time constantly. Every minute, our algorithms are pricing, matching, routing, thousands of trips and deliveries in thousands of cities across the world, we have to balance multiple sides of the marketplace in real time and in the real world. And prediction can be a challenge. What if there's bad traffic, what if it's raining, what if a restaurant is closed? Multiply that across 10,000 cities and the breadth, complexity and scale of our technology becomes quite impressive. So far today, you have heard from each of our vertical product lines, you heard from Mobility, you heard from Delivery, and you heard from Freight. I am here to tell you why Uber as a whole is greater than sum of the parts. Uber as a whole is greater than sum of the parts. And to show you how that tech -- underlying technology platform creates a sustainable advantage versus a single product line, I'll start by talking about earners, and I'll show you how we have higher lifetime value and lower customer acquisition costs. I've chosen to talk about earners first because often we realize the benefits of a platform on the consumer side but it's really the earner side that is equally advantageous for us. Then I'll talk about consumers and also show you how we have higher lifetime value and lower customer acquisition cost than a single product line. And lastly, I'll talk about our shared technology across the entire platform, which gives us a cost advantage on tech costs and enables us to launch products faster to market, and I'll share that as well. Let's start with earners and how the platform creates a sustainable advantage. Now my job is to make it easier for earners. I want to make their onboarding easier, I want to make them -- it attractive for them to stay. I want to make sure that they have the highest earnings they could have relative to any other service such that they stay with us longer. And we do all of this because what's good for earners is good for Uber. So let's start chronologically through their journey. The first step for an earner is to onboard onto a platform so they can start earning. Now if you're a single product line, you tend to push them into a vertical workflow where you either onboard for Mobility or you either onboard for Delivery. And we used to do the exact same thing, where you'd send them in one specific flow. Imagine if we could create a shared workflow where they sign up just once, one log in, go to the process once and they're able to both move people and deliver goods. We move -- we shifted from vertical flows to a shared workflow last year to test how much easier it would be for earners where they sign up just once and they can do both Rides and Eats. What we uncovered by doing that process is that we compressed the cycle time as sometimes we would approve them for just one because the background check processes can be different across both. But often, we would enable them -- approve them to do deliveries and Rides all at the same time so they can get on the platform faster. Signing up once for driving and delivering enables them to earn faster, which is one of their primary goals. Now after we moved to a shared workflow, we noticed that each of the earners was giving us more supply hours per earner. The black line represents -- the black bar represents cross-platform users; whereas the green is Delivery only and the blue is Mobility only. And take the graph on the right-hand side: Earners that onboarded using a shared workflow did 40% more first trips than those that just did a vertical-specific workflow. That's a pretty big number, right? The shared workflow enable -- gives them more trips on the Uber platform. Now after they're onboarded, we create a single app for their workflow, and that single app gives them more choices. Take the picture on the left-hand side, which is a heat map that shows some opportunities for Rides and Eats, shows them opportunities to earn with the pop-up at the bottom. So they have more choices, more flexibility. They can navigate their day. And in the future, we're going to create a job board which shows multiple dispatches so they can pick exactly which job they want to do. Now flexibility is a core reason earners join platforms within the gig economy, and we provide them a lot of flexibility. Now it's not surprising that, that flexibility is important because the peak periods for Mobility and the peak periods for Delivery are different, right? Mobility is going to be busier during commute hours and weekend nights, and Delivery is going to be better during meal times. So this is a time line chart where the blue represents a dominant transaction volume for Mobility, and the green represents a dominant transaction volume for Delivery, and they're different throughout the day. And so if you're just doing 1 type of a job, you're going to miss out on the peak periods, right? And the benefits are there. So when you drive or deliver across the platform, sometimes Rides, sometimes Eats, you actually make more money. The earnings per hour are higher. So I've shown 3 different time periods where the black line -- black bar represents cross-platform earners and the blue represents mobility-only. Mobility only tends to be higher than delivery-only. And you noticed that we have higher earnings power. Now this is an example specific city, and it's not pervasive everywhere, but there's an opportunity for us to make this pervasive everywhere. Just imagine that you're able to onboard faster and work across both platforms. We give you more choices and you actually have higher earnings. And when you have higher earnings, you end up staying on the platform longer. You retain longer. And if you retain longer, you have higher lifetime value. And so this is a 28-day earner retention and the black bar represents the cross-platform earners. And there's 17 percentage points higher retention than Delivery-only and 3 percentage points higher retention than Mobility-only. And that's a 28-day or 1-month retention. That compounds to pretty big numbers over the course of a year. Now from an Uber standpoint, we -- because earners work across the platform and they're earning on both of our platforms and they end up having higher retention we -- if we go to the next slide -- we have the benefit of lower customer acquisition costs, right? With different peak periods, we have opportunities to cross-sell them across the platform. So you see the pop-ups at the bottom will show you when it's better to do a Delivery and when it's better to do a ride. And that type of guidance can help them navigate their day. And that effectively lowers our customer acquisition cost by 15%. 15% is a large difference in customer acquisition costs that creates fundamental economic advantage for a platform that has multiple services versus just a single line of service. The best part is that only 23% of our earners today are on both Rides and Eats, right? This number has grown substantially over 2021. But as we started to roll out shared workflows, only 23% on both Rides and Eats, which creates immense future growth upside as we grow the proportion of earners that are on both platforms. And we have high confidence that we'll be able to grow this given that we're delivering higher earnings per hour, which makes them want to stay longer with Uber. So just as a quick recap, the shared onboarding workflow gets them to earn faster, makes it easier for them to earn on both platforms. Then we have a single app where we have shared information that enables them to have higher earnings, which leads to higher retention and higher lifetime value. And because the peak periods are different, this makes intuitive sense, and we're able to cross-promote across the platform such that we have a lower customer acquisition cost. And all of those together create an economic advantage on the earner side. Now let's shift gears and talk about consumers. So consumers over the last 2 years during the pandemic, we have been busy building a large set of services to go anywhere and get anything. We have done this through 2 interconnected apps. There's a Rides app and there's an Eats app, one for go anywhere, one for get anything. But across those 2 apps, we have lots of cross-promotion surfaces. Here's an example where in the Rides app we're promoting grocery, and then in the Eats app, we're promoting the Rides. And those cross-promotion surfaces are very important. If we look at all of the externally paid channels, this is Google, Facebook, TikTok, Instagram, wherever you might place an ad for externally paid channels, we acquired twice as many users than all of those channels combined, right? So Delivery acquired twice as many consumers in all of those channels combined, we are able to source consumers from our internal platform. And that twice as many consumers that we acquired, we did that at 1/4 of the cost, 25% of the cost -- acquiring twice as many users at 1/4 of the cost. That's an economic advantage. In addition to acquiring consumers, we create consistent identity, consistent payments, consistent business and user profiles and single set of preferences that personalize your experience in the app, right? You can designate a home residence, which we can use both in Rides and Eats; you can designate a third party, such as your mom, where you can take a ride or order a meal for them. All of this is consistent and seamless across the 2 apps. That -- the shared data enables us to create magical moments right? An example that I experienced myself is you land in an airport, and we can enable ordering a meal such that it arrives by the time you get home. It's a magical moment, right? And you just need a few of those magical moments for the consumers to really appreciate your platform. And we can only enable that because we have shared data across the 2 apps. We -- all of the various services that we offer enable us to predict what might be the right service for you. Now in addition to these magical moments, if we go to the next slide, consumers start spending more, like those magical moments make our platform more valuable. So if you look at the spend per consumer on a quarterly basis in Mobility, which is a blue bar; Delivery, which is a green bar; and the cross-platform, which is the black bar. So the cross-platform users are spending 6x for more -- and the cross -- than Mobility. And the cross-platform users are spending twice as much as Delivery. So we have higher engagement. In addition to higher engagement, we have higher retention. So once again, the black line represents cross-platform users, the blue line represents Mobility and the green line represents Delivery. And you can see by the numbers at the end that the cross-platform users have about 20%, 25% higher retention than either Mobility or Delivery, right? So we've got lower customer acquisition costs. They're starting to spend more because we have these magical moments and then stay on our platform longer. And the proportion of users that are cross platform is growing. So the top line, and Dara mentioned this, 46% of our users, GB weighted, gross bookings weighted, are cross-platform. Which only -- if you look at the bottom line, which only corresponds to 17% of our users. That's great that it's only 17% of our users because given the cross-promotion surfaces that we have, given how large, equally sized the 2 businesses have become, that number has a lot of future upside. And remember, as we grow the proportion of users that are cross-platform, we get the benefit of higher spend per user, higher retention and higher LTV. All of that is future upside for us. Beyond all the things I talked about, which is just through our surfaces, we're also bringing forth the Uber One membership, which is something else on top and the membership program that combines benefits across Rides and Delivery is better than just a single line. We can offer preferred drivers on the ride side, $0 Delivery fee on the Eats side. And we can deliver all of that membership program at the same price as a competitor would deliver for one product line. So the shared benefits across those make it a better membership program. And members are more valuable to Uber. They spend 2.7x versus nonmembers, as shown by this slide, and they also retain 20% more than nonmembers. So we already have the benefits of customer acquisition costs, engagement and retention, and then we bring membership on top to increase that even further. So we have interconnected apps where we can cross-promote, create higher engagement. And then we have higher spend, and we're expanding our programs, membership programs across geographies, and across areas to increase the proportion of users that are members. Okay. With that for consumers, I'm going to talk about technology costs and time to market. We have significant shared tech operating at scale across our platform, right, whether it's identity, dispatching, infrastructure, ordering, all of that functionality is shared. In fact, 75% of our engineering resources work on shared components across our platform. And all of that is available out of the box. And so when we launch new lines of business, and you heard a lot about new lines of businesses across both Mobility and the Delivery verticals, we're going to be able to take those to market faster. We've already seen some evidence of that. If you look on the next slide, the blue line represents Mobility; green represents Eats; and orange represents grocery. We're scaling products faster to market. Now some of that is the market dynamics, but a lot of it is that we're able to bring those products to market faster. Let me give you one other example of where shared data creates competitive advantage. We use the shared data to make each service better. So on the left-hand side, we use Delivery data for apartment complexes. Remember, we need to deliver food to a specific apartment unit versus a leasing office, which tends to be the address for that apartment complex -- on sprawling ones, not the high rises. But we're able to use that data to make Rides pickups better. Similarly, we have all of this prediction data from Rides, and we're able to use that to better estimate ETAs for Delivery -- ETAs, or estimated time of arrival. And so we're using this shared data to make each service better; they're feeding off each other. Let me give you another example, one of my favorite examples. So the top of the slide represents matching graph optimizations. And remember, matching graph optimization is just increasing the number of connections between riders and drivers or eaters and couriers. And the more connections we have, the higher throughput we can get. So for a given amount of supply, given an amount of demand, if we can create more connections and density, we get higher throughput. And over the last 10 years, we've been improving that by each year iterating year-by-year through machine learning. And over 10 years, and maybe you would expect this after 10 years of machine learning, we've got a 1,000x improvement on our matching graph optimization, right? So that's great for Mobility. But because we use shared tech, Delivery gets the benefit of that in the earlier phases. They don't have to wait 10 years to build those improvements themselves. They get the benefit in the earlier stages. Take the example at the bottom, which is pricing algorithm optimizations. Remember, we're always trying to price a trip for the consumers, and for the earners, are trying to get as close to the market clearing price as possible, all in real time. So pricing is actually a very complicated and sophisticated algorithm and challenge. And over the last 10 years, we're getting better and better on the Mobility side. So over the last 10 years, we've got a 300% improvement in pricing efficiency, which drives higher throughput, and Delivery gets all of that benefit in the earlier phases. And so collectively, we had -- the shared tech enables us to lower our cost because so much of it is shared, 75% of engineering resources, and we can launch products to market faster and new product lines get the benefit of multiple years of learning. So to wrap up, what I've shared on the earner side is we do have higher engagement, higher lifetime value because we have all of the shared workflow and shared data. And that does lead to lower customer acquisition cost and higher lifetime value. On the consumer side, we have a lot of cross promoting surfaces, which enables us to create lower customer acquisition costs. And then because we're able to create magical moments for consumers, we have higher engagement and higher LTV. And then we bring membership together to put it all together. And on the shared tech side, we can ship products, new product lines faster to market. We reduced our tech costs and we build better product experiences, especially when new product lines get the benefit of all of the learning for multiple years. Now everything I've talked about today has been very focused on consumers, riders and eaters, earners, drivers and couriers and all of our shared tech. But we also have a pretty large opportunity on the enterprise side. We sell advertising to enterprises across both Rides and Eats. We have a business that we call Uber for Business which sells Rides for businesses and Eats for businesses to enterprises. And we'd like to tell you a little bit more about that. Let's start with advertising and then we'll go to Uber for Business. I'd like to invite my colleague, Mark, to talk about that.

Thank you, Sundeep. Hello, everyone. I'm Mark Grether, a General Manager of Uber Advertising. I joined Uber 6 months ago from Amazon advertising where I drove its product strategy for the demand-side business. Prior to Amazon, I was the CEO of Sizmek, the largest independent advertising platform; and the COO and Co-Founder of Xaxis, the largest programmatic media company in the world. Today, I'm very excited to talk about our nascent but high potential advertising business. Uber Advertising brings together location-based and shopping data with closed-loop attribution across our Mobility and Delivery channels for performance and branding campaigns. We enable our advertisers to engage with our consumers on the entire marketing funnel, from awareness to consideration to conversion to loyalty. Very, very exciting. Let me start by talking about our consumers first. We have a global premium go get audience of 118 million monthly consumers who engage with our platform. As part of our core business, they tell us where to go and what we want to get. With more than 1.8 billion trips in the fourth quarter, they get in touch with us about 5 times per month across our Rides and Eats services. And we know that without any personal information that we can -- that we share, we recognize a significant responsibility we have to be transparent with our users, safeguard their data and earn their trust. So let's have a closer look at how we can deliver on this opportunity. Imagine that Starbucks has introduced a new holiday-themed drink. To achieve awareness, Starbucks will utilize Uber's digital out-of-home platform to connect our riders and our eaters together. As Starbucks move further down the funnel, we will target riders on the way to the office with our Mobility in-app advertising. Then Starbucks will be able to target eaters at their time of purchase within Uber Eats sponsor listings program. For consumers looking to order their groceries, Starbucks can use sponsored listings to have their products added to a larger shopping basket together with other items such as lipstick, candles or dog food. As Starbucks drives loyalty, they can message our repeat eaters. We believe no other platform can reach consumers through such a targeted omnichannel marketing solution with transaction-based measurement at global scale. While we have an [ endemic, active set ] of more than 825,000 merchants, we believe this value proposition will appeal to many verticals beyond our existing partners, from connecting business travelers who frequently ride to the airport for travel companies, to people in the back of cars on a Friday evening for entertainment brands, to the extension of our Delivery business to get almost anything delivered for our retail advertisers. Now let me share the success we have had since starting our journey in 2021. We've built a technical foundation of our proprietary advertising platform by focusing on restaurants on Uber Eats, with the launch of our sponsored listings program in more than 20 -- 30 markets. Our solutions have helped over 170,000 advertisers to grow their business, and we were able to deliver a return of advertising spend of 11 in the fourth quarter. We also now would like to take a moment to talk about our Mobility program. During the second half of 2021, we ran a pilot program within our Rides platform for 5 partners, including Marriott. Custom content was presented across multiple phases of the ride, with 100% share of voice during the entire trip. Consumers were exposed to the ad content for approximately 2 minutes, which is significantly more than on any other platform. And that exposure resulted in 2 to 6x to brand performance lift. In addition, we launched Uber's digital out-of-home advertising network with more than 3,000 cartops in 7 U.S. markets delivering 100 million daily impressions. This solution increases for the most engaged drivers their incomes, like William here on this chart, by about 20%. So we're looking forward to expanding our Delivery and Mobility offerings in 2022. Today, I'm very excited to share that we exited 2021 with $141 million in revenues at a run rate of $225 million. As we continue to invest in new ad surfaces, format and features and build out a dedicated sales force, we expect this business to grow into a $1 billion-plus revenue opportunity by 2024. And with its high margin profile, Uber Advertising will serve as a key driver for Uber's profitability in the years to come. Let me close by sharing that we believe that the advertising flywheel will help to fuel the growth of our Marketplace businesses. With our large user base and third-party data, we can provide strong advertiser returns and deep insights for our advertisers, which will attract more of them. With more advertisers on our platform, we can grow our advertiser profits, which we will use to reinvest into the future growth of our core businesses, accelerating the flywheel program of our advertising business. I look forward to our future and the growth of Uber's advertising business. Thank you for your time today. And now to Susan, who will tell you more about Uber for Business.

Hi, everyone. I'm Susan Anderson, and I'm here to tell you a little bit more about Uber for Business. I joined Uber 5 years ago to launch Uber Eats in Australia. I've previously been at Amazon and launched Amazon Prime Now in the U.K. I then went on to run Mobility in APAC before taking over Uber for Business just under a year ago. So 8 years ago, businesses started realizing Uber was one of their most expensed items alongside Starbucks. And so they turned to us for an expense solution, and that's when we launched Uber for Business. Since then, as Uber has diversified, so has Uber for Business. I'm going to start by taking you through our suite of products before going on to talk about our -- some financials as well as our growth plans. So you'll all know us best for our travel products. Companies can offer their employees integrated expense management for ordering Rides or food on business travel. Uber automatically populates receipts, so no receipts, no hassle. For companies, we offer customizable reporting, soon to include CO2 emissions as well as tools to manage policy compliance. So why is that useful? Well, I'll give you an example. During the depth of the pandemic, we worked with a global fast food company that needed a solution to get their restaurant workers home when travel and transportation opportunities were really reduced. They came to us at Uber for Business, and we could set them up with restrictions on time of day when they could use a product as well as locations to and from, and that meant they could enable their employees to use the service and ensure everything was within policy. Alongside travel, we're building out our Eats business solution. Companies can set daily, weekly or monthly budgets for employee meal solutions. We offer bill splitting, group ordering and premium customer service. Importantly, whereas many legacy office food providers can only handle the meals in office, Uber can also deliver to employees' homes, which is a huge advantage as many companies are moving to hybrid ways of working. As the war for talent continues, we are seeing large companies investing in enhanced benefits, including meals. We recently won a competitive tender with one of the world's largest tech organizations for their annual meal program. This will be worth over 45 million annually, and we won on the strength of our product a global reach as well as the fact we can meet both in office and at home. And that's not a one-off. We're seeing a lot of companies looking into this space to enhance their benefits, both in the U.S. and worldwide. And then often, as is the case with that tech company, companies are buying Uber One for their employees as part of their benefits package. In late 2019, we launched vouchers and corporate gift cards for both our Uber Rides and Eats products. This provides technology to enable companies to buy and distribute these products on bulk. So for people here in person today, you received vouchers, and I know a number of them have used them to come today and to go home. So you've experienced that personally. So alongside the employee and client use case, since launch, we've also secured multimillion dollar deals with marketing agencies to provide Uber gift cards as a key part of their campaign. You can see this in the live campaign that's running up to and during the Super Bowl using Uber Eats gift cards. The potential here is huge and is a really strong complement to the ads business. Our Uber Central product is a web-based dashboard that allows companies to directly dispatch cards to their clients or VIPs who don't even need to have the Uber app downloaded. With this technology, anyone can be a dispatcher for Rides or Eats. It's frequently used by assistants in organizations for their executives or for their teams. But we're also seeing it being used within logistics. For instance, we have a roadside recovery organization in France who is utilizing Uber Central to go and get customers when they find themselves stranded. Finally, for health providers, we also have a HIPAA compliant offering, providing nonemergency medical transportation that allows care teams to request Rides to their medical appointments on behalf of their patients or to have prescriptions, food or medical equipment delivered. This is a rapidly growing part of the health industry. And again, our ability to address both Mobility and the Delivery is proving to be a key differentiator in this space. Health care providers are thinking about this holistically and we're the partner that can offer that. So we're now seeing more of our clients using multiple Uber products. So let's take Meta. They use Uber for business globally for transportation as well as meals while traveling as well as using our commute product to supplement their on-campus shuttle services and to transport staff home in emergencies. Similarly, Salesforce, they leverage Uber for Business for both travel and meals, whilst also using our voucher product for client events. We currently have contracts with over 170,000 organizations worldwide. We call this our managed business. And this includes over 60% of the Fortune 500. We did a recent survey with our enterprises, which gave us an NPS of 68, which is substantially higher than industry average and our global coverage as well as our platform portfolio is a key differentiator. We operate dedicated sales teams in our largest Uber markets, but also self-serve available in every market where Uber operates. And this is a large global market. We estimate that we're targeting markets in excess of $600 billion, of which a large portion, we think over 50% will only be accessed by us having that direct relationship with the client. And we're unlocking platform value. Uber for Business is a strong acquisition channel for new users to consumer Uber. 6% of users through Uber for Business' travel product are completely new to Uber. And a further 35% of users have been reactivated post an Uber for Business launch after more than 6 months dormant in their consumer accounts. And then on virtual gift cards, that acquisition is even higher. 14% of users are completely new to Uber. So I'm sorry, Sundeep, but our CAC is much better. We get paid to acquire our customers. And these customers are some of our most valuable. At Uber for Business, a consumer is highly lucrative with over 4.4x the variable contribution of a personal consumer in Mobility. The diversification of our portfolio has had a meaningful impact on our revenue mix. In 2018, only 2% of our GBs were from nonmobility products at Uber for Business. Today, that's at over 26%. And when we look at the new contracts we're signing, that's up 36% as we increase our portfolio sell-in. We have a proven track record of growth. Despite the reduction in global business travel, in 2021, we exceeded our 2019 GBs, delivering in excess of $1 billion. We're confident we can accelerate growth. Our goal is to achieve an annual run rate of well over $5 billion in 2024 from our contracted clients. This represents 5x growth in health -- overall, and even faster growth in our health and our delivery sections. And so to achieve this, we're investing in sales teams. We're increasing our team by over 60% and will 4x the amount of new business we're bringing in every year. And then we'll focus on growing our large existing cohorts of clients. We need to increase the number of clients using more than 1 product in our portfolio. Currently, only 10% of clients are using more than one. So we have a lot of runway. And then we're going to deepen end-employee usage through differentiated benefits such as our exclusive Marriott Points deal as well as Uber One. I know a number of your companies are Uber for Business clients. Thank you for that. But if not, please talk to me at the end, and I'll happily sign you up. So thank you very much for your time. And again, I hand over to Jill.

Hello, everyone. I'm Jill Hazelbaker, and I lead our communications, marketing and public policy teams. As you might expect for someone in my line of work, I'm often asked about our regulatory hotspots. What doesn't get as much attention is all of the work that we're doing to partner and ally with cities around the globe. In our time together today, I'm going to walk you through a few of our key areas of focus as well as how it translates to and impacts the work that we're doing from a public policy perspective. When I came to Uber 6.5 years ago, politicians often had genuine and I'll admit not unfounded questions for me about whether Uber could be a partner to them on the issues that they care most about: economic opportunity, work opportunities for people living in their communities; safety, whether we could help them make their streets and their neighborhoods safer; and of course, sustainability. What we have learned over time is that by partnering closely with cities, to help them solve their problems, we can make a lot of progress. We can also open the door to collaboration on some of our toughest policy challenges. Turning first to economic opportunity. One of the most important outcomes of the pandemic has been this incredible shift toward flexible work. Of course, at Uber, we've always understood the value of flexibility. Millions of people have used our technology to find an earnings opportunity since our inception. And today, Uber is the largest source of work in the world. Not the largest source of gig economy work or on-demand work, the largest source of work in the world, period. Between 2016 and 2021, more than 30 million people earned over $175 billion on our platform. That tells you just how much people value the type of flexible, low barrier to earnings opportunities that we provide. Contrary to popular belief, this is not a full-time gig. 90% of our earners work fewer than 40 hours per week. 60% of our earners work fewer than 20 hours per week. And inside of Uber, we are enormously proud that more than -- that our -- that people are trying to put their first foot on an economic ladder are coming to Uber. In London, 82% of our earners are immigrants. And here in New York City, that number is closer to 90%. During COVID, on-demand work became a lifeline for many. According to a recent report by Accenture, more than 64% of people who were new to platform work came because they either suffered a job loss or a reduction in hours. 78% of people said that platform work was an essential form of income during the pandemic. But we also know that the status quo isn't good enough. Being independent shouldn't mean that you're entirely on your own. That's why our policy teams all around the world are fighting for a better future for our earners. They're working toward a future that marries the flexibility and independence we know earners love with the benefits and protections that they deserve. And we're making a lot of progress. We're making a lot of progress because there are a number of different ways for us to approach this problem. We can strike deals directly with labor like we did in the U.K. and more recently in Canada. We can work with labor and other stakeholders to pass legislation like we did in Chile a few weeks ago, and we can win at the ballot like we did in California by an 18-point margin and like we'll do later this year in Massachusetts, where I expect a similarly successful result. It's going to take some time for this issue to shake out, but I fundamentally believe that we're on the right side of history. We're on the right side of history because we are aligned with what earners actually want. In survey after survey, they tell us that they value the type of flexibility and independence that our platform provides. In fact, in 6.5 years here, I have never seen a survey where they didn't say that unequivocally. Before I turn to safety, I'm going to play a short clip from one of our drivers here in New York, Everjoy, who's going to talk about what driving for Uber means for her. [Presentation]

Brings a smile to your face. Turning next to safety. Very early on in Dara's tenure, we made safety our top priority. And since then, we've made enormous investments in our products and our technology. Slide beyond. Slide back. Many of our earliest innovations, whether it's background checks, Share My Trip or GPS tracking have now become the industry standard. Our RideCheck technology can sense whether you might have been in an accident or you've deviated from your planned trip so that we can check in with riders in real time to make sure that you're okay. We're testing audio recording in many countries, and we've recently rolled out an audible reminder to buckle up when you get in the car. But it isn't enough for us to make Uber safer, we want to move the entire industry in a safer direction. That's why we were the first rideshare company to publish a comprehensive report detailing exactly what's happening on our platform with the next one coming this spring. We did it because we fundamentally believe that you can't improve what you're unwilling to measure. We were also the first in our industry to enforce arbitration for victims of sexual assault and sexual harassment. And here in the U.S., we're partnering with Lyft to share information about drivers who might have been deactivated so that we can keep bad actors off both of our platforms. Of course, central to our policy argument is this idea that Uber makes cities and their communities safer. And that's absolutely the case when it comes to drinking and driving. 80% of our riders tell us that Uber has helped them avoid drinking and driving. One often cited study by the University of Texas Med Center in Houston, found that when Uber came to town, DUIs decreased across the board with the greatest reductions happening on weekend hours when, not surprisingly, Uber is busiest. Of course, the pandemic totally changed what safety means to Uber and our communities. That's why very early on, we rolled out a global mask mandate as well as mask verification technology to ensure that riders and drivers were save while traveling in our cars. And to ensure that transportation is never a barrier to getting a vaccine, we put our hand up and partnered with The White House to offer Americans free rides to their first shops. Finally, on sustainability. This has long been a priority area for cities in a place where Uber can have an obvious positive impact. That's why we committed to getting our Mobility business to zero emissions by 2030 in the U.S. and Europe and by 2040 everywhere else. We're making good progress. We've rolled out UberGREEN to more than 1,500 cities and we've expanded the number of electric vehicles on our platform over the last 18 months. We've also committed almost $800 million to transition hundreds of thousands of drivers into electric vehicles via partnerships like the one making Teslas available for rent on Hertz. You'll notice a common thread to the topics that I've talked about today, transparency, innovation, accountability. We -- whether it's been economic opportunity or safety or sustainability, we've been transparent with the public about the arguments we're making and where we see the direction of travel going. We've led the way with product, technology and innovation. And we hold our leaders accountable, myself included, for delivering on these objectives. Some companies talk about this as ESG or CSR. At Uber, this is a core part of what we do every day. It's how we run our business. In closing, you heard Dara open the morning talking about how Uber as a company is emerging from the pandemic stronger than ever. And the same is true from a policy and regulatory position. You can see what I mean behind me. In the past 2 years, we've either built or rebuilt relationships across the political spectrum because we showed up for communities when they needed us most. And while regulatory interest is always going to be a fact of life for a business like ours, I'm absolutely confident that by working together, we'll build a better future for our riders, for our drivers and for the cities we serve. Thank you very much for your time today. And with that, I will hand it over to Nelson.

Thank you, Jill. So as Dara started out, it is great to see everybody in person. A lot of familiar faces. For those who don't know me, my name is Nelson Chai. I've been at Uber for 3.5 years. On behalf of the management team, I do want to thank you for joining us today to learn more about our business, our products, our technology and our long-term vision. I hope you enjoyed the opportunity to meet some of our key leaders. So I'm going to close today with a discussion of Uber's potential for compound growth at very attractive levels while expanding profitability; and to touch upon our capital allocation framework as we start generating positive cash flow in the near future. When we last hosted investor meetings before our IPO, the company had just closed 2018 with around 90 million monthly active platform consumers and $50 billion in gross bookings, mostly from our Mobility business. The business was generating deep losses, and we expected the losses to continue to extend further into 2019 before we started to pivot towards profitability. As a business that is predicated on movement, the impact that the pandemic had on our then core business was dramatic. If you think about it in April of 2020, our core Rides business was down 80%. I'm very, very proud of how our team came together and executed against an incredibly challenging backdrop. We acted decisively to refocus the company towards core opportunities. We divested several portions of our businesses and cut costs in the early days of the pandemic, all while being focused on product development to serve our core opportunities. We also acquired strategic assets opportunistically to accelerate our road map. And on our balance sheet, we maintained ample liquidity. We lowered our borrowing costs. We pushed out maturities, and we started monetizing some of our stakes in DiDi and Yandex in 2021. Our execution through the past few years has turned the crisis into an opportunity and we are emerging stronger than ever before. Based on sell-side estimates, we can see that the slope of the expected curve for Uber has become steeper post pandemic. Over that same period, we've dramatically improved quarterly adjusted EBITDA by nearly $700 million since the pandemic began. And importantly, we achieved our commitment to deliver EBITDA positive in the back half of last year. We've driven operating leverage across every line of our P&L, including variable cost items such as insurance and payments. And of course, we meaningfully reduced our expenses and fixed costs with a focus on addressing the core opportunities ahead of us. We intend to continue expanding profitability from here, and I'll share more details later in the presentation. With that recap, let's turn to what's ahead. We're still very much in the early days of penetration across multitrillion-dollar TAMs across Mobility, Delivery and Freight. You heard a lot today from Mac, Pierre and Lior on these opportunities and on Uber's strategy within the categories. Let me spend a few minutes going over our position and the implications for Uber's mid- to long-term earnings potential. We are entering 2022 very well positioned across these businesses. As of Q4 '21, Mobility was operating at a $45 billion gross bookings run rate and generating a healthy EBITDA margin. Our Delivery business reached a $54 billion gross bookings run rate in the fourth quarter and delivered its first EBITDA-positive quarter. And Freight completed the Transplace acquisition, and we are now poised to generate adjusted EBITDA profitability in 2022. Looking at our competitive position across Mobility and Delivery, we believe we are the best positioned player in our categories. Our early and aggressive investments around the globe in conjunction with our portfolio discipline have resulted in Uber having a category-leading position across both Mobility and Delivery. In fact, for Mobility, Uber is the category creator around the world. We estimate that over 80% of our current gross bookings are generated in markets where we have over a great 65% category position. We know from experience that a disproportionate share of value accrues to the category leader in a marketplace business like this. For Delivery, we were a late entrant to the game. But despite that reality, we have created the largest food delivery business outside of China in just 5 years. And we have category-leading positions in 2/3 of our international markets and a second position virtually everywhere else. Turning to an important market. We are seeing very constructive trends across Mobility and Delivery in the United States, which generates over 40% of our gross bookings. In the first half of 2021, we made a decision to focus on our consumer experience and invest in driver growth, even at the cost of short-term profitability considerations. As a result, we've seen strong improvement in the top line performance and in profitability in the U.S. Mobility in the back half of last year. At the same time, our focus on fixing the fundamentals for our U.S. Delivery business has meant that we have gained category share while turning the business from deep investments to adjusted EBITDA breakeven in Q4. We have really great momentum in the U.S. heading into 2022. Importantly, our business is actually a platform that delivers an outcome that's bigger than the sum of those businesses, as Sundeep outlined earlier today. As a result of our platform synergies, we are able to acquire consumers as much as 75% cheaper than paid channels. As we deliver more services to our consumers, they tend to engage at rates that are multiples of single product users, and they retain at substantially higher rates as well. These levers are not available to our competitors around the world. So this is actually the secret sauce to Uber. This is why we were able to be a late entrant and build Uber Eats into the largest food delivery business outside of China. And this is why we believe we will build our next frontiers faster and more efficiently than our single product competitors. Putting it all together, we see significantly better spend retention from our cross-platform consumers. Looking at all consumers acquired from 2018 to 2020, we saw spending expand to healthy rates for all cohorts, but cross-platform consumers spent as much as 35% more than all consumers in year 2. Our platform adoption is steadily increasing, as you heard earlier. As of Q4, 34% of quarterly trips and 46% of quarterly gross bookings come from consumers who are actively engaged across Mobility and Delivery. But we're very much still in the early days as only 17% of our active consumers are engaging actively across both product lines. Our goal is to increase this meaningfully in the coming years. Finally, let me turn to our financial model and capital allocation philosophy. As you may recall, we've previously discussed the long-range models for both Mobility and Delivery. Given our global footprint and multiproduct marketplaces, accounting differences between geographies and segments can result in noisy revenue reporting as has been the case with our Delivery business over the past couple of years. So that's why we encourage investors to assess the margin potential of our businesses as a percentage of gross bookings instead of revenues as it simplifies and improves the analysis of each segment relative to the other. So while a lot has changed at Uber since the IPO, our progress has only reinforced our long-term targets for these segments. We continue to expect Mobility to generate over 10% of GBs and EBITDA margin and Delivery will likely be closer to 5%. In both segments, as you heard today, we are pursuing some higher potential lower-margin opportunities with advertising providing an offset against that. We expect to steadily demonstrate incremental margins that are at least at those levels in the next few years. We are confident that our long-term model is achievable as you -- we have already sufficient evidence across our more mature markers. As you can see on the slides here, across Mobility and Delivery, we have several large markets that already exceed these long-term targets. For our Delivery business, the picture continues to improve. And in 2022, we expect more markets to turn profitable. On an aggregate basis, in the Mobility and Delivery markets, we are at or above our long-term model. We are currently delivering around 13% and 6% EBITDA margins, respectively, with acquisition, retention and engagement spend at steady-state levels. This is not unique to these specific markets. As markets mature, Uber and our competitors rationalize spend to bring in new consumers and that turns the markets to healthy profitability. While some costs may vary across markets like insurance in the U.S., we are very confident that our portfolio of markets can blend to the long-term targets that we have delivered -- we have outlined. Finally, Freight's strong momentum entering 2022, both top and bottom line are worth calling out. As we commented on our fourth quarter call yesterday, we expect Freight to generate positive adjusted EBITDA for full year 2022. We're very excited about combining Freight's digital brokerage technology with Transplace's managed transportation platform. The 2 businesses are truly complementary and accelerate each other's growth. So I'll close by addressing our financial framework. My sense is you guys are kind of interested in this chart. So based on our current expectations, we expect to deliver accelerating top line growth for full year '21 to '24, with a compounding gross bookings growth rate between 22% and 25%. In other words, we expect to nearly double our gross bookings from '21. And in 2024, that will translate to around $165 billion to $175 billion of gross bookings. In addition, we expect revenues to outpace gross bookings growth. We expect Mobility and Delivery to show incremental margins that are at or around our long-term targets on a yearly basis, although quarterly trends may fluctuate. And as a result, we are confident that Uber can deliver $5 billion in adjusted EBITDA in 2024, which should translate to roughly 7% incremental margins from '21 to '24. Given our asset-light model, free cash flows tend to modestly lag our adjusted EBITDA. For context, over the past 3 years, free cash flows have roughly trailed adjusted EBITDA by around $1 billion after normalizing for one-off impacts from the James River insurance transactions. In 2022, we expect to generate meaningful EBITDA. As such, we expect to turn free cash flow positive by the end of this year. And by 2024, we expect strong free cash flow generation. So this brings us to a new chapter in Uber's history, and it'd be useful to close with a summary of our capital allocation framework. When I met with investors when Uber went public, we talked about instilling discipline to effectively allocate capital and to turn Uber to cash flow positive. Looking forward, we expect to remain disciplined and invest behind growth opportunities in markets and categories where we are well positioned to win. Our growth initiatives will be focused on deepening our engagement with and developing more cross-platform consumers. We do expect to utilize M&A to augment our organic efforts, although in the near term, we do not anticipate any major acquisitions. And we do expect to retain a strong balance sheet and will remain opportunistic when the right opportunities present themselves. So let me wrap with a quick summary of everything you heard today. We are confident that Uber can compound top line at very attractive rates in the medium to long term. We are committed to developing or delivering profitability and expanding our margins and expect to deliver $5 billion in adjusted EBITDA in 2024. And we will continue to be prudent capital allocators, funding the highest return initiatives and maximizing long-term free cash flows to shareholders. And as you heard from Jill, we will do so being good partners in our communities, focus on economic opportunity, safety and sustainability. Thanks again for your time today, and I'll turn it over to Dara for closing remarks.

All right. Thank you, Nelson. Before we go to Q&A, I did want to summarize again why we believe Uber is a great platform and as a result, a terrific investment. We talked about it before. We have leading positions in multiple massive total addressable markets. We're the undisputed leader in mobility across the globe, and you see with Mac, how we're building out very, very significant growth opportunities during the most difficult times of the pandemic that are now ready to scale out. Delivery is here to stay, and our Delivery business is now the largest Delivery business outside of China and is now profitable and we expect it to be profitable going forward with, again, multiple big opportunities, grocery direct advertising on top of it as well. And Freight is bringing digital innovation at the perfect time when our supply chains are disrupted and is now going to be expected to enter profitably going forward. Each of these stand-alone businesses are dynamite businesses on their own. But they're not on their own. They get to benefit from the power of Uber's platform. This is cross-selling consumers. This is earners coming to one app. This is Freight using the data infrastructure that we have already built. I hope you saw from Lior's presentation, there are a lot of parallels in terms of pricing, matching technology between Freight and our other businesses as well. All of this, as you saw from Nelson's presentation, translates into what we believe is huge value creation for shareholders. That's ultimately why we're here, 20% to 25% gross bookings CAGR; 7% incremental margins; resulting in a target of $5 billion in adjusted EBITDA by 2024, with significant free cash flow generation and a management team who has demonstrated very strong capital discipline. Now a little perspective. If you take our gross bookings run rate of about $100 billion, and you apply our incremental margins of about 7% to it. And we today are trading at about a 10% to 11% -- 10 to 11x adjusted EBITDA multiple. This is for the kind of compounding that we have, the kind of leading market positions and the multiple multi-trillion dollar TAMs available to us. The old big tech compounders that a lot of us, the steady added compounders that I think a lot of you are quite familiar with, some of them aren't so steady anymore, and they're compounding is slowing down a little bit. This is Uber's turn. Hope you'll join us on a ride. With that, thank you very much for joining us. We're going to take a 5-minute break, and then we're going to get the management team up here for Q&A. Thanks again. [Break]

All right. Great. All right. Great. We had a lot of presentations. We wanted to open it up for Q&A with the analysts. And I think just a few housekeeping notes before we start. We'll ask that you raise your hands and I'll call on you and Julia and Rebecca in the back will run a mic to you. Please wait for that before you ask your question. And we'll -- I'll request you to also limit yourselves to one question and a follow-up. And then for the virtual audience, we'll turn to them periodically as well. So we'll try and do that and be efficient about it. All right. We can go to Eric Sheridan, Goldman Sachs.

Maybe taking a step back, you talked a lot about the cross-selling opportunity. Can we better understand over the next 2 to 3 years, what's the ramp of the cross-selling opportunity that you have reflected in the numbers you talked about today as a driver of unit economics on the platform? And how should we be thinking about leaning into investments on that cross-selling over the next couple of years? What should we be watching for?

Yes, absolutely. You saw the graphs that Nelson put forward as far as a cross-sell, and Sundeep put forward on the cross-sell. It takes a while to build out the capabilities as it relates to cross-sell. There's a lot of experimentation that has to go through to make sure that you're not spoiling the core experience by trying to cross-sell to the earner or the rider or either the next experience. And we now have the musculature and the data structures where we are effectively able to cross-sell our audience through a number of different experiences. So I would expect the percentage graphs in terms of GBs from multiproduct users to continue to increase. Now at some point, that's going to peak out. And really, it's about the percentage of customers that are multiproduct customers, where we think we have an enormous amount of upside. But I'd expect the shape of the curve or the slope of the curve to remain positive. I can't predict whether it's going to change, whether it's going to inflect one way or the other. But I think that the opportunity set there is pretty significant. Sundeep, do you have anything to add?

Yes. The one thing I would add is that we often spend a lot of time talking about the cross-sell on the consumer side. And I think Dara addressed that as well. On the earner side, where we share that 23% of our earners are across platform, across Mobility and Delivery, that is much more of, at least in my opinion, a no-brainer for earners, right? They -- it's easier to onboard, you earn more money by using both platforms. And so I do see that curve continuing to grow as well. And while we can't predict an inflection point, just that we could see more and more earners as they come back to the platform, share across the 2 services.

So Eric, let me just jump in for a quick second. So the short answer is, as you know, and you heard from the presentations that we were largely Mobility business going into the pandemic. We're emerging with 2 very, very, very large businesses. And we're starting to see the early signal of that cross-selling opportunity as we continue to emerge from the pandemic and move forward. So again, we think there's a huge opportunity there. What's built into the financial model, it's not something we would end up talking about and you had the specific questions. We want to get folks thinking about is what our overall gross bookings are going to be, what our EBITDA margins are going to be across those gross bookings. I know at least even on quarterly analyst calls, we spend a lot of time with questions about take rate and all sorts of those things. So our goal is to manage across those metrics. And I know you're going to look at a lot of different outputs, which we'll share with you. But if you think about how we're running the business, and then what we will do is we'll allocate capital, and we may invest a little bit more depending on the quarter. The fourth quarter actually, we addressed it on the call, where we did invest in on some of our Mobility business as an example, just as markets are opening up. We -- could we have done more? Maybe, but we knew that we wanted to make sure we overachieved against our guidance, which we did. And so you should just expect over time that we're going to continue to manage against those 2 big metrics, and then we'll allocate accordingly below as we think about managing the discipline in our capital allocation. So it's a long answer to get back to there's -- a, we're not going to tell you what's in there for cross-sell; b, it's really, really early days; and c, you have to get to a point, we had these 2 huge businesses that could interact with the different consumers we have.

We'll go to Brian and then we'll try and go the other -- go to the other side.

I have a couple just around Rides and Mobility. So if we're sort of running some of the monkey math on the margins and the total bookings guide, you can sort of get to -- it looks like you're expecting Mobility to sort of CAGR in the low 20s from a bookings perspective, curious if that math is right or about right? And then if that is right, how do you sort of think about the drivers of Mobility between MAPCs and increased spend per MAPC? Maybe just talk to us about how your biggest strategy to get more new users in your oldest markets to really adopt the Mobility product at this point.

Mac, do you want to talk to that?

Sure. Happy to. So I think in terms of your question around compounding, I think that's sort of roughly right with what we've shared as far as GBs. In terms of spend per MAPC versus driver of the number of MAPCs, I spoke a bunch in the presentation about how we think about driving users to use multiple products. I think the biggest lever to do that, honestly, is by structurally bringing prices down. The point that our TAM exists, most of our TAM exists below where UberX today, I think, is an important one to understand. And that's why things like shared rides and higher capacity vehicles are so interesting because as the biggest network, I think we're best positioned to put people into shared vehicles, to batch with things like food, to batch with -- or maybe not food, but grocery and things that are nonperishable. So I think the network density and efficiency there really helps with shared rides, and that brings down structural costs, which means we can grow both the number of consumers, but also engagement per consumer. So I think about the multiple product strategy, I talked about, is key to driving engagement for MAPC. The other thing to understand, and you didn't ask it in your question, but it's probably worth calling out. This business is a supply-led business. And so the most important thing we can do to grow the number of consumers and improve the consumer experience is grow the number of earners on the platform. And so that's why I think our efforts on that front, the leadership you see us have versus competition in every single market we have as far as earner sentiment and retention really, really matters. If we can -- we're in the fortunate position, particularly in Mobility, of the consumer product market fit being so strong that if we can grow the earners side of our market, we will grow this business. And so that's critical, whether you're talking about an existing market like the U.S. where penetration levels while still relatively low, are higher than elsewhere in the world. But that's also critical when you hear me talk about places like Germany and Spain and South Korea. The things that matter in those markets is standing up an earner operating model that works. And once we do that, we can grow consumers and people love the product. So hopefully, those thoughts are helpful. And the final point I'll make is we didn't talk about it today, but it is part of our strategy. There's a lot we can do to push into different age demographics. So younger users, I think we're underpenetrated on relative to the opportunity. Many of these are people who are not getting their driver's license when they turn 16 like they used to, and then older users, right, making mobility easy, I think, is a really important thing for an aging population and Uber has got a huge role to play there. So I'll leave the question there. I could talk about much more, but hopefully, that gives you a sense.

And Brian, if you step out for a second, generally, if you were to look at pattern recognition, lower cost products and taxi are very strong new customer acquisition vehicles for us, but early vehicles. And then once we acquire those new customers, we try to upsell them with other forms of transportation, which it increases GB per MAPC, but it especially increases EBITDA per MAPC, the higher-margin product as well. So think of low margin as customer acquisition and then we will up-sell them more stuff, which is more about GB and EBITDA and the 2 move against each other. So for example, most recently, in Q4, we had huge MAPC growth and a lot of first time -- Nelson talked about it, a lot of first-time riders, active riders. They tend to use the product less. They haven't developed the retention metrics, the repeat metrics. So GB per MAPC kind of moves the other way. So we don't strictly look at both. I would say you want healthy balanced growth across audience because if you're milking your audience too much and not growing audience, that's a problem. And as we deepen usage of GB per MAPC and EBITDA per MAPC, we'll reinvest it to kind of find new audience out there. And that cycle tends to work. The new cycle, and frankly, it is relatively new that we're looking forward to, is the Uber Eats audience. Like the Uber Eats audience is now getting big. There are a bunch of markets in which Eats is huge; Japan, for example, where the Rides business isn't big. And right now, I'd say the Mobility business has been more of a giver, and it's time for Delivery to give back a little bit and these 2 have worked together for many, many years. So I'm sure that will work out.

Let's go to Justin in the back.

A lot of people in this room cover a lot of your competitors. So just wondering what you're seeing in markets like New York where you have some new local competition on the delivery side. And then what's embedded in your estimates, both Mobility and Delivery for market share over the 3-year period?

Pierre or Mac, do you want to talk the competition?

Yes. Of course, I'm happy to give you a bit of a sense for like competitive dynamics here in the U.S. and in New York specifically. Overall, I'd say Uber Eats has done a really good job at gaining category position in the past 6 months, 6 to 9 months in the U.S. as a whole. And that's really been driven by share gains in some of the key markets in New York, for instance, where we're #1 player, but also by the push we're making, deliberate push into suburban markets, where, as I think you know, we are still pretty far behind. Our conviction is that those share gains, even though we don't need them to feel like we have a healthy business that's growing and profitable, those share gains we think, are going to be sustained, and that's really our ambition over the next few months and years. Now there's been in New York, like in many urban centers around the world, the emergence of what I would call quick commerce players, pure players, the Gorillas and Gopuff and many others around the world. And our view on that, if that's also where your question is getting at, is this is an important part of the value prop, so we see that and we treat that seriously. It's definitely a need we want to fulfill. But frankly, at the same time, we have quite a lot of conviction that our partnership approach is the right one, both in terms of prudent capital allocation, but also speed to market. We see that this space is incredibly well capitalized. It reminds me in many ways what we have seen with micromobility many years back, where you'd have in every big city around the world, 10 different players with $1 billion-dollar valuation left and right. That's not to say it's not a great business in the end, but it's to say that there's probably going to be a lot of value destruction for many of the players there, and we are kind of focused on this partnership approach, at least in countries where we think there's a clear path. I talked about the Carrefour example in France. So that's kind of the situation overall in the U.S. specifically when it comes to competition in Delivery.

Mac?

Sure. I mean, you heard Nelson, I think the key slide from Nelson on competition around how the percentage of our gross bookings in Mobility in markets where we have more than 65% category position. So thinking about us being 2x or 2x plus the next biggest player, that's really important to understand how strong we feel like those positions are because the classic flywheel effects that have always existed in our business do still exist, which is that if you've got the larger network, that's a better consumer experience. It means you've got more availability of cars, higher reliability, lower ETAs in different pockets of the city. And ultimately, what that ends up in is lower prices for consumers because you just have a more efficient network. And on the driver side, those same marketplace dynamics exist. You have less time between trips, less time you've got to drive to get your trip, just more earnings opportunities and utilization on Uber. And that's not even taking into account the stuff we talked about cross-platform. So that classic consumer and earner flywheel means that those strong market-leading positions are sustainable. And so in terms of -- I think the question was around how do you embed this in your plans? I think we're pretty reasonable in terms of how we do our financial planning. We don't assume some massive amounts of competitive rationalization. I can tell you we used to do that years ago. We would think about, okay, the incentive environment will improve. But I think we're just pretty reasonable and assume like a continuation of what we've seen for the most part, which is probably the rational way to approach things. But we've proven we can make money and grow in an intensely competitive environment, which is what Mobility has been in the last 10 years. And so I expect that will continue.

And it's our expectation that we will grow faster than the category, and we'll have higher margins than the category average. And if you go back to what Sundeep talked about as far as customer acquisition, if I had to compete with a competitor who had 2x the Google, Facebook, Instagram, TikTok, et cetera, all of these channels that was proprietary to that competitor, 2x the volume at 1/4 of a cost, I'd really be worried. That competitor is Uber. So I do think that we can, regardless of the competitive environment, yes, if the environment gets hypercompetitive, we have to respond, and we do, but we have enough of a portfolio around the world. We have enough businesses that trade off with each other and in our Q1 guidance was pretty strong. And under the covers, Eats is stronger with Omicron and can like lend a little help to the Mobility business. That balance and that structural advantage, we believe, are going to translate into faster than category growth and higher margins than category. There will be short-term perturbations throughout.

All right. Let's take one from Deepak in the middle over here before we go to the virtual audience.

So I just wanted to ask about the owner side. How much growth from 4.4 million owners is incorporated into the 2024 outlook? Do you -- obviously, there is engagement increases, but do you also need to see owners compound at a consistent rate to achieve this? Any color you can share would be great.

So of course, we want a balanced marketplace. And so yes, you heard Mac's comments that it's supply side-driven. So yes, we have a lot of efforts across the company in terms of continuing to engage and activate earners. We've done a lot of work operationally to make sure that we can onboard them quicker, so they're earning faster. And again, I think -- think about the fourth quarter. I don't know if you guys heard on the call last night, but we have a lot of competitors globally that will do less than 20 million riders, right, every quarter in terms of monthly actives or quarterly actives. We added 20 million new riders in the fourth quarter of 2021, even during this pandemic time. So just think about the flywheel that Mac was talking about. And yes, it is -- we need to make sure that we add supply because it keeps the flywheel going.

We would expect that our supply position, if you think about doubling gross bookings roughly based on what Nelson talked about, we think we can increase efficiency on the supply front. And some of the new channels that Mac talked about, for example taxis, it's supply out there, vehicles that exist out there. And so it's -- we're just reaching into existing supply now.

I think one point I'd add, if I can. We talk about this, and you heard Jill talk about flexible work. People come in and out of driving on Uber, delivering for Uber pretty regularly. A big part of our improvements in supply in the U.S., for example, the last year have been around resurrecting drivers who left the platform, either during COVID or pre-COVID. And we -- the reality is we've been building the earner side of this business now for 10 years. If just 4% of drivers who aren't currently active on the platform came back to Uber. that would more than double our current monthly active drivers. So beyond just growing the category of earners, beyond cross-selling versus other gig economy workers, if we just resurrected 4% of drivers who have ever worked for Uber but currently aren't, that would double our monthly active drivers. So there's a lot we have to bring people in and out of the category.

All right. Let's go to the virtual audience, if we can.

Our next question is from Lloyd Walmsley at UBS.

Great. Hopefully, you can hear me. Thanks for hosting the event and taking the question. I guess, 2, if I can. First, Mac, you talked about driving some big potential unlocks in markets like Spain and Germany and Korea, and then on a format working with taxis. What are some of the things that need to happen in those markets or with those formats to unlock that growth? And then just secondly, Nelson, thanks for sharing the 2024 targets. I think you said, historically, you'd like to exceed your targets. What are some of the key drivers that could produce upside to the 2024 margin targets?

Thanks for asking for upside already, Lloyd. It's a little early. Lloyd, to be clear, I said we did in Q4. Mac, do you want to -- I think it's Mac and Jill because both of you work hand in hand and unlock in some of these markets, who wants to go first.

Do you want to kick off?

Sure. So the first thing I'd say, Lloyd, thanks for the question, is in all those markets you just listed, so Spain, Germany and Korea, we have workable models today. Now that wasn't true 3, 4 years ago, and I think, thanks to the work of Jill and other teams, we can now scale a business. And those markets, it's been about, as I said, getting to a driver side model, so a supply model that works. They're a little bit different. Spain is licenses and then partnership with fleets who employ drivers. Germany, a little looser on the licensing requirements, but still partnering with fleets who employ drivers. And then Korea is much more of an e-tail market where you're looking at actually more of a taxi product, where they've done some liberalization of how the pricing works. But the key thing to understand is we have business models today that work in all 3 of those markets. Of course, there are things we want to do to scale the number of licenses or make it more flexible for IOs in these markets to be able to work on our platform, these types of things. But we have the foundation laid for many years of growth.

Yes. I would just add to that. I think that's exactly right. I mean our North Star is always preserving the independent contractor model. But I think we've demonstrated over time that we can make the business work, and we can grow the business under a number of different regulatory regimes. And so if you look at those markets, the introduction of dynamic pricing in Germany obviously allowed for explosive growth; the ability to onboard fleets in Spain allowed for explosive growth. So in each market, we're looking at what is the unlock. And then we have a very deliberate, intentional strategy, whether it's through partnership or legislative activity to solve it so that Mac's business and Pierre's businesses can continue to grow.

So Lloyd, I'll touch on your model, but let me give you a quick snapshot of Korea just because I was involved in the joint venture. So Korea is the seventh largest taxi market in the world. There's about 350,000 taxi drivers in the marketplace. The demographic of the taxi driver in Korea is similar to what Lior is facing in terms of truck drivers in this country. So what ends up happening is while there's a significant demand, if you're out and about after 10:00, it's hard to get actually a cab because a lot of the folks are home because of the aging demographic. So they change -- we work closely, Jill's team work very closely from a policy standpoint, assessing where the marketplace was in terms of some of the rules, trying to get things like dynamic pricing. Some of the things that we all take for granted when you get into an Uber. And as we are seeing some light there, we figured that we was better to partner with a local partner, which is SK Telecom in terms of map -- they have mapping technology. Again, we brought a lot of what Uber brings. And so we're able to kind of combine the 2. So when you say, well, what is the big unlock? Well, the big unlock is we need to bring more supply in. So we need to get more folks coming in who want to work in the contractor plus model like we do. We need to give them with technology and tools because a lot of the older drivers actually have a hard time, they actually don't have smartphones. So we need to make sure that we can use the Uber tools to do it. And so we are working closely over there to continue to unlock that market. And we're very well positioned to move forward to unlock. And again, it will be a big opportunity for the company and for Uber going forward. In terms of the long-term model, and again, I think you just heard a lot about what the upsides could be, Lloyd. If you think about where we've come from, the opportunities and the big TAMs ahead. Lior's business, if you think about it, we're still early days. We're still integrating the businesses. If you -- as we've gotten to learn Transplace a lot more, what they really can help us with is as we think about pricing contract loads as we're trying to bring more shippers on, because they're in that business already, they can do it way better than we do. What we've gotten very good at during the past -- the current economic cycle is we're very, very good, and by the way, you've seen it in our margins, in terms of we've gotten way better, both on the cost side as Lior talked about it, but in terms of managing the marketplace both from a contract perspective, but in the spot markets. And so the combination of the technology and the efficiency that we've built, combined with their market position as a managed transportation provider, that should provide some upside at least from a freight side of the business. And you heard a lot about the opportunities on both on the big TAMs and kind of where we're going on the unlocks. So Lloyd, that would be the upside. But let's be clear, my commentary around -- about overachieving against our guidance was really in Q4 of 2021.

And I also do want to point out that the $5 billion target compared to gross bookings, it's about 3% of gross bookings in terms of EBITDA. The incrementality, the incremental margins of this business are 7% or higher. And we think it's a worthwhile target. Could there be upside? Absolutely. But let's work on that target for now.

Let's go to Ed.

Some interesting momentum in the advertising business, still early days. I wanted to understand kind of what's necessary to grow the business. And then as a follow-up, it seems like a lot of consumer-facing marketplaces can capture 300 basis points or north of that as a percent from advertising, is that an aspirational goal?

Mark, do you want to talk to that?

Sure.

Excuse me. Can you come with a -- oh, we got it. Great. Thank you.

Can you hear me? Okay. Thanks for the question, right? So regarding your first question, what do we need to do? There are 2 things. On the Delivery side, we see a tremendous amount of opportunities by growing into new ad formats new features and especially growing our grocery business opportunity. We see a huge opportunity there. On the Mobility side, as I shared, we see 3 main services that we would like to grow. The first one is the ability to serve ads in the in-app opportunity. Secondly, it will be the opportunity to engage with our riders when they are in the car itself, meaning a tablet opportunity. And then thirdly, we also have seen that car tops is a huge opportunity for our advertising business. In terms of now the growth potential, it is still early days, right? We just started the business last year. So we do believe that we are confident to hit the $1 billion revenue opportunity by 2024. I'm sure we will see a percentage of gross booking in some verticals like alcohol, which are larger than, let's say, the 1% to 2%. But again, it's early days, and so we are really excited about the opportunities.

Let me try and come back here. James, Mizuho.

Great. My question's more about regulations. Obviously, we see a lot of moving parts on the federal side and the state side as well. I think most recently, Mr. Weil was renominated in DOL and also some of the labor agencies are taking a more aggressive stance on gig labor. So just curious what you guys do there specifically kind of to smooth out the process. And also in New York, we have a new governor at the helm. We're not quite sure what her stand is on gig labor. And maybe help us understand that as well.

Sure. So I'll take New York first. We got pretty close, as many of you know, to a deal in New York last year. I think that, that gives me a lot of confidence that there's appetite to get something done in the future, and so we'll continue to pursue that. As you all know, election years are tough. And so I don't expect something to happen in the immediate term. But again, I feel really optimistic given where we were and how close we were last time that we can get something over the line that works for the business. In terms of what's going to happen in Washington, I think casual observers see that The White House and the administration have quite a lot of things on their plate other than the gig economy. We're obviously watching the nomination of Weil closely, and I think there's been some folks who have expressed concern about it. So we'll see where that goes. In terms of our overall relationship with the Department of Labor, there was a lot of concern a year ago about what Marty Walsh's appointment meant for Uber. And we just haven't seen that come to pass. In fact, quite the opposite. We built a very collaborative relationship with Secretary Walsh. Dara has met with him, had very productive conversations. And as of now, we don't see independent contractor classification on the agenda. So overall, fairly smooth sailing at the federal level.

And just on to the -- I'd also remind everyone that from a big picture perspective, our earners prefer flexibility by a 4:1 margin. And again, we are stepping forward with not only flexibility but also benefits and protections as well. So I think we are leaning in to this ecosystem as a leader. And you can have regulatory bumps along the way, et cetera. But long term, if you look at the regulatory framework globally as it relates to rideshare delivery and the regulatory framework as it relates to work, it's moving in the right direction, chiefly because it's what our earners want.

I think just one last point there. If you look back to 2013, the only place with any sort of regulation on the bulk rideshare regulations was the state of California. And so fast forward, and look at all the progress that we made around the world, where we're regulated. You saw Mac's slide, we're regulated in dozens of countries and literally thousands of cities. And so we've learned a lot about -- along the way about how to actually get this done in a way that allows the business to continue to grow.

Let's go here.

Jason Helfstein, Oppenheimer. So Dara, anything missing for you to become the super app outside of Asia?

Say that again. Anything missing to become that super app out of Asia?

Anything missing that capabilities that you think you need to have to become the super app.

I'm sure we'll come up with something, but we have a lot, right? When you talked about Mac and all the different forms of Mobility, and then the bet that we're making in terms of grocery, alcohol, other kinds of goods, the partnership with quick commerce. We are certainly with Careem testing out payments. So Careem is building another super-app environment in the Middle East as it relates with payments as well. So that's a good experimental area for us. But I feel like that footprint now and the cross-promotion services that we have are very, very significant. And our realization of the potential of the footprint and cross-promotion and membership is pretty low at this point. So there's a lot of growth ahead of us, and we're going to look to run what we have better. And you can see in terms of cross-promotion and membership the progress there versus looking to see what else we can do. But we're always looking at opportunity.

And Jason, the one thing we would add is that I think your question mostly referred to being a super app on the consumer side. We are a super app on the earner side with a single app that provides earnings opportunities across multiple lines of businesses.

Great. Let's go to Rob over there.

Rob Sanderson at Loop Capital. A question on the unit economics on groceries. Pierre described it as a loss-leading category -- or not a loss leading as a gateway category rather. Do you think of it as a loss leader Can it have reasonable margin profile on the logistics side alone? Or does it depend on the advertising? And how should we think about unit economics in other retail categories that groceries may open up and enable?

So first thing, just to be clear, I didn't intend to say grocery would be a loss leader. My point was more to say that it's an entry point into retail more broadly. And so like I've described, we've seen that as people start to use more verticals with Uber, it strengthens engagement across the overall platform. When it comes to the margin profile, well, I have a ton of confidence that grocery stand-alone can actually be a profitable business. We see that already with some markets at the Cornershop side of things, which is the company we've acquired in Latin America. So I have quite a lot of confidence there. Our goal really when it comes to grocery and new verticals is to, frankly, provide a new leg to the overall Uber platform that gets people anything they would like, whether large-item grocery baskets, like what Cornershop has been doing mostly for the past 7 years, to actually a much fewer number of baskets and more of the top-up use case, which we hear a lot about with the quick commerce players that are coming up. So that's how we see things. Overall, I've said that earlier, but I have a lot of conviction that this is actually a bigger opportunity, a larger opportunity than what we have with the restaurant food delivery. And the interesting piece, and I will probably conclude there, is that it is really something we should think about beyond the Uber Eats app. What we see is the world is moving to on-demand delivery of things. That means every single retailer out there, I think 65% of the retailers in the U.S. are telling us that over the next 2 years, they want to figure out how to offer quick delivery to their consumers. And this is really also how we can play a big role with our delivery as a service offering, which is growing fast and faster than the core.

And if I were to generalize, in developed markets, U.S., call it, Europe, the cost of labor and cost of time to put everything together relative to the basket size is higher. So in developed markets, you have to lean more into advertising in order for the business to be a super attractive business. In developing markets like Latin America, and we're seeing with Cornershop, the cost of labor as a percentage of basket is actually lower. So the core unit economics are more attractive and you have to lean a little bit less on advertising to make everything work. As it relates to other retail categories, we're certainly going to go into other retail categories through the marketplace. But I think the other retail categories, the bigger penetration potential that we see is actually the direct business where we essentially separate the fulfillment stack that we build for our own businesses, and we offer in depth fulfillment staff to the retailers. Actually, Freight is doing the same exact thing as well, right? They are allowing shippers to go reach down to a particular truck driver and grab that truck driver to have their own virtual fleet. We're essentially building a virtual network of delivery for any local retailer out there as well. That, we think is a huge opportunity and the unit economics as it relates to that direct business are already positive as well.

Let's try and wrap up with a couple of questions from the virtual audience.

Our next question is from Ross Sandler at Barclays.

Great presentation. Pierre showed a slide kind of early on that talked about where the margin improvement in the Delivery business kind of came from. There was fulfillment efficiencies and a few other items. Could you guys maybe talk about where you see the biggest opportunity in that margin today going to the 4.5%, 5% long-term target? And DoorDash likes to talk about how they have this kind of 10- to 15-point retention advantage in the space. It seems like you guys may have closed that gap pretty significantly. So could you just talk about retention, where you stand today and kind of what's embedded in that long-term goal?

Yes. Ross, I'll start and then Pierre, you can add. In terms of delivery margins, I wouldn't point to a particular kind of magic margin creator. We look at the entire P&L. We're very systematic. We look at cost of sales, which is obviously a big one, contact rate, for example, we look at sales and marketing and retention rates. And then I'd also say cost per transaction, how much does it cost to fulfill a transaction. And we have teams that are optimizing each of these items. For example, our contact rate can be improved very, very significantly versus where we are now. Same thing as far as our sales and marketing and retention spend. A higher percentage of our sales and marketing or new customers is now coming from internal than external categories. This is in a world where mobility has been largely closed down. And there's more optimization to be done. Membership is becoming a bigger part of our business as well. That should improve retention. And then as it relates to cost per transaction, as the network densifies, and as our algorithms and routing algorithms improve, and as we're able to increase batching, which is 1 courier carrying multiple items to multiple places, our cost per transaction is coming down as we speak. So there's no magic bullet here. There are teams specifically working on all of these different areas, and we think we have a long way to go. I'll add to that, the advertising business, which has the $1 billion target, but that is by no means a ceiling, right? The $1 billion as a percentage of total gross bookings is still modest. And we think even when we hit that number, we're going to have plenty of growth ahead of us. As far as the retention advantage, et cetera, I don't want to focus in on one competitor. I'd tell you that our first focus has been moving single-product customers to multiple-product customers. So the way that we look at retention isn't Mobility retention, Delivery retention, we certainly look at those metrics. But if you look at Uber retention. And if you look at Uber as an entity and the ability for Uber to pay for a customer on a corner and bring them into the ecosystem and retain that customer by offering them lots and lots of stuff, upselling them, et cetera, just from a structural standpoint, we're advantaged over single-product competitors. We're relatively early in the membership kind of journey. Some of our competitors have gone deeper into membership. That's because that's the only lever they have. They can't really cross-sell into mobility, et cetera, there's nothing to cross-sell. So they have to instantly go to membership. We've gone to cross-sell first, and then we're going to go deeper into membership that's going to create a greater advantage in terms of Uber retention than our single-product consumer. So I don't want to focus on one competitor. We like what we see, and you can see the trends. When shares improve and margins improve, and you're growing faster than the category, good things are happening, and we think good things are going to continue to happen.

Yes, very clear. Maybe the last point I'd add on the margin, first of all, another element is basket size, which also plays an important role in the P&L. We've seen that increase through a lot of our deliberate efforts, and this is an area we're continuing to innovate into to make sure, for instance, that as you order an order, you're able to kind of batch it with another order and things like that. So basket size matters. And then just on retention, I agree with all you said. The thing I'd add is outside the U.S., we typically have a retention advantage in the majority of the countries. And we see fundamentally beyond all the initiatives that stand us apart like you've said, that it's also a function of the underlying business, quality of the business, restaurant selection, reliability of the marketplace. And on that, we are making and we have made very substantial improvements in the U.S., which have also helped us gain those 10 points of retention in the country.

Let's take one last question, and we'll do it virtually.

Our next question is from Jake Fuller at BTIG.

I wanted to drill down just a little bit on the growth algorithm. One of the slides you had up covered the hailables going from, if I remember correctly, 400 million to several billion by 2024. How do the unit economics in that business work?

Mac?

Sure, happy to speak to it. So there are puts and takes. From a take rate perspective on hailables, we typically see it a little bit lower than a product like UberX, and there's a few reasons for that. One is we're competing with the street hail for drivers. And so that's a different dynamic than most of our for-hire vehicle drivers. But there is OpEx below that, that is actually better on the hailables products. So insurance and payments are 2 of our largest cost items on the Mobility P&L. And those tend to be better on our hailables products because drivers are bringing their own commercial insurance, because of the market mix and because within the hailables industry, payment norms are a bit different, and so you're able to do things like pass along the payments cost to the driver, these types of things. So there are puts and takes. We think it will grow EBITDA overall because it massively expands the category. And additionally, you get all the benefits of multiproduct users and those types of things.

Great. Let's wrap it up there.

All right. Thank you, everyone, for joining us. And I think we have a -- time to mingle.

Yes. For everyone in the room, we have lunch next outside this room, but we'll be around for any questions that you want to ask any of the speakers here.

Thank you for making it in person. Really appreciate it.

Thank you.

Thank you.