Good afternoon and welcome to LIFT's first quarter 2026 earnings call. As a reminder, this conference call is being recorded. On the call today, we have CEO and our CFO, Aaron Brewer. Our full prepared remarks are available on the IR website and we'll use this time to answer your questions. We'll make forward-looking statements on today's call, including statements relating to our business strategy and performance, partnerships, future financial and operating results, trends in our marketplace, and guidance. These statements are subject to risk and uncertainties that could cause our actual results to vary materially from those projected or implied during this call. These factors and risks are described in our earnings materials and in our recent SEC filings. all of the forward-looking statements that we make today's call are based on beliefs as of today and we disclaim any obligation to update any forward-looking statements except as required by law additionally today we're going to discuss customers for rideshare north america there are generally two customers in every car the driver's list customer and the rider is the driver's customer we care about both our discussion today will also include non-gap financial measures which are not a substitute for gap results reconciliation of our historical gap to non-gap results can be found in our earnings materials, which are available on our IR website. And with that, I'll pass the call to David.

Thank you, Aaron. Hello, everyone. Listen, Q1 represented another strong quarter for Lyft. We again delivered our financial commitments and again had double-digit growth in active riders, gross bookings, and adjusted EBITDA year-over-year, further setting ourselves up for a global hybrid AV future. Rideshare demand remained healthy. We saw double-digit rides growth around peak events like Valentine's Day, Super Bowl Sunday, and St. Patrick's Day. Stepping back, our share of the U.S. market has grown from the three years ago when I joined and has held above that point ever since, with an increase in Q1 over last quarter. And in March, we delivered our highest ever number of rides in a week. Taken together with our financial results, this continues to validate our thesis, the customer obsession drives profitable growth. Looking globally, we're now operating in over 120 countries around the world and have further deepened our presence in London with our acquisition of Getz UK Business, which we just officially closed this week. And finally, we took significant steps forward with our partner Waymo in Nashville with the construction of a state-of-the-art AV Depot. We continue to be extremely bullish about AV's ability to expand our market and about our own capacity to operate them at industry-leading utilization levels. the ultimate driver of profitability. And with that, let me turn it over to Erin to take you through a few financial highlights.

Thanks, David. The consistent execution David just described translated directly to strong financial results. In the first quarter, gross bookings were up 19% and adjusted EBITDA up 25% year over year. Over the last 12 months, we've generated a record $1.12 billion in free cash flow, and during Q1, we executed our largest quarterly share repurchase ever, totaling $300 million in the quarter. Looking forward, our guidance reflects continued momentum across the business. At the midpoint of our range, we expect gross bookings to accelerate to approximately 20% and adjusted EBITDA to expand by more than 30% year over year. And with that, we'll take your questions.

Let's dive into Q&A. If you have joined via the Weber, please use the raise hand icon, which can be found at the bottom of your application. When you're called on, please unmute your line and ask a question. Please limit to one question. We'll now pause for a moment to assemble. Okay, first question comes from Eric Sheridan with Goldman Sachs.

Okay, great. Hopefully you can hear me okay. I wanted to dive into the partnerships and how they continue to evolve. What are the key learnings as these partnerships continue to build in their momentum and build in their duration in terms of them as stimulants of increased frequency on your platform or just stimulants of increased new rider growth on the platform more broadly. We'd love to get a better sense of color there. Appreciate it.

Hey, Eric, it's David. I'll take it. Maybe Aaron will tag team on me a little bit here as well. So super good question. And I think I'm just going to maybe reset the table for one second, because I think the role of partnerships continues to be incredibly important to our current business and will be incredibly important in our AV business. So how we perform as a partner, I think is actually a good predictor. and how our partners perform is a good predictor of the future. Okay, so to your question, we got a record number of rides this quarter from partnership-tagged rides, ride requests, so about 27%, I think. That's a big deal. I think when we first started talking about this, we were 20%, then 22%, then 25%, and 27%. Why? Two reasons. Number one, we partner with great organizations that have huge TAMs, right? So if you look at some of our most recent ones, of course, DoorDash is still only about a year and a half old. United is more recent. even Southwest Airlines through their credit card program, these are enormous programs. And so they represent a huge opportunity for us to acquire new customers. Now, I'll come back to frequency in a second. Those customers are different, right? So for example, DoorDash customers tend to be very heavy users, and you can understand this, right? People eat three times a day, and they tend to take rides relatively more often than others. So you saw us obviously complete you know double down on that partnership by expanding that to canada okay you look at united airlines you know this is kind of a different vibe right they tend to be more business uh customers uh you know we out index and some of the united's big hubs now chicago being a good example where we had great growth this past year um they tend to be uh airport rides not not surprisingly which means higher bookings per ride which tends to mean higher profits so that's wonderful how do We reward United customers, but we give them miles, which they've done for years now. I think we've got, we're over 350 million rides, right around, excuse me, 350 miles awarded, 350 million miles awarded right around there. That's a big deal. And then a couple of weeks ago, we announced pay with miles, which is amazing. I mean, that's literally, you know, I don't know how many billions of miles or hundreds of millions, maybe United has banked, but this allows United mileage plus customers to, to pay with, you know, with their miles on Lyft. And that's wonderful. It's an industry first. and it deepens that relationship so you put all these things together and you get sort of a portfolio some tend to drive uh frequency and new customer acquisition a little bit more sometimes tend to drive uh you know other behaviors that we kind of like like airport rides and so forth um but super super important maybe i'll talk about av partners another time i don't think that was the sort of courier question but that's we remain very committed to that so the concept of sort of really developing the ecosystem going deeper and deeper in the in in the TAM, which is quite large.

Great, thank you.

Sure. Great, next question will be Doug from JP Morgan.

Hi, this is Neeraj on for Doug. So a couple of questions. One is on the SF commentary, I think you guys mentioned that you have continued to gain share and also saw rise increase by 20% in the ODD. So just curious given, you know, Uber has said there CP has gained, they have gained CP in the last six months as well. So just trying to understand the share dynamics there, like are you gaining share from Waymo? Or like how does the share dynamics work there? And the next one was, have you started seeing any elasticity from the California insurance mandate? Yeah, thank you.

Sure. Why don't I take the first half and then Aaron, you can take the second half. So broadly speaking, as we've said before, you know, we think AVs are an incredible positive for ride share and really it's because it's a great product and therefore you would expect over time that's going to bring new people, you know, onto the sort of into the ride share ecosystem. And when we look across sort of in aggregate, all of the regions where AVs are in the marketplace, we've effectively held share pretty steady, you know, so that's kind of a good scene because a good indication because it means that as new riders are coming on still the whole you know the whole pie is growing um san francisco we're doing great as we said we actually had an increase we've had nice growth in san francisco you know these things are always multi-variable we're also doing some marketing in san francisco uh so that you know is sort of a maybe confounding factor but we like what we see in san francisco i will say you know when i look at what the other guys say you know they maybe pick six months for a particular reason i'm not sure but uh broadly speaking, I feel pretty good about our position in SF.

Yeah, I'm happy to comment on California. So on our previous earnings conference call, we talked about obviously the insurance reform in California that we expected to deliver great value to riders and to drivers. We further talked about how we expected that to translate into increasing demand over time and sort of gaining momentum in the back half of the year. I can sit here today and tell you that as we got into sort of February, March, and even in here to the second quarter, we are seeing that growth begin in California, that growth in the first quarter outpaced other top regions. And so we're starting to see those effects. We obviously look forward to that momentum continuing for the balance of the year.

Got it. Thank you both.

Thank you. Sure. Our next question will be Nikhil from Bernstein.

Hey, thank you for taking the question. I wanted to ask about the ride's growth and appreciate the call out in the letter. That's helpful. Thank you. So the mid-single digit North America volume, if I'm reading it right, it looks like Canada is growing much faster, almost 50%. So it'd be helpful if you could maybe just outline what you saw in the U.S. business on a ride volume basis. And I guess the big picture factors that maybe weighed on that in the quarter, it seems like it's decelerated over the last few quarters. So just your perspective on what's happening there would be really helpful. Thank you.

Yeah, for sure. So a couple of things. I mean, the first thing to think was, okay, let's just sort of maybe level set on the data and then talk about worsening. So on the data, we grew both in the United States and in Canada, to be super clear. No question, Canada outgrew the US. I don't think it was quite to the degree you're talking about, but it was a very significant growth. I mean, we did grow something like 50% year on year in Canada. I get that a little bit wrong. Anyway, okay. So look, so North America, let's think about that. And then the US, North America, huge region, of course, super diverse, a lot of geographies and a lot of segments within those geographies. What we have seen is in Canada for sure, but also low-scale markets that we've been talking about for now, I don't know, six or seven quarters, that's where we are seeing our sort of outsized growth, for sure. Low-scale markets, again, you can sort of imagine those as maybe the Milwaukees of the world or maybe the Pittsburghs, whatever it might be, but sometimes second and third-tier cities or even more rural areas where there's a huge amount of TAM left and it's sort of underpenetrated. And then obviously in some of the cities, particularly the largest cities where rideshare has been active the longest, I would say the industry on average is seeing slightly lower rates of growth, or at least did see this past quarter. And I think that's an industry thing. And it has a lot to do just with kind of S-curves and being in markets for a long, long time. Okay. So once you look at that, then you say, well, okay, how are you going to re-accelerate growth in some of those markets? And that's where some of the segments, I think, become so interesting. So you've heard us, of course, talk about Lift Silver, which addresses older people who, by the way, take a lot of rides. And even on our platform, once they become silver members, they take a lot more rides. Lifting is still a very, very new product, huge opportunity there. One that obviously is sort of infinitely replenishing, you sort of might say. You look at the partnerships that we have in some major cities. DoorDash is a great, obviously, they've got both urban and suburban footprint, but anyway, they've got a nationwide footprint. You look at United Airlines, they've got real hubs, and some of those hubs are where we're seeing really good growth. We saw, for example, double-digit growth in both New York and in San Francisco. Part of that, of course, is also some marketing, right? We're now really leaning into this idea of a checklist. What we find, and of course, national studies show, is that when people check both apps, they tend to save money. That's a very powerful message and, frankly, one that favors us, both because of our pricing strategy and also, if you're not even looking at our app, then how can you be saving money? So there's a lot of room left there to go. So when I kind of look across all those, I see a lot of vectors for growth. It's why we're saying our rides are going to accelerate, overall we're seeing acceleration in Q2 and beyond. Maybe I'll turn it over to Erin to talk a little bit about that and then maybe some other things as well.

Sure. Yeah, I'll offer a little bit of color and a keel. In our prepared remarks, we quantified the impact that we saw that weather in the first quarter had on our overall rides, roughly about 3 million rides. You can think about that as a little bit more than half of that being bikes, bike rides overall, obviously, given the severity of the weather in the Northeast. Beyond that, I think it's important to highlight a couple of seasonal factors, right? We always have a deceleration naturally in the bikes business, Q4 to Q1, same with free now. Those both seasonally accelerate into the second quarter. So that, in addition to a number of the areas that David just mentioned, I talked about California. We've got a very healthy marketplace right now as well. Those are some of the underlying factors as we think about acceleration into Q2. And then maybe zooming out a little bit more broadly, really nothing has changed as we think about our trajectory here in 2026 and our overall objective to deliver north of a billion rides for the full year.

Thank you very much.

Next question will be Ben from Deutsche.

Great. Thank you for taking my questions. So the theme this quarter has been AI productivity and sort of the investments that companies are making sort of into tokens, for instance. so i'm wondering how you think philosophically about you know sort of balancing the need to maintain your improving margin trajectory today versus growing talent and also investing in these tools to support productivity and then secondly you know i'd be curious to hear what you're seeing in the market this quarter that required you to increase incentives per ride by 17 percent um could you maybe touch on that as well please sure again we'll sort of um tag team

this so um i mean maybe to state the obvious yeah i mean ai is amazing it's just it's rolling through our org just like every other org you know it's for the lightning pace i was looking at ai adoption recently just among the developers our engineers and just with a new tool we have a strategic relationship with with claude and a new tool has gotten to 80 some adoption over the course of whatever, 35 days, 45 days, the code generation tool there. So anyway, amazing. Now, how we think about it, I know you asked specifically about the cost of tokens and so forth, but just zooming up for a second, how we really think about it is AI builds capacity. It actually does two things. It builds capacity and it increases speed. So capacity and velocity, that's the way we think about it. And we see examples of this all across the organization. We've talked a couple of different times about becoming a more global org. Gosh, when you become a more global org, you have to do all kinds of things around data and privacy and security and systems integration and so forth. And truthfully, a lot of that is not particularly customer value app, but you just have to do And our team has just been crushing it. And a lot of the reasons they've been crushing it without having to hire a bunch of new people is we're relying on new AI tools that we've written internally or co-developed with others and so forth that allows us to get things done. Same with customer facing things. We'll talk about that maybe another time as a whole separate topic. But broadly speaking, I'd say we run a pretty clean ship. And what AI is allowing us to do is to move faster and to build capacity among our staff so that they can either be more productive or work on more things simultaneously or what Sure.

I'll take the question on incentives and sort of start with our usual line about incentives in this business, which fall in two places in our P&L, the Contra Revenue Line and Sales and Marketing Line, are used dynamically in the marketplace to balance and optimize overall You know, stepping back, that's why we always say that we are optimizing our P&L as we think about gross bookings, as we think about adjusted EBITDA. So I think that's important context. So let's kind of get into the details on the incentive line. If you think about contra revenue incentives overall, on a year-over-year basis, that's actually been a source of leverage. And in the first quarter, we had our highest driver hours ever in the first quarter. You know, very strong engagement overall. We talked a little bit in the prepared remarks about our most recent driver preference survey. Again, super strong results. So you see some leverage there in the Contra revenue line. And then as I think about sales and marketing incentives, I think it's really important to chat about this from a P&L perspective. So if you look at our performance in the quarter, you see strong revenue growth. You see gross margins expanding year over year. You know, I mentioned insurance being a point of leverage, so that's aided by that. We, of course, continue with our very disciplined fixed cost base. Why is all of that important to incentive? Because those are the things that can continue to allow us to invest when we see great return opportunities to invest in that rider incentive line. We do it very deliberately. We do it very focused on what the ROI is over the long term. And so some of that strong performance throughout our P&L gave us the opportunity to take advantage of some of those strong investment opportunities, especially at a time when the marketplace is performing so well. And we delivered across all of our financial commitments.

So hopefully that gives you a little bit of color about how we manage that piece in the quarter. good yes thank you next question is john blackledge with td cowan john hey john we're gonna we're gonna come back to you okay um we're gonna go to mike with motha nathanson oh wait oh i can hear somebody is that john yeah sorry sorry first time zoom no it's okay i'm kidding um

Could you talk about the strength in the high value modes and how much runway there is for further penetration of total rides? And then second question, would you expect this kind of divergence between GB growth and rides volume growth to extend into the second half or will the gap close a bit as we get through the second half? Thank you.

Yeah, we'll tag team on that one again. So a lot of runway there, or headroom maybe is a better way to say it. It's just, this is an area where I would say Lyft may be underinvested for some period of time and now has completely made up for lost time, let's say. So we're really focusing on improving the quality of the cars, the types of drivers, some drivers who drive for black and high value modes so we call this black xl even xxl actually a new product for big families anyway the the types of drivers you know we're sort of um let's say shifting towards a more professional set of drivers there uh of course tbr also you know operates in the very high end kind of chauffeur service as well so lots of growth there um uh and and lots of runway ahead i would say it's um yeah been an area that over the last couple of quarters you've heard us talk about the the acceleration and we have big ambitions there because there's a lot of demand to fill with a high quality product.

Yeah, and I'll take the one on gross bookings and rides growth rates. So if you think about the dynamic there in the first quarter, there's a couple of different components. Obviously, part of what you're seeing is this continuation of a very active shift toward higher value modes. We've been talking about that for a few quarters. The first quarter of that growth is up over 35% year over year. obviously adding in the free now business which carries a higher average gross bookings per ride is helpful and then separately but correspondingly we continue to diversify the things that add to our gross bookings where there may not be a ride attached things like ads and luxury for example and so those are some of the dynamics that driving that if you think about expectations for the second quarter, I do expect that delta between gross bookings growth and rides growth to narrow somewhat. You've got the significant seasonal expansion of the bikes business, I think is probably one of the main underlying drivers. So it will narrow somewhat as you think about those trends from Q1 to Q2.

Thank you. Thanks.

Okay.

Now we really are going to take a question for mike awesome thank you it was nice knowing that it was coming uh uh two if i can yeah time to prepare um but it was going to be the same questions anyways can we talk about pricing um in in the u.s market all inter-quarter we get questions from clients about what the third-party data shows for industry pricing kind of head-scratching um kind of ramp and then when we see this reported number i know that there's some free now aspect on it but can we maybe just simplify it like point blank um what year over year pricing is for like a lift standard ride i know there's a premiumization aspect but just to kind of level set that um and any nuance around that would be really helpful and then another question i'd love to hear how you're feeling about your ads business uh maybe some updates on the run rate there and if anything's changed on your outlook for the future if you're more optimistic or anything along those lines would be really great thank you so much david do you want to start with the ads business and and i'll talk about totally talk about pricing okay aaron and i are chuckling here in the background um yeah that sounds good uh so okay on ads ads as we said we've said we've talked about ads for a while i

and talked about how we were super pleased with sort of the run rate, the exit rate from last year. I think the sort of big picture that we have on this is, gosh, there's a lot of opportunity. And the reason for it is advertisers are always looking for new ways to connect with customers. And in an increasingly virtualized world where people are spending more and more time on their phones, the big open question is not, how do I do more digital ads? I mean, that is a fairly well-solved problem in a sense. What's really interesting is how do you actually connect that to the physical world and so if you look at some of the um the campaigns we've done we talked about sephora last time we talked about a charles schwab uh ad campaign this time that um i think in our prepared remarks uh actually i think just today we're doing something with with mcdonald's uh you know you start to see some really interesting trends where people are literally changing behavior as a result of being in cars when they're seeing ads um kind of in in real time oh also bikes here in San Francisco, Gemini is all over the bike system here. So same sort of deal, of course, city across all of New York City. So a lot of opportunities there. And then when you start to look at the audience we have, which is a fairly large audience, talking about 50 million people plus, then the question is, well, how can you take that audience and extend that? And so we're doing something called audience extension, which allows us to sort of extend beyond sort of our four walls. How can you take some of that same data and extend that beyond the in-car experience to you know off platform um you know through trade desk and through other you know ad brokers so there's just a lot of opportunity here and the person you know i call her out from time down the person who runs our ad group suzy rider joined us from youtube a couple of years ago where she had run their ad business uh for many years really started it and then kind of grew it to something quite big and we've got the same amount of conviction here you know it may not be quite the same size as youtube that would be that'd be impressive but uh but certainly we've got a lot of conviction that there's a lot of a lot of headroom ahead yeah mike and um to talk about pricing i appreciate the simplicity of your question and i may somewhat frustrate you because

you know as you know and following our business it tends to be fairly complex right there are changes year over year as you think about the mix of our business in in top markets or certain geographies which are going to carry higher average pricing we've obviously been growing very significantly in low-scale markets. So you've got some of that mixed effect, which makes it probably not straightforward to give you the best answer. I would offer a couple of perspectives, though. I think if you look over a number of years, this industry generally does see some amount of price increases if you think about longer-term trends over years. Maybe over the near term you know what i can tell you is sequentially from q4 to q1 pretty stable overall um a couple of questions ago one of the things i was trying to highlight as you think about our overall gross bookings and kind of the mix of that it has evolved it has evolved over time so we've uh you know we've talked about the significant growth of higher value modes in that mix, the addition of free now. We further talked about things like, you know, ads or our chauffeuring business, which contribute to gross bookings and have been growing obviously nicely, but don't carry the same rides component. So those are some of the areas, you know, sequentially, I would say overall pricing pretty stable as we think about Q4 to Q1.

So hopefully that's some helpful color thank you up next we have ken with wells fargo thank you can you hear me okay yes all right thank you um can you maybe can you help me a little bit strategically understand you've made several acquisitions um some in the kind of uh some are geographic diversification but others you know just you're it's not strictly in the rideshare business could you talk a little bit about how you see them all coming together strategically what are you know

what are the key like points of of synergy what what beyond geographic expansion to those assets uh why are they better together maybe i would just put it that way simply yeah um yeah let me take a stab at that so uh and and maybe a little it's just tiny bit of history i guess so we were not a particularly acquisitive company for a period of time and i think there's a pretty obvious reason for why it's because we were kind of just getting our base business you know going strong um last year we made our first significant acquisition at least as long as i've been here with free now that was definitely a rideshare acquisition of course it's a you know taxi focused you know kind of core rather than you know what's called phv in europe um but it expanded our footprint which is nice for geographic diversity uh into nine new countries and allowed us in that case in particular strategically also to build upon the government relations that a company that's been in the taxi business has had to have had for a long time which is going to be so important for avs so i would look at much of our acquisition activity in europe as important for geographic um diversity um but also for uh an av future you can see that with get as well, which just closed last word this week, actually. Get is a well-respected, largely B2B taxi service in London. As we mentioned, kind of the prepared remarks between that and the free now presence in London, we're on something north of 70, maybe 80%, something like this of the taxis that have apps in their cars now have a Lyft app in the car. So that's amazing because that allows us obviously access to a very, very important market, Europe's biggest rideshare market, arguably one of the most interesting and important in the world. And again, if you think of our activity in London, you know, there's a short-term issue there of kind of wanting to build volume in part because that's part of what we bring to the AB category, as well as government relations. Again, get actually directly works with governments, and then we've got good relations through free now. So I would say those are sort of the things. Now, TBR is the other acquisition that we've announced recently, also in the ride show space, but quite different. That's really a chauffeur space uh you know very very high end and i think that speaks to so we talk about this as up and out right out is kind of the overseas piece and up is how can we strengthen our position in uh in kind of higher end offerings and it's it's wonderful to have a very very top tier perhaps you may know tbr as often they kind of service non-deal road charges in the united states and abroad 120 countries um you know once you have a service level that is sort of marked at you know a 10 out of 10 that frankly brings your whole company up and so many companies of course are now making you know good money in the in the high end so i think that's maybe the that touches on

the the significant ones thank you okay next next question is going to be from ross with barclays uh great so this is a good follow-on from that last answer um can we just get an update on whether the free now kind of like for like is growing. I think it was like flattish when you guys made that acquisition. I know we have an anniversary, but is the business growing? And are there any like early proof points of U.S.

Lyft enthusiasts going to Europe and, you know, kind of, you know, whatever adding to the free now business that way any color there thank you so i'll start with the performance then david do you want to talk about what we've what we've got coming up on the on that on the writer side um so uh uh ross to answer your question directly yes the business is growing you know we talked about when we bought the business having uh about a billion dollar overall annual run rate uh that we talked about that being on track as we close last year we're out we anticipate growth as we look into 2026. okay and on the second part there we've just begun but maybe i

can give you kind of the arc of the of the project so today what happens um you know very directly if you're a lift user and you open up the free now app in london you'll get a um a notification saying if you open up the lift app i'm sorry you'll get a notification saying uh you know our Our partner, Freenow, is delivering rides here in Europe. And so it's a fairly kind of basic integration, just like that. And we do some other small things as well with Chase and some other things. Our vision for sure, and we can say now really by 2027, is that anywhere as a rider on the Lyft app, the sort of Lyft ecosystem, anywhere you are with that app and that we do business through free now or others you'll be able to open that app and be able to get a ride anywhere you want so it'll be a much much more tightly integrated uh experience that's happening over uh you know in 2027 and that's always been kind of the plan started is step-by-step integration such that by 2027 we're able to to debut that um once that happens of course then you would expect the business the growth of the business to be much more significant as a result of that work okay

Great. Next question is Chad with Oppenheimer.

Hey, thanks. Could you maybe talk about the margin benefits of some of these higher value rides as they become a larger share of overall rides and as well as taxi expansion into more cities? Thank you.

Sure. I'll take the margin profile. David, do you want to talk about taxi expansion overall? So absolutely, as you think about the higher value mode mix of rides, all the way up to and including TBR and chauffeuring that David was just describing, they absolutely bring a higher overall margin profile to the business. So the mix is not only helpful financially, but also gives riders a lot greater choice. and what we're seeing is when we um when those are offered up you know we're definitely seeing behavior where that trade-up will happen and so it's both uh satisfying rider needs and and desires at that point in time um but also obviously increasing that mix is bringing in a healthier margin profile yeah and i'm going to give a shout out to the our lift black in particular, and then zoom back out.

It's actually our highest rated ride mode. So it is a great product. It's been a little bit under marketed over the years, but as I say, we've both improved the quality of it and you're starting to see maybe a little bit more uptake. If you're on the call and you haven't taken it, I highly recommend and go ahead and pay with your United miles. Okay. And then the taxes, one of our strategic priorities this year, we talked about our internal framework for it, is expanding the platform. And you've seen some experiments we've done in a kind of small scale in st louis then i would say much more significant scale in la there'll be other cities beyond that uh it's great because taxes carry their own insurance so that's got sort of an interesting uh slightly different financial profile um than the you know typical rideshare that's wonderful and then of course taxes in europe are a whole different thing right it's a much higher end product a very predictable product uh in many countries and has also higher bookings per ride typically just because of again a combination of regulation and it's it's seen as It's a little bit more of a luxury product than here in the U.S. So yeah, when you look across our whole platform, I feel really good about our kind of building out a very strong foundation that then ultimately, of course, will embrace A-Bs as well. And that's next to come.

Next question will be Justin with KeyBank.

This is Miles on for Justin. I wanted to ask about loyalty. I was wondering if you could just provide an update. I know it's pretty early on lift cash rewards. And then maybe just a broader view. You know, you mentioned wanting to do more loyalty, so how that fits in with the strategy and then, you know, along with Link Lift Pink and your existing offering there. And then maybe just, you know, continuing on international expansion, you know, been pretty active in M&A and new geographies, obviously. But do you think, you know, this puts you in a position where you can start organically entering new markets now that you have more of a portfolio in places like Europe to bolster that expansion?

I'm sure, Miles, why don't I start with that one? And then we'll see if Aaron has anything to add or maybe not. So, oh, wait, I just totally spaced on your question. My apologies. Oh, loyalty. Yeah, of course, of course. Okay. So, right. So yeah, loyalty. So we've made some real inroads in loyalty. This is an area, again, of the company where maybe we've been a little bit kind of silent because we've been getting some things together behind the scenes. But here's what's happened. So in the last, I think it was last August, we really started to lean into loyalty for our business riders so this is a really interesting program so so we have not really had a good business uh product for some period of time when it came to a loyalty product and uh and this was causing us some pain in the marketplace and so uh what we did is we said well let's come out with the best program that there is for rideshare full stop we'll stop and so here it is super clear it's free okay that's very important and it's six percent back um up to eight percent back depending on your mode and then you also get uh points multipliers for united and um hilton and alaska if i'm not mistaken um and that's great uh i'm gonna say the free part one more time it's because it's quite important we have a competitor out there that sells something else and we internally we sometimes talk about it as selling a time bomb um they'd say it that way but you know you sell something for free and then a couple months later it starts to uh starts to charge you so uh we don't have that we have a product that's a free product that gives you immediate rewards back for what we call our managed business rewards program we've learned a ton there. It's been quite successful. I forget the exact statistic, but it's significant. Maybe I can kind of find it as I'm talking here, but it's been significant. It's grown very significantly and has some kind of interesting characteristics about how many more rides people take once they start to sign up. So that's kind of been the basis of it. You also mentioned lift cash rewards as something we're experimenting with on the consumer side. Super cool, still relatively small because it's definitely an experimentation mode. But what I think you can see is we're starting to put some energy in this area. And, you know, this is a bit of a stay tuned story, but something that we've got some good stuff to talk about in the future.

Maybe I can add in some of the stats on business rewards overall. So, you know, if we think about sort of first-time rides on rewards-eligible business profiles, that grew 59% year over year. And those rewards-eligible riders are taking 25% more lift for rides per month. So we're super excited about what we're seeing kind of in these early phases. You know, that tells us a lot about that we've got a great product overall, that people are finding value in it. They're taking more airport trips. So a little bit more on the stats.

And then I think you had a question I know about kind of organic expansion maybe in the new markets internationally. I think that's probably one we're not going to talk too much about.

Okay, next question. We have Shwara with Wolf Research.

Thank you for taking my question. Two quick ones for me, please. First, I'm sorry if I missed it, but did you quantify the impact of the fuel program on your P&L? If not, could we please get a sense of the impact? And then the second is how should we think about the partnership rights growth? So the 27% data point is great. Any sense on how that cohort of 27% of the rides, what that growth is versus the non-partnership rides? How does that compare? Thank you.

Shweta, I'll take the fuel question and then turn it over to David. So we talked in our prepared remarks and on this call, we're really proud just generally all the time about the way that we engage with our drivers about the continued preference that they demonstrate for our platform. And I think that's important because we're super proud to have been really first out there with a relief program. I think it says a lot about who we are as a company overall. And what we did in this overall program is really take the approach of leaning in with our partners. We've got a great driver rewards program overall. It offers all kinds of benefits to partners. And so leaning in with our partners to provide relief here in terms of, you know, drivers can get almost a dollar in savings across all the programs. That's really co-funded overall, if you think about the way that those benefits accrue. So while all of this is meaningful to drivers, certainly and material to them, it's not material to our overall financial profile, nor do we expect it to be in the second quarter.

And then on the partnership side, there's not too much more I can say, but maybe just give a little bit of color. Maybe two ways to think about one is like different partners do provide different types of um benefits to us as a as a business on average partners tend to be quite strong at bringing higher sort of higher bookings type rides on average uh united you can you know absolutely probably imagine why that would be true same with alaska same with hilton um uh same with chase and um and sometimes it's quite significant You know, so it's a sort of a new set of rider or a set of riders who are taking, you know, typically higher priced rides, which tend to have higher margins and people tend to be quite loyal to those programs and therefore they take, you know, rides, you know, quite regularly. Then you have maybe more of a sort of volume strategy with DoorDash. I mean, DoorDash is kind of the, you might sort of think of it as the volume anchor, you know, because it's got such a large program, but it also, DashPass, but also, you know, as I mentioned, you know, people eat, you know, quite a lot. and so therefore that's an important piece of the of the puzzle so uh in in overall as a portfolio tends to be you know quite a healthy part of our of our kind of ride um a rider portfolio so that just kind of gives you a sense of how we think about it different have different uh characteristics but on average really quite quite nice typically on the booking side and frequency side okay thank you both sure and the last question is going to be with rohit from roth capital did we lose you

hey can you hear me now uh it said unmute i hope you can hear me okay um i had two questions one on pricing and one on avs um you talk about this checklist lift messaging campaign, are you seeing any kind of measurable changes in rider behavior since you launched it? Perhaps improved conversion from price sensitive shoppers and kind of, if you think and becomes a normalized kind of consumer behavior, is there a scenario that could lead to more structural pressure on industry pricing over time? Or perhaps there is more pricing power that both companies have that that's just first question and second on avs uh it feels like uh the three cities closer to launch nashville hamburg london and can you just level set how are you uh operating in uh or offering uh your services lead the orchestration layer lead operations um depot management perhaps stop to uh your capabilities across those three places Sure, Rohit.

I'll take this. And these are big last questions, but let's do it. Let's do it. Okay. Yeah, no problem at all. So, okay, on pricing, let's talk about that for a second. So, okay, you asked about sort of results and then maybe kind of the implications on the future. The results right now are great, promising, but it's still very early. You know, it's quite an early campaign. You'll see us turn up the volume there, which is probably a good indication that we like what we see so far. You know, this is a very, very price competitive, already a very, very competitive marketplace. You know, I don't think either company truthfully has a lot of room on the price side because if we did, you know, we would have done it. You know, we do it every day. You know, another way to say it would be three million times a day. we try to offer the best price we possibly can, as Aaron says, reliable, competitive pricing is our strategy. So that is maybe not something I worry so much about. What I do think is true is customers who check both apps tend to do better. And there's that study out there that says in New York, they'd save $170. It's just true. The more people who kind of check both, I think the healthier the marketplace gets, keeps us both on our toes. So that's the way we think about it. Obviously, our position is kind of a nice one to be in because we offer a very competitive product, fast ETAs, in many cases, faster than the competition, good pricing, in many cases, less expensive, although clearly not always, the competition. And so if more people check us out, then we can start to impress them with the quality of our service and so forth and so on. And now I can talk all about driver cancellation, how we've done a great job there and pick up times and so forth.

So it kind of seems to be very nice reinforcement once people once people get into our um our place yeah i'm gonna turn it over to air and then we'll come back on ap yeah maybe before you dive into avs rohit i think something interesting to point out david mentioned early days you know this campaign has been live in san francisco and new york these are two cities that also have a pretty heavy mix of premium modes so in your question was the implication of sort of price sensitive riders and hopefully what you gathered from david's answer but i think it's really important in our observation in these early cities is that's not really the thing, right? The thing is just, hey, check, as opposed to doing something maybe out of habit, just check. So I just wanted to clarify that.

Absolutely right. Super appreciated. And by the way, everybody likes a deal. Everybody likes a deal. And we see that up and down. On AVs, okay, so you mentioned a couple of areas where we're a couple of cities that we've talked specifically about. Let's give you a quick update on each. um maybe start with uh nashville then go to london then go to hamburg so in nashville um it's actually quite exciting you see waymo's on the road right now uh later this summer we start to take over operations of that then we open up our whole you know kind of new center this 80 000 square foot center and then you'll be able to actually order a um uh you know a waymo on the on the lift app um you know in our hybrid marketplace there which is really something we're very very excited about It's going great. How can I characterize it? I guess what I would say there is, we've been in a very nice position for the last 10 years. We have about 50,000 cars that we've had to manage through our FlexDrive subsidiary. Those 50,000 cars have driven literally billions of miles, billions of miles. That has required an enormous amount of expertise or that has deliver to us an enormous amount of expertise on maintenance and availability and so forth. And we think we're industry leading on the operation side. So when you look at the partner we have in this case, Waymo, probably the world's, no, not probably, inarguably the world's leader in AV tech. And then you marry that with what we believe is the world's leader in fleet operations and efficient fleet operations, low cost fleet operations. We really are very excited about we see there um so that's kind of where that where nashville is and and over the summer you'll see that grow uh pretty quickly uh okay in london it's a different situation in london our partner is baidu uh baidu you know arguably the second uh you know sort of most advanced technology out there certainly in terms of driver of miles driven and so forth and so on i was actually just in china a couple weeks ago meeting with them uh you know incredible company their rt6 cars have just rolled off uh literally the docks the same ones i was riding in in in beijing are now uh in in london they're beginning mapping streets um it'll take a while there uh it takes a while when you when you when you add a new um uh you know technology to city streets you know there are regulators that you have to work with and we're spending a lot of energy working with regulators on issues like data privacy for example very very important but i'm super proud of our team um and they've made incredible progress there and then there's just the physics of the thing uh you know and just as a quick story in london a lot of small streets that are two-way and sort of how do you navigate you know two-way street with uh with with avs where you can't you know signal each other you go first you go first so these things take time but we've got an odd that's beginning to get mapped out uh and we're sort of beginning there so a little bit earlier in the process just because it's a um yeah but at the same time very much on track and then hamburg that's a different thing hamburg is really just we've um established a partnership with the city level saying that we're be the ab provider there um we haven't given too much more detail on it um i won't do so today but it just gives you a sense that you know things are going to roll out both in the u.s and europe you know in in a number of different ways so that's kind of where things stand okay listen i think i'm getting the wrap up uh so yeah you're so welcome thank you rohet and thank you all um really appreciate your joining the call today of course uh looking ahead super excited about another strong year coming up um uh as we continue to track towards our 2027 targets Thanks for coming along on the ride with us. We take care and we'll see you next time.