UBER JPM Global TMT 2025

All right. We're going to go ahead and get started. I'm Doug Anmuth, JPMorgan's Internet analyst. We're very pleased to have with us Uber's CEO, Dara Khosrowshahi.

Uber's mission is to create opportunity through movement. Uber is a global leader in 2 secular growth industries, ridesharing and food delivery. Last year, the company generated $163 billion in gross bookings, along with nearly $7 billion of free cash flow. Dara has been CEO of Uber since 2017.

He was previously CEO of Expedia and prior to that, CFO of IAC Travel. So welcome, Dara.

Thank you for having me. Great to be here.

Absolutely. All right. Let's start high level. It's been more than a year since Uber provided its midterm targets at the 2024 Investor Day.

What's changed most in the business since then? And how do you feel the company is progressing toward those goals?

Well, I think the good news is that any time you give multiyear projections, there's some danger of things changing or things going off course one way or the other. And we're right on track. Just as a reminder for folks out there, we talked about mid- to high teens growth as it relates to gross bookings. And then obviously, margins leveraging quite nicely in terms of EBITDA growing mid-30s to 40%.

And then substantial free cash flow generation as a percentage of EBITDA, more than 90% of EBITDA we thought would be moving into free cash flow. And we are on track or ahead of essentially all of those targets. If you look at our business, we think that the growth levers continue to be huge. We're relatively under- penetrated.

Typically, in most markets, less than 15 -- less than 5% actually of the adult population in markets use us on a monthly basis. And the growth formula that we see is increasing audience, increasing frequency and then hopefully, price being neutral in terms of gross bookings growth. We don't want to pass on price unless we have to or we're just passing on costs to the consumer. If you look at last quarter, for example, audience grew 14%, very healthy and consistent with last quarter.

Frequency grew 3%. we just keep -- we keep improving the quality of service, so to speak; higher penetration of membership, which drives frequency structurally. And then again, on the pricing side, there has been some inflation in, for example, Mobility pricing over the past couple of years in the U.S. And