Uber Technologies, Inc. CEO Dara Khosrowshahi Discusses Growth Strategies and Autonomous Vehicle Developments at JPMorgan Global Technology Conference

Key Takeaways

TL;DR: Uber ($UBER) reiterates confidence in mid-term targets (mid-to-high teens GB growth, mid-30-40% EBITDA growth) driven by Delivery strength (+15% transaction growth, $1B+ ads biz), AV progress (early traction in Austin/Atlanta), and insurance cost moderation. Geographic/macro resilience, grocery/retail expansion, and disciplined capex (monetizing Aurora stake) underscore LT growth. Regulatory reforms remain key.

1. Financials & Mid-Term Targets

• On track/above 2024 Investor Day targets:
  • Gross Bookings (GB): Mid-to-high teens growth.
  • EBITDA: Mid-30% to 40% growth.
  • FCF: >90% of EBITDA conversion ($7B FCF in 2024).
• Growth drivers: Audience (+14% YoY), frequency (+3% YoY), stable pricing.
• Membership: >30M Uber One members (60% Delivery GB penetration; ~70% "best-of-breed" target).

2. Delivery: +15-18% GB growth, accelerating transaction growth

• Key drivers:
  • Membership: 60% of Delivery GB; ↑ frequency/retention.
  • Merchant-funded offers: Driving ~30% of GB with limited merchant cost.
  • Grocery & Retail: 30% penetration in some markets (vs. 18% in Eats); Instacart collab scaling ads.
• Advertising: >$1B revenue (+50% YoY), margin accretive.

3. Mobility: Pricing moderation (flat YoY in 1Q25) as insurance headwinds ease

• Insurance cost mitigation: Regulatory tailwinds (Georgia, Nevada), safer driver scoring (↑ earnings for safer drivers), route optimization (reduced left turns).
• Less-dense markets: 20% of Mobility GB, growing faster than core (↑ TAM).

4. Autonomous Vehicles (AV)

• Partnerships:
  • Waymo (Austin/Atlanta): Early utilization "better than targets", high customer repeat rates.
  • Scaling alliances with Pony.ai, WeRide, VW, May Mobility.
• Monetizing Aurora stake: Partial sale to fund AV ecosystem (fleet ops, software alliances).
• Fleet management: Dynamic dispatch system prioritizes AVs for short trips/human drivers for peak times.

5. Insurance & Regulatory