Uber Technologies, Inc Q1 FY2025 Earnings Call

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 speakers’ remarks, there will be a question and answer session. If you would like to ask a question during this time, press star, one on your telephone keypad. I would now like to turn the conference over to Balaji Krishnamurthy, 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 Prashanth Mahendra-Rajah. 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 the risks and uncertainties described in our most recent Form 10-K and in 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 Dara. With that, let me hand it over to Dara.

Thanks Balaji. We’re off to a strong start this year against a 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 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 in major execution mode. We launched with Waymo in Austin with around 100 cars that are all exceptionally utilized. We announced five AD partnerships with deployments that come in the U.S., Europe and the Middle East. We signed a partnership with Open Table to integrate dining, delivery and transportation for our customers and we went live with our Delta SkyMiles partnership, and we announced the acquisition of Trendyol 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. As I’ve 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. With that, let’s get some questions going.

Thank you. Operator, we’re ready.

Thank you. Your first question comes from the line of Doug Anmuth with JP Morgan. Please go ahead.

Thanks for taking the 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. 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.

Yes, absolutely. Doug, on mobility, the elasticity that we’re seeing is similar to the past - you know, usually a dollar of increase in terms of price, transactions are negatively affected. Now, there’s short-term elasticity and long-term elasticity. There’s elasticity that you see in sessions and then we think there’s longer-term elasticity, which is as you tend to 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? We’re happy with the results that we saw in terms of the pricing that we were able to deliver to consumers as we saw the insurance headwinds ease a little bit, and hopefully we’ll keep that going. There was also kind of a mix shift in terms of trips, a bit more growth internationally than the U.S., especially in the travel sector that affected overall price mix, so to speak. But so far, I’d say so good in terms of elasticity. In terms of AV in Austin, we’re very, very encouraged with what we’re seeing. Obviously Waymo has a safety track record that’s second to none. Consumers are loving the product. Opt-in rates are very, very healthy, and the ratings are healthy. The team on the ground is doing a terrific job in terms of 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. We’re seeing very high utilization of the vehicles in terms of trips per vehicle per day; as a matter of fact, the average Waymo in Austin is busier than 99% of Austin drivers, as defined by the number of trips per day per Waymo, so very, very encouraging early days. 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 expansion that we see both in the U.S. and especially outside the U.S. as well.

Thank you, Dara.

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 wanted 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 incentivizing supply and demand across both mobility and delivery, and if there were any specific geos you wanted to call out from a competitive intensity standpoint. Thank you.

Yes Eric, these markets continue to be very competitive on a global basis. In terms of mobility, we’ve got a strong competitor domestically here in Lyft. 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 Bolt in Europe and DiDi in Latin America, they’re strong competitors. They continue to focus on expansion. I think as you see by our results, we’re the number one player in the vast majority of markets in which we operate, and even in a very competitive market, our category position continues to be market leading. Then the same with 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 grocer 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. We were early to the game in terms of growing internationally organically. We’re seeing some consolidation happen, inorganic consolidation happening, and that’s to be expected in markets that are as large and as competitive as ours, so I’d 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 then 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 taking 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 the size of the fleet or an internal timeline or target when Austin Waymo, combined with Austin 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 drilling a little more into U.S. mobility, any update on how quickly U.S. mobility is growing and how the suburbs versus the more urban areas are trending? Thanks.

Sure, Brian. In Austin, our primary focus is to ensure that every day provides an excellent customer experience. We are expanding our fleet and expect to surpass 100 vehicles soon based on current trends. Our priority is to maintain high utilization of these vehicles while ensuring safety and customer satisfaction are not compromised. At this stage, our goal in Austin is not necessarily to increase the number of trips; rather, we want to ensure that each ride is exemplary. We believe that by delivering a highly reliable service with exceptional trips, reasonable pricing, and predictable ETAs, our business will grow over time, allowing us to strengthen our position in the market and attract more consumers to our platform. Currently, less than 20% of adults aged 18 and over regularly use our services, indicating significant growth potential. Our immediate focus is on daily operations to ensure we get it right while keeping the streets of Austin safe. Would you like to address the second question?

Yes Brian, it’s Prashanth. I’ll take the second part on mobility growth. 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 it’s still very heavily led by audience growth. When we look at that conversion from trip growth to gross bookings growth, we are starting to see the gap between trips and gross 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 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 this mix shift, you’ll notice that we were able to print all-time 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 margin accretion story. Then lastly, I think you asked a bit about growth in the suburbs versus the urban areas. 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.

We’ll take the next question, Operator.

Your next question comes from the line of Ross Sandler with Barclays. Please go ahead.

Great. Just a question on the delivery margin and a call-out you guys made in the prepared remarks. You said that restaurant delivery has profit margins that are modestly lower than Uber X profit margins, so that’s an interesting nugget in itself. 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 being way up there is because of advertising, just because of time in market and the usual retention cadence, etc.? Any thoughts on that?

Sure, thank you Ross - it’s Prashanth. 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% EBITDA - that’s up 70 basis points 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 just from the scale, the operational expense 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 of quarters. The item that I’d probably highlight there is that our cost per trip continues to show great improvement - that’s the benefit of the scale we have, 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’d said in Q4 of last year, grocery and retail hit breakeven for variable contribution, and Q1 it’s now starting to accrete at variable contribution levels, so that grocery and retail business has great upside and is 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 were 9%, so with that very strong top line growth, it’s a reflection of what 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 over-commit to the growth in delivery profitability. We’re looking for steady margin expansion, so we 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.

Thank you. I have two questions. First, regarding the insurance challenges, do you believe those issues are mostly resolved now? Can you discuss your perspective on ongoing measures to manage insurance costs — are these factors intrinsic to the industry, or are they improvements or adjustments that you have implemented? Then, Dara, with respect to AV partners and your comprehensive understanding of the various offerings available, Waymo is performing exceptionally well. In your opinion, who in the market is currently the closest to Waymo in terms of their capability to deliver a true AV experience at scale? Thank you.

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

Yes, 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’d tell you that, listen, in China you have AV products that are in market today, from WeRide who is a partner in Abu Dhabi and Dubai and expanding in 15 countries, Pony whom we expect to introduce in the Middle East sometime, and Baidu as well. They have essentially AVs running in Chinese cities right now, in very challenging traffic conditions and conditions generally, and then there are a lot of other players that are showing incredible promise as well. We announced a partnership with May Mobility, with VW, with Momenta as well where we expect to see an AV development deployment in Europe as well, and AV ride. 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 a number of successful companies in the space, hopefully partnering with us.

Yes, 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. 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. 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 onto 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 insights 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, etc. 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 the first quarter, a tort reform bill in Georgia is 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. We have other bills in other states, like Nevada and Texas, and continue to have some good discussions in other areas. Overall, I think that the energy that we are 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.

I want to emphasize that U.S. drivers are just as safe as drivers anywhere else in the world. The insurance costs that consumers face internationally are minimal compared to those in the U.S., making it a significant factor in the inflation that consumers are experiencing. We hope that local policymakers and the current administration share our desire to combat inflation, as this inflation is largely due to the misuse of the legal system, which is completely unnecessary. We are looking for collaboration with policymakers to reduce prices for consumers and ensure that more of the fares benefit the drivers. We believe this approach is mutually beneficial.

Thank you very much.

You’re welcome.

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

Thank you. I have a question regarding the macro environment. You mentioned the possibility of slower airport trips. Are there any effects on mobility rides, pricing, or delivery, such as lower average order values? Also, could you provide an update on the competition in the Bay Area and Los Angeles, particularly regarding Waymo's operations there? Thank you.

Yes, we're closely monitoring the macro environment. Currently, we do not observe any significant signals. Audience growth remains strong at 14%, and frequency is also stable. We are adjusting our pricing but have noted that basket sizes continue to rise, which indicates that there is no major macro uncertainty affecting us at this time. Consumers are not downgrading their restaurant choices, and although we are vigilant, we see no immediate signs of concern. The categories we operate in, such as restaurants, transportation, and grocery, typically demonstrate stability even during economic fluctuations, making us somewhat insulated from these issues. As of now, we have not detected any signals to worry about, and we hope this trend continues. You can see this reflected in our guidance, which remains steady. Regarding the competition in San Francisco and L.A., the environment is stable, and we are supportive of Mayor Lurie's initiatives to reinvigorate San Francisco, which we believe will positively impact all competitors in the region.

Great, thank you.

You’re welcome. Next question?

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

Thank you. First, I have a question for Prashanth regarding the affordability initiatives and the insurance commentary, along with your preview of the Go Get event later this month. Could you discuss the potential impact on mobility margins for the second half of this year and beyond? Then, I have a question for Dara. Could you elaborate on your perspective of the AV landscape both in the U.S. and internationally? When do you envision software-enabled AV solutions becoming a commercially viable option at scale? Thank you.

Yes Ken, I’m reluctant to guide for the second half, but I can say this, that we are committed to continually 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 business 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.

Yes, in terms of autonomous vehicles, we are witnessing significant innovation in the market that we find very exciting. Traditionally, autonomous vehicle technology relied on heuristics, using a series of if-then scenarios. However, we are now seeing companies like Waymo and others transitioning to large transformer models, which offer greater flexibility, scalability, and cost-effectiveness. These models do not need to be overly tailored to specific computing, hardware, or sensor configurations. They can be applied broadly in driving scenarios as well as with various hardware and sensor kits. This trend is positive as it separates the software stack from the hardware stack. The recent partnership announcement between Waymo and Toyota reflects the shift in the industry, where dedicated software developers are increasingly providing advanced autonomous vehicle platforms to original equipment manufacturers globally. We envision a future where all new cars sold in ten years are equipped with Level 4 or Level 5 autonomy, which would significantly enhance road safety. Additionally, our platform will enable any vehicle owner, including financial institutions, to optimize vehicle utilization, leading to lower capital costs. The direction we are taking is incredibly encouraging. There are also emerging players focusing on next-generation, end-to-end models, like Wayves and Waabi in trucking, as well as Momenta, showcasing a pure AI approach that promises rapid development and wide software applicability across driving scenarios and hardware. The level of innovation we are observing is remarkable. We are collaborating with many partners globally and have a strong perspective on the leaders in the industry, demonstrated by our recent partnerships, with five announced in the past week alone. The pace of innovation and development is exciting for us.

Thank you both.

You’re welcome.

Your next question comes from the line of Shweta Khajuria with Wolfe 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 four key areas, and affordability was one of them, so if you could please expand on that, that’d be great. Then the second is in Europe in particular, we have seen now you have a majority stake you just announced, and then DoorDash announced delivery, so you could please talk to that market - how fast is it growing, what does the competitive landscape look like there, and how do you view consolidation? Thanks a lot.

Yes, we're very focused on making delivery affordable. One of our key initiatives is our membership program, which lowers prices and eliminates delivery fees for our loyal customers. Members typically have higher retention rates and spend significantly more than non-members. Currently, we have 30 million members benefiting from billions in discounts, and membership penetration for delivery has surpassed 60%, with some markets exceeding 70%. The more members we have taking advantage of these deals, the better for our business, and this area continues to grow. Another area we're concentrating on is merchant-funded offers, where merchants can provide discounts such as buy one, get one free. These offers are beneficial for merchants as they can use the cost of food as part of the discount while maintaining their profit margins. We're witnessing an increase in the number of these offers available in the market, which helps merchants gain visibility and increase sales. We believe this is contributing to the strong growth in gross bookings for delivery, both in the U.S. and overseas. Regarding competition in Europe, we’re pleased with our progress, especially in the U.K., where we have achieved a number one position entirely through organic growth. France remains a key market for us, and we see great potential in Germany, where we launched three to four years ago and continue to strengthen our position through investment in mobility and delivery. We're optimistic about the trends we’re observing in Europe, and it's not surprising to see competitors seeking inorganic expansion there, but we prefer to grow organically. Our long-term investment in these markets is reflected in our results.

Thank you Dara, that was helpful.

You’re welcome. Next question?

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

Good morning everybody. Thank you for the questions. One on delivery and then one on mobility. First, 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 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. Dara, I was curious, any possibility of partnerships with the ChatGPTs of the world? Then I think one for Prashanth 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 urban markets. Thank you so much.

Yes, I think on delivery and large language models, we’re very, very early in terms of the development of the models and their application to consumer experiences or enterprise technology. I wouldn’t say that right now, our focus is to push volume from one merchant to the other, it’s really to focus on improving the customer experience. 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. Then we absolutely are working with the 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 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 the 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 we’ll deal with the after-effects later in terms of merchant concentration. It’s just not something we’re focused on right now. Prashanth, do you want to take the other one?

I’ll address the second question. Thank you for your inquiry, Michael. I’d like to begin with a slight clarification regarding your comment about deceleration. It might be surprising, but the majority of our top 20 cities are still experiencing double-digit growth, indicating robust performance in our core areas. However, we see the potential to extend the growth phase of our core business by investing in less populated markets. We are already observing promising trends; for instance, 20% of our trips are now coming from these less populated areas, which are outpacing growth in urban centers. Once these markets reach their full investment potential and are operating effectively, we anticipate that margins will align closely with those in our other markets. Additionally, we plan to launch hundreds of new cities in 2025, providing us ample opportunity for further growth. While there is an investment phase before these new markets reach stable margin levels, it represents an exciting growth opportunity for us moving forward.

Great. Operator, we’ll take our last question, please?

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 in mobility gross 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? 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.

Thank you, Nikhil. I’ll begin and then pass it on to Dara. If we refer back to the formula, bookings equal trips multiplied by our average price. Our strong growth in the past several quarters has been supported by a 19% year-over-year growth in trips over the last three quarters, and we anticipate that Q2 will follow a similar trend. The primary driver behind this trip growth is our audience expansion, resulting in a reduced gap between trips and gross bookings, influenced by a slight mix shift due to a higher international mix and favorable changes in insurance costs. We suggest that for the remainder of the year, you should not expect a slowdown in gross bookings; instead, anticipate continued trip growth primarily driven by audience growth, while we monitor pricing opportunities in insurance.

Nikhil, I want to mention that the growth in mobility trips is significantly influenced by increases in less densely populated areas and the performance of our lower-cost products. Our two-wheeler and three-wheeler segments are seeing rapid growth, and our taxi business is expanding as well. We still have a long way to go in terms of capturing the global taxi market, and as we increase taxi availability, trip growth will continue to rise, extending our growth potential. For shared rides, utilizing high-capacity vehicles helps reduce costs, and our product offering enables one driver to accommodate multiple riders. Our business has substantial room for growth, as we are venturing into new geographic and less dense markets, and we have a range of new products that are outpacing core products and have significant growth potential. In less dense areas, our delivery initiatives have gained traction, with families frequently placing orders. We observe an increase in delivery frequency in both dense and less dense markets, making it unclear if expanding into less dense areas will negatively impact delivery frequency. Overall, we are pleased with delivery performance. Regarding mobility, you are correct that car ownership tends to be higher in suburban areas, which may pose a challenge to mobility frequency as we penetrate these markets. Conversely, pricing will likely help, especially concerning reserve services, as many customers use reserves to ensure reliability in suburbia. Approximately 40% of reserve trips are now for routine outings, like dining out, and reserve usage is expected to be more concentrated in less dense markets because individuals are willing to pay extra for reliability there. While I anticipate lower frequency, I expect pricing and margins related to product mix to improve.

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.