🚦 Uber's Big Autonomy Plan
🚦 Uber's Big Autonomy Plan
And investments in Didi & Grab visualized
Welcome to the Premium edition of How They Make Money.
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In case you missed it:
Uber turned profitable a year ago, but the business is (still) misunderstood.
CEO Dara Khosrowshahi recently explained:
“We believe that our ability to grow faster than the category while increasing margins reflects the quality of our execution and speed of our innovation, as well as the compounding power of our global platform.”
The “go anywhere or get anything” app has gained enough scale to generate significant cash flow. Now, Uber is transitioning from its “self-funding” to its “operating leverage” phase.
Trips on autonomous vehicles grew 6X and could play a critical role moving forward. But how does Uber’s long-term vision differ from that of Tesla or Waymo?
We'll also dive into Uber's equity portfolio, including Didi and Grab, and visualize how these companies make money.
Today at a glance:
Uber Q2 FY24.
Autonomy & the hybrid network.
Key quotes from the earnings call.
Uber’s investments: Didi & Grab visualized.
Reminder on Uber’s lexicon:
🙋♀️ MAPC (Monthly Active Platform Consumers): End-users completing a ride or delivery (called a "trip") during the month.
💵 Gross Bookings: Total dollar value consumers spend on Uber apps (excluding tips). It illustrates Uber’s scale.
There are three main segments:
🚗 Mobility: Ridesharing (~51% of gross bookings).
🛵 Delivery: Pickup or delivery of food, grocery, and more (~45%).
🚚 Freight: Logistics, connecting carriers with shippers (~3%).
Take rate: Percentage of gross bookings Uber keeps to facilitate the connection between consumers and drivers/couriers.
Revenue: Uber's take rate multiplied by gross bookings. Revenue is already net of driver and merchant earnings, and the take rate can fluctuate based on incentives (for drivers) or discounts (for consumers).
Adjusted EBITDA: Uber's operating income excluding depreciation, amortization, and stock-based compensation. Management shares adjusted EBITDA as a percentage of gross bookings to showcase operational efficiency over time. It turned positive in 2022 and reached a record 2.9% in 2023.
Let’s look at the most recent quarter.