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Uber (UBER) recently reported its Q3 FY22 earnings report.

Today, we’ll cover the following:

1. Uber Q3 FY22.

2. Recent business highlights.

3. Key quotes from the earnings call.

4. What to watch looking forward.

Uber offers interconnected apps to go anywhere or get anything.

The company uses a massive network to power movement from point A to point B. The business was on a positive trajectory at the end of 2019 but was upended by the global pandemic.

The platform connects:

• 🙋‍♀️ Riders with Drivers 🚗.

• 😋 Eaters with Couriers 🛵.

→ Riders/Eaters are the end users of the service.

→ Drivers/Couriers are earning a living on the platform.

Before we start, let’s discuss how Uber makes money:

• Gross Bookings: The total dollar value spent by end users on Uber apps (excluding tips). It gives a sense of the scale of the platform.

• Uber’s take rate is a percentage % of Gross Bookings for facilitating the connection between end users and Drivers/Couriers.

• Revenue is based on Uber’s take rate multiplied by Gross Bookings.

• There are three main revenue segments:

  • 🚗 Mobility: Ridesharing.

    • ~47% of overall gross bookings.

    • ~28% take rate.

  • 🛵 Delivery: Pick-up or delivery of food, grocery, and more.

    • ~47% of overall gross bookings.

    • ~20% take rate.

  • 🚚 Freight: Logistics, connecting carriers with shippers

    • ~6% of overall gross bookings.

    • 100% take rate.

• Uber’s revenue is already net of Driver and Merchant earnings. The take rate can fluctuate based on incentives or discounts over time.

• Costs and expenses include:

  • Cost of revenue: Insurance cost, payment processing fees, data centers and networking expenses, and some delivery costs. The company presents depreciation and amortization separately from the cost of revenue.

  • Operations and support: Employee-related costs for community support, customer relations, driver background checks, and other corporate expenses.