Hello, and welcome to the Uber First Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, press star 1 on your telephone keypad. I would now like to turn the conference over to Balaji Kirsten Murthy, Vice President, Strategic Finance and Investor Relations. You may begin.

Thank you, Operator. Thank you for joining us today and welcome to Uber's first quarter 2025 earnings presentation. On the call today, we have Uber CEO Dara Khosrowshahi and CFO Prashant Mahendra Raja. During today's call, we will present both GAAP and non-GAAP financial measures. Additional disclosures regarding these non-GAAP measures, including a reconciliation of GAAP to non-GAAP measures, are included in the press release supplemental slides and our filings with the SEC, each of which is posted to investor.uber.com. Certain statements in this presentation and on this call are forward-looking statements. You should not place undue reliance on forward-looking statements and actual results may differ materially from these forward-looking statements. We do not undertake any obligation to update any forward-looking statements we make today except as required by law. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today as well as risks and uncertainties described in our most recent Form 10-K and in our other filings made with the SEC.

We published our quarterly earnings press release, prepared remarks, and supplemental slides to our investor relations website earlier today, and we ask you to review those documents if you haven't already we will open the call to questions following brief opening remarks from dharam with that let me hand it over to dharam thanks apology we're off to a strong start this year against the dizzying backdrop of headlines on trade and economic policy each component of our multi-year growth framework is humming our audience grew 14 to 170 million monthly active consumers engagement strength continued with trips up 18 and with retention rates hitting all-time highs globally and gross bookings grew in line with trips fueled by strength across both mobility and delivery we see this as robust healthy growth growth that's not coming growth that's coming from engagement and frequency not just price we think that's the right way to maximize long-term free cash flow per share and in q1 we generated record adjusted EBITDA of 1.9 billion, up 35% year-on-year, and free cash flow of 2.3 billion. The Uber team has been a major execution mode. We launched with Waymo and Austin with around 100 cars that are all exceptionally utilized. We announced five AV partnerships with deployments to come in the U.S., Europe, and the Middle East. We signed a partnership with OpenTable to integrate dining, delivery, and transportation for our customers. And we went live with our Delta SkyMiles partnership And we announced the acquisition of Trendy All Go to supercharge our future growth in Turkey, and that is all just in the last two months. Looking ahead, our Q2 outlook should underscore our expectation to reliably deliver more of the same strong top-line growth combined with even stronger profitability growth, setting us well for the seasonally stronger second half of the year. And as I said to my team, I feel great about where we stand. We're on solid footing with a clear strategy and ambitions that have never been higher and that's why i'm emphasizing that good is not going to be good enough we need to be great to continue to deliver for the people and cities that we serve and of course for all of you so with that let's uh get some questions going thank you operator we're ready thank you your first question comes from the line of Doug Anmus with J.P.

Morgan. Please go ahead.

I've heard taking questions. I have two. First, just on mobility, as you work to keep prices low, curious what kind of elasticity you think you're seeing in terms of the response and how that's showing up in rides. And then on AV, you talked about almost 100 cars in Austin on the way to hundreds.

What are you seeing there in terms of utilization of those Waymos relative to some of their other markets thanks yeah absolutely so doug on mobility um the elasticity that that we're seeing is is similar to uh the past you you know usually for uh dollar of uh increase in terms of price um transactions uh are negatively affected now there's short-term elasticity and long-term elasticity there's elasticity that you see in session and then we think there's longer term elasticity, which is as you tend to kind of get used to prices not increasing as much as they were in the past couple of years, how do your habits change? How does sessioning change? So we're happy with the results that we saw in terms of the pricing that we were able to deliver to the consumers as we saw the insurance headwinds ease a little bit, and hopefully we'll keep that going there was also kind of a mixed shift in terms of trips um a bit more growth internationally uh than the us especially in the travel sector uh that affected overall uh so to speak but so far i say so good in terms of uh elasticity uh in terms of az in uh in austin uh we're very very encouraged with uh what we're seeing uh obviously waymo has a safety track record second none um consumers are loving the product often rates are very very healthy and uh the ratings are healthy the team on the ground is doing a terrific job in terms of uh repairs and cleaning and recharging the cars etc to make sure that the waymos are available for rides and then when the waymos are available for rides they are very very busy uh so we're seeing uh very high utilization of the vehicles in terms of trips per vehicle per day um as a matter of fact the average waymo in austin is busier than 99 of austin drivers is defined by kind of the number of trips per day per waymo as well so very very encouraging uh early days uh we are going to continue to increase the vehicle count in austin and we're super excited for expansion in atlanta as well as some of the other av announcements that we've made and the expansion that we see both in the U.S. and especially outside the U.S. as well. Thank you, Dar. You're welcome. Next question?

Your next question comes from the line of Eric Sheridan with Goldman Sachs. Please go ahead.

Thank you so much for taking the question. I want to know if we could go a little bit deeper on the broader competitive landscape, if you could give us a bit of an update on what you're seeing competitively, especially around either pricing dynamics or incenting supply and demand across both mobility and delivery and if there are any specific geos you wanted to call out from a competitive intensity standpoint thank you yeah eric this um these markets continue to be very competitive uh on a global basis in terms of mobility we've got a strong competitor uh domestically here and in list i think we're more focused on competing with each other on service, on quality. Obviously, insurance is something that's hit both of us as well. So I'd say the competitive intensity in the U.S. is pretty consistent. And then internationally, of course, we've got both in Europe and Didi and Land America. They're strong competitors. They continue to focus on expansion. And I think as you see about our results, we're the number one player in the vast majority of markets in which we operate. And even at a very competitive market, our category position continues to be market leading. And then the same in delivery as well. Obviously, the U.S. market is highly competitive. We're seeing terrific growth, both in terms of top line, in terms of margin, in terms of our grocery and retail business that accelerated this quarter versus last quarter. And then you are seeing some consolidation in the sector, in the food delivery sector. You know, we were early to the game in terms of growing internationally organically. We're seeing some consolidation happening, inorganic consolidation happening, and that's to be expected in markets that are as large and as competitive as ours. So I say no change. We can't rest for a second. And because of our global position and because of the unique platform that we have, we think we can hold our own and end some.

Great. Thank you.

You're welcome. Next question?

Your next question comes from the line of Brian Nowak with Morgan Stanley. Please go ahead.

Great. Thanks for having my questions. I have two, one on Austin and one on U.S. mobility. Just going back to Austin, Dara, can you sort of walk us through how you're thinking about a size of a fleet or an internal timeline or target when Austin Waymo combined with Austin and human drivers could sort of better be matched supply-demand to drive incremental volumes to Uber overall? When do you think that could happen? Then the second one, maybe just kind of drilling a little more into U.S. mobility, any update on sort of how quickly U.S. mobility is growing and sort of how the suburbs versus the more urban areas are trending?

Yeah, Brian, in terms of Austin, you know, we're really focused on making sure that the experience every single day is an excellent experience we're absolutely growing the fleets it's going to be over a hundred vehicles soon based on the trends that we're seeing and really the focus is on keeping the utilization of the vehicles at the high levels that we're seeing and making sure that safety and customer experience aren't compromised in in any way at this point we're not really a goal in austin isn't necessarily for incremental trips one way or the other it's just to make sure that every single ride is is the perfect ride what we see over the long term is if we provide a service that is highly reliable um where the every single trip is uh exceptional prices are reasonable eta's are predictable then over a period of time the business grows uh and we are able to gain category position and we see more consumers kind of coming on tour onto our platform the fact is that you know less than 20% of adults 18 plus 18 and over user platform on a regular basis so we think there's plenty of room for growth so the focus right now is kind of day-to-day making sure we get it right and making sure that the streets of Austin are safe second question yeah

Brian it's Krishan I'll take that I'll take the second part and that it was on mobility growth. So maybe let's set some context. For the last couple quarters, I think three quarters now, we've had about 19% year-over-year trip growth. So very strong trip growth. And as we look at what we've incorporated into the guide, we're thinking that it should be around the same and that we're fortunate to still very heavily led by audience growth. When we look at that conversion from trip growth to GB growth, we are starting to see the gap between trips and growth bookings narrow a bit because we've been able to pass along lower insurance costs, primarily here in the U.S. You might remember we indicated that in the latter part of the year that we would expect better insurance costs in this year, and that's exactly how it's turning out. The other item that Dara made mention of earlier in one of his answers is we are seeing a slightly higher mix of international trips, and that's a bit due to that lower inbound U.S. travel, which comes with lower gross bookings per trip. But despite sort of this mix shift, you'll notice that we were able to print all-time high margins for the quarter. So we're able to really continue to pass those insurance costs through. There's no economic impact of that to our shareholders, and we're able to put the margins and continue to show that sort of margin accretion story. And then lastly, I think you asked a bit about growth in the suburbs versus the urbans. a metric that we're now able to share is that sparser markets, which are growing at a faster rate than our core, represent about 20% on a trip basis for mobility. So we're continuing to see great growth in those sparser markets because it's growing faster, but it's also a sizable percentage of the overall mobility volume. Great.

Thank you both. the next question operator your next question comes from line of ross sandler with barclays please go ahead uh great just question on the delivery uh margin and a call out you guys made in the uh prepared remarks so you said that restaurant delivery has profit margins that that are modestly lower than uber x profit margin so that's an interesting nugget in itself um I guess the question is, looking at that, what does that say about the cadence of margin expansion at grocery and retail? I think you also said that that part is at a 2018 kind of equivalent maturity. And then how much of the restaurant margin, you know, being way up there is because of advertising just because of time and market and, you know, the usual kind of retention cadence, et cetera. Any thoughts on that?

Sure. Thank you, Ross. I'll go ahead and take that. So delivery has been a pretty incredible profit story for us. If you look at the results for the quarter, delivery margins are at 3.7% of GBs. That's up 70 BIPs versus where it was just a year ago very strong expansion now that margin expansion is primarily being driven by advertising and the leverage we're getting uh just from the scale the opex leverage that we get from scale and that's been a fairly consistent driver of what's been behind the margin expansion over the last couple quarters um the uh the item that i'd probably uh highlight there is that the our cost per trip continues to show great improvement. That's the benefit of the scale we have declining. It's declined both quarter-over-quarter and year-over-year. In the delivery profitability numbers, that includes our grocery and retail, which you made reference to. Remember that we said in Q4 of last year, grocery and retail hit break-even for variable contribution, And in Q1, it's now starting to accrete at variable contribution levels. So that grocery and retail business has great upside, and it's going to continue to grow both as a result of advertising, but also as we continue to improve selection. I will call out one item that may not be notable to everyone is incremental margins for delivery in Q1. We're 9%. So with that very strong top line growth, it's a reflection of what just the earnings power of this business can be with continuing to see that opportunity to drive margin expansion. Having said that, as we've said consistently in our calls, we need to always find the balance between growing profitability and growing the top line. So I don't want to overcommit to the growth in delivery profitability. We're looking for steady margin expansion so we can continue to invest in growing the top line of the business, given that we have so many opportunities to invest in.

Next question, please.

Your next question comes from the line of Mark Mahaney with Evercore. Please go ahead.

Okay, thanks. I'll try to first just on the insurance headwinds. Do you feel like that's mostly behind you now? Just talk about where you think ongoing leverage against insurance costs are. Is that something that's kind of structural to the industry or those things, you know, kind of workarounds or improvements that you've been able to do? And then, Dara, in terms of AV partners, and, you know, you've got a pretty good view on all the different offerings that are out there. Waymo's doing a fantastic job. Who do you think is coming – who do you think in the marketplace is closest to Waymo now in terms of having the ability to roll out at, you know, a decent scale a true AV experience?

Dara, why don't you take the Waymo one first, and then I'll close with insurance.

Yeah, sure. Sure. Mark, it's hard to tell exactly who has what capability because AV is still very, very early in terms of its development. I tell you that, listen, in China, you have AV product that is in market today from WeRide, who's a partner in Abu Dhabi and Dubai and expanding in 15 countries. Pony, whom we expect to introduce to the Middle East sometime in Baidu as well. These, they have essentially AVs running in Chinese cities right now, very challenging traffic conditions and conditions generally. And then there are a lot of other players that are showing incredible promise as well. You know, we announced a partnership with Main Mobility, with BW, with Momentum as well, where we expect to see an AV development deployment in Europe as well, and AV ride. So, this is a technology that has been proven. Waymo is definitely the leader there, but there are many other players investing in the space, and we expect to see, you know, a number of successful companies in the space hopefully partnering with us.

Yeah. So, Mark, on the insurance question, if you remember in Q4 of last year, we indicated that for 2025, we thought insurance increases would moderate and more likely be in the high single, perhaps low teens area. And we actually overestimated it. CPI print for March was coming in at 7% year over year, and that's the lowest we've seen in almost three years. So as we think about our U.S. mobility insurance cost expectations for the balance of the year, we're thinking that it will continue to be a very modest headwind of high single digits through 2025, and that is meaningfully lower than we've seen in the last two years. and certainly given the rate of growth for the U.S. mobility business, that's going to create some leverage for us. But as I said in my prior response, we intend to pass those opportunities on to consumers. Now, where we are getting some incremental strength from the great efforts of our team are in a few areas. First, on safety tech, some great innovation that we're driving in this space, including giving our drivers insight into how their driving behavior is being scored. And that is now live in all U.S. markets, and drivers are responding very favorably to being able to understand their actions like speeding, harsh braking, acceleration, et cetera. So that's one element that we've now deployed across the U.S. On the policy side, which has also been an area that we've been talking about for a while. We're getting some great momentum there. For example, just in this first quarter, a tort reform bill is in Georgia awaiting the governor's signature. And if we get through that, that's going to be a meaningful step to combat some of the legal system abuse and is going to help us continue to drive down insurance costs over time. And we have other bills in other states like Nevada and Texas and continue to have some good discussions in other areas. So overall, I think that the energy that we're spending on insurance, both because we have a captive that allows us to create tension on pricing, we have an organization of engineers that's really working on finding new technologies, and the efforts that we're doing on the policy side are going to continue to make this a more favorable situation for us than it has been over the past couple of years.

And Mark, I just stress on the policy angle that U.S. drivers are not less safe than drivers internationally. The cost of insurance that has to be paid on to consumers outside of the U.S. is de minimis compared to the U.S. So this is just a huge part of the inflation that consumers are experiencing. We're hoping that local policymakers and the administration in place, you know, want to fight inflation as much as we do, because really this inflation is caused by abuse of the legal system. It's entirely unnecessary, and we're hoping that policymakers can work with us to bring prices down for consumers and more of the fares going into the driver's pockets. That we really think is a win-win. Okay, thank you very much.

Thank you, Brad.

You're welcome.

Your next question comes from the line of Justin Post with Bank of America. Please go ahead.

Great. Just like a question on the macro, you mentioned maybe slower airport trips, but any impact on mobility rides or pricing or delivery, you know, lower AOVs or anything like that on the macro or contemplated going forward? And then can you give us an update on competition in Bay Area and San Francisco – I'm sorry, Bay Area and L.A.? I know those are areas where WAMO is operating. Just any update on the competition there.

Yeah, absolutely. So in terms of macro, Justin, we're watching it pretty closely. We don't see any signals that I described as significant. Audience growth is very consistent with last quarter up. 14% frequency is consistent as well. So we are looking to modulate price increases, and you saw that in our results as well. But we're not seeing, like, you know, basket sizes continue to increase. I think that would be a leading indicator to the extent that there was macro uncertainty. We're not seeing trade downs in terms of the kinds of restaurants that our eaters are eating at. So it's absolutely something that we're watching, but we don't see any signal as of yet in terms of the consumer. And remember, the categories that we operate in, you know, these are restaurants, transportation, grocery, tend to be categories that are quite consistent, even during periods of macro uncertainty. So I think from a relative standpoint, we're, you know, a little bit less subject to these issues. But right now, we don't see any signal whatsoever, and hopefully it'll remain the same. And, you know, you kind of see that in the guidance, which is pretty consistent in terms of top line with this quarter. In terms of San Francisco and L.A., the competitive environment, pretty stable, Justin. We're not seeing any change there. We are very supportive of Mayor Lurie's plans to kind of get San Francisco going again. And we think that will benefit all of the competitors in that marketplace.

Great. Thank you.

You're welcome. Next question.

Your next question comes from the line of Ken Gorelsky with Wells Fargo. Please go ahead.

Thank you. Two, if I may, please. First, maybe one for Brashant. Given the affordability initiatives and the commentary on insurance, but also your kind of preview of the Go Get event later this month, could you talk about the impact potentially on mobility margins in the second half of this year and beyond? And then one for Dara, please. If you could talk, expand a little bit more about your view of the AV landscape, kind of both inside the U.S. and outside the U.S., when do you see software-enabled AV solutions as a scale commercial option? Thank you.

Yeah, Ken, so let me – I'm reluctant to guide for the second half, but I can say this, that we are committed to continuingly showing steady margin improvement on a year-over-year basis. But as we've said many times, we're going to manage the P&L across both lines of businesses and striking that really tough balance of investing for growth when we have so many opportunities to invest in while continuing to drive the profitability of the company. We shared some pretty strong profit expansion in the mobility business this quarter on a sequential basis and on a year-over-year basis. I would not take that as an indicator for how you want to model the balance of year. I think that steady margin expansion throughout the cycle of this company on a year-over-year basis is how you want to model us out.

Yeah, in terms of AV, we're seeing a ton of innovation in the marketplace that we're actually quite excited about. And generally, you see, you know, really, I would say AV tech was based on heuristics, a bunch of if-thens based on different scenarios that were being built. And we're seeing players like Waymo and a number of others move more and more the heuristics logic into large transformer models to create more flexibility, better scalability, better cost, etc. And those kinds of models also have the benefit of not having to be overfit to a particular compute or hardware or sensor stacks as well. They are generalizable in terms of where they drive, and they're more generalizable in terms of the hardware kit that's necessary, the sensor kit, et cetera. So that is all moving in the right direction as far as separating the software stack from the hardware stack. I think a lot of you probably saw the announcement of Waymo partnering up with Toyota. that's just indicative we think of where av is going which is you've got pure play software developers increasingly offering more sophisticated av platforms to the oems around the world and a world in which you know 10 years from now every single new car sold comes with level four level five av we think is a terrific outcome in terms of safety for the streets and also our platform which will allow, you know, any player, any owner of those vehicles, whether it's financial institutions, et cetera, to monetize those vehicles at the highest utilization so that they've got the lowest cost of capital. So the direction that we're seeing is absolutely, it's very encouraging. There are some players out there that are pure, call it next generation, large models, end-to-end models as well. You know, these are the waves or the lobbies of the world in in trucking or momenta as well um and that is a more pure ai kind of direction uh which has been incredibly promising in terms of the pace of development and again the generalizability of the software both in terms of where it's driving and the hardware kits as well uh so the innovation that we see is um is pretty incredible uh we are obviously working with many of these partners around the world i think we've got an excellent point of view as to who the leaders are and you're seeing us partner with many of the leaders in the industry so hopefully more to come and you know we've announced i think five partnerships in the past week um it is coming fast and furious and and the the innovation and the uh uh development there is pretty exciting for us thank you both you're welcome your next question comes from the line of Shweta Khajuria with Wolf Research.

Please go ahead.

Thanks a lot for taking my questions. I have two on delivery, please. Dara, could you please talk about your affordability efforts in your letter? You talked to, you know, four key areas, and affordability was one of them. So if you could please expand on that, that would be great. And then the second is just, in Europe in particular, we have seen now you have a majority stake.

You just announced, and then DoorDash announced delivery. so could you please talk to that market how fast is it growing uh what is the competitive landscape look like there um and how do you view consolidation thanks a lot yeah absolutely so in terms of delivery we we are very focused on affordability as it relates to delivery as well um and the two efforts that i would point out you know one is membership so membership essentially is our lowering prices, no delivery fee, for example, for members and for the most loyal customers that we've got. Members tend to have high retention. They spend three times more than non-members as well. And our membership program now with 30 million members is delivering billions of discounts, so to speak, for those members. And our penetration of membership continues to increase on delivery. It's over 60% now. And in certain markets, it's at the 70 plus percent mark as well. So, we think more members, getting better deals, getting more discounts is a good thing. And that's part of our business that continues to grow. the second area of focus that i point out are what we call merchant funded offers these are essentially offers that merchants can put into the system uh i just enjoyed one a couple of nights ago it's kind of buy one get one free or other kinds of discounts uh merchants like those discounts because you know their cost of food isn't necessarily um uh they get to kind of use the cost of food as as the discount and and they can enjoy a margin on their on their food and we're seeing higher and higher percentages of merchant funded offers in the marketplace uh merchants who who put these offers into the marketplace increase their visibility in the marketplace and are able to increase their sales in the marketplace as well we're seeing growth in both and we think that is partially responsible for the consistently high gross bookings growth that we're seeing in delivery both in the u.s um and and internationally as well uh and then to your question in terms of uh in terms of competition especially in europe we're really really happy about our results in europe uh we recently uh we believe got to the number one category position in the uk uh with eats um entirely organically we didn't have to buy our way into glory uh so to speak, France remains a top market for us. And we think that Germany, for example, is a market that holds a significant amount of promise. I think we launched in Germany three to four years ago, and our category position continues to increase in Germany as we invest in that market, both on the mobility and delivery side. So we're seeing very encouraging trends in Europe. And And frankly, it's not a surprise to see some of our competitors look to expand there inorganically. We like organic expansion more. We've been investing for years in these marketplaces, and I think it shows in our results.

Thank you, Dara. That was helpful.

Next question.

Your next question comes from the line of Michael Morton with SVB Moffitt-Nathanson. Please go ahead.

Good morning, everybody. Thank you for the question. One on delivery and then one on mobility. For delivery, as we see the continued adoption of these large language models introducing shopping experiences, they seem to be preferring different retailers than, let's just say, the two giants in which we're all aware of. And it seems like a natural opportunity for Uber to work in partnership with these retailers you already work with to deliver the local inventory. So, Dara, I was curious, any possibility of partnerships with the ChatGPTs of the world? And then I think one for Prasant on the sparse markets. Could you talk about the duration of this opportunity and the ability to continue offsetting some of the natural deceleration you've seen in some of your urban markets? And then maybe help investors think about the margin profile of the sparse mobility markets compared to your core kind of urban markets. Thank you so much.

Yeah, I think on delivery and large language models, you know, we're very, very early in terms of the development of these of the models and their application to consumer experiences or enterprise technology. And I wouldn't say that right now our focus is to kind of push volume from one merchant to the other. It's really to focus on improving the customer experience. And, you know, it starts in smaller ways. So, for example, we're using larger models in terms of our restaurant and grocery search so that we understand more about the context of the consumer, we get to know the consumer more, and we're able to surface better results, higher quality results in terms of search, in terms of the sort order of restaurants that we're offering you or the promotions that we're offering you as well. And then we absolutely are working with open AIs of the world and the other leading LLMs and LLM companies in terms of some of the agents that are being built and being able to offer kind of an Uber experience that is seamless and delightful that you can talk to as well. I'd stress that it's very, very early in experimentation phase, and we're going to be working with them to understand what the possibilities are. We have unique access to transportation inventory. We are global, obviously. We have human drivers. We have AV drivers. We have food available, grocery available. So I think we're kind of the partner of choice for many of these players. But right now, the focus is how do you build consumer experiences that are delightful? How do you make every single service of ours a little bit more optimized for consumers? And then, you know, we'll deal with the after effects later in terms of merchant concentration. It's just not something we're focused on right now.

I'll take the second one. Thank you for the question, Michael. Maybe I could start with just a gentle correction to a comment you made about deceleration. It may surprise folks to know that the vast majority of our top 20 cities are still continuing to grow at double-digit rates. So we are still seeing very strong growth in our core areas. But what we do see is we see the opportunity to increase the length of time that that core business can grow at attractive rates by investing into these sparse markets. And we're already seeing great indications, for example, in mobility. I think I'd already mentioned that 20% of our trips are now coming from sparser markets, and those are growing even faster than the urban core. Having said all that, I think the way to maybe to capture all this is once these markets hit sort of the full investment profile and they're running well, margins are very much in line with what we see in our other markets, and the rate at which we're investing is where we're launching hundreds of new cities in 2025. So there's plenty of room for us to run here. Obviously, there's an investment period before they achieve those more continuity level margin profiles, but that's all part of the growth opportunities that we see in front of us.

Great. Operator, we'll take a last question, please.

And your last question comes from the line of Nikhil Devnani with Bernstein. Please go ahead.

Hi, thanks for taking my questions. I have two on mobility, please. First, how should we think about the slope of deceleration and mobility growth bookings over the next year? Q1 stepped down by several points, and maybe that's just pricing and mix given the trip growth comments, but how do we get comfortable with mobility bookings not decelerating more aggressively here in the quarters to come? And then separately, a follow-up on the less dense markets. Do you think the frequency opportunity in these markets is the same as your larger cities? I would imagine there's far more car ownership and some reliability differences. So how do you think about the opportunity set on a frequency basis relative to your core urban centers? Thank you.

Thanks, Mikhail. I'll start and then hand off to Dara. I think if you go back to the algorithm, it is bookings equals trips times our average price. And if you look at the strong growth that we've been putting up over the last several quarters, those have all been built on top of a 19% year-over-year trip growth for the last three quarters. And our indication is that Q2 is going to be in a similar vein. The contributor to that to those trip growth continues to be heavily led by audience growth and so that narrowing of the delta between trips and gross bookings is coming from, as I mentioned, a little bit of mix because we saw higher international mix and the favorable versus expected delta on insurance costs. So we would sort of, I guess, softly let you think about balance of year. Gross bookings, you shouldn't be looking for a deceleration. You should be looking for that trip growth to continue to be led heavily by audience growth. And then we'll have to see where the pricing opportunities continue to be provided by insurance.

I just add in terms of mobility trip growth as well, is that the base trip growth, the core trip growth, is supercharged by the growth in less dense areas as well. And some of the growth bets that we've had, you know, in terms of lower cost products, two wheelers and three wheelers are growing incredibly quickly. Our taxi business continues to grow. you know we have the we're not even close to the majority of taxis uh in the world and as we add more taxi supply trip growth continues to grow and kind of extends the runway of our growth there and then of course shared you know uh rides both in terms of high capacity vehicles that bring the price envelope down um and or uh x share are products that essentially allow you know single driver to serve multiple riders as well. So we've got a business that continues to have a lot of growth runway. We're expanding into new markets, both geographically, but into less dense markets. And there's a whole portfolio of newer products that continue to grow faster than the core, so to speak, that have substantial runways ahead of them. In terms of frequency in the less dense areas you know the the our less dense um initiative really started with delivery uh and what we're seeing is that in in those markets you know you actually typically have families ordering etc and the frequency that we see in delivery uh continues to grow in both dense markets and less dense markets so it's unclear as to whether expansion into less dense markets uh would hurt frequency on the delivery side it certainly frequency continues to increase in delivery so we're very happy uh as it as it relates to those results on mobility i do think that you're right people will have car ownership will be higher in suburbs etc so i would expect frequency and mobility as we extend into these lower depths uh less dense areas to uh to be a headwind, I do think that price will be a tailwind, especially as it relates to reserve. In some of these markets, people kind of use reserve in order to drive reliability in the suburbs. About 40% of reserve trips are now not related to travel as well. So it's becoming kind of an everyday habit going out to dinner. And I do think that the concentration of reserve in these less-dense markets is going to be higher than in urban markets as people are willing to pay a premium for higher reliability in these less-dense markets. So I do think frequency will be lower, but I think pricing and margins as it relates to product mix will be higher.

Thank you both.

All right. I think that's it, operator, for the call. Thank you, everyone, for joining us this quarter, and a huge thank you to the Uber team as well as our partners. None of this would be possible without the hard work of the team. So thank you to the team, and we'll see you next quarter, and hopefully this will be the start of a strong year for the company.

This concludes today's conference call. Thank you for joining. You may now disconnect.