PresentationEric SheridanMD & US Internet Analyst Okay. I think in order to keep us on track, we're going to get started with our next fireside chat. It's always my pleasure to host Dara Khosrowshahi, he's the CEO of Uber Technologies. Dara, thank you so much for being part of Communacopia Technology again. ...

Uber (NYSE:UBER) 2025 Conference September 08, 2025 01:10 PM ET Company ParticipantsDara Khosrowshahi - CEO & Board MemberNoneOkay. I think in order to keep us on track, we're going to get started with our next fireside chat. It's always my pleasure to host Dara Khajra Shahi, the CEO of Uber Technologies. Dara, thank you so much for being part of Communicorpio Technology again.Dara KhosrowshahiHappy to be here. Thank you.NoneSo look, to lay the foundation for our discussion, why don't you talk a little bit ...

Core Insights - Uber Technologies (UBER) will join the S&P 100 index on September 22, replacing Charter Communications (CHTR) [1][2][9] - UBER's market capitalization is $189.8 billion, significantly higher than Charter Communications' $35.8 billion [3][9] Financial Health - UBER exited Q2 2025 with cash and cash equivalents of $8.6 billion and no near-term debts, indicating strong financial health [4][9] - The current ratio for UBER is 1.11, reflecting adequate liquidity [4][9] Market Position and Expansion - UBER dominates the North American ride-sharing market and has expanded its retail reach through partnerships with Dollar Tree and Dollar General, adding nearly 23,000 stores to the Uber Eats platform [5][6][9] - The collaboration with Dollar Tree and Dollar General enhances UBER's retail delivery capabilities, allowing customers to order food and essentials through the Uber Eats app [5][6] Share Performance and Valuation - UBER's shares have gained in double digits this year, outperforming its industry despite tariff-related uncertainties [7] - The company trades at a forward 12-month price-to-sales ratio of 3.33X, which is considered inexpensive compared to its industry [10] Earnings Estimates - The Zacks Consensus Estimate for full-year 2025 and 2026 has remained stable over the past week [11]

Core Insights - Uber and Momenta plan to test robotaxis in Munich, Germany starting in 2026, marking the first continental European city for this initiative [1][6] - The partnership was first announced in May 2025, with initial operations involving human safety operators onboard [1][2] - Momenta is a significant player in China's autonomous vehicle market, having tested self-driving cars since 2018 [2] Company Developments - Momenta has been involved in the autonomous vehicle sector since its founding in 2016 and is recognized for its competitive position in China [2] - Uber's entry into the European AV market puts it in competition with other ride-hailing companies, such as Lyft, which has partnered with Baidu for robotaxi deployment [2] - Uber has established partnerships with 20 global AV companies, generating an annualized rate of 1.5 million mobility and delivery trips [3] Market Expansion - Uber's international strategy includes partnerships with Chinese AV startups like WeRide and Pony.ai for robotaxi services in the Middle East [4] - Current AV services are offered in Abu Dhabi and Riyadh, with plans to expand to Dubai [4] - Uber and Wayve are also planning public road trials of Level 4 AVs in London [4] Technical and Regulatory Aspects - Munich was chosen for its engineering heritage and strong automotive ecosystem, with Uber's CEO highlighting Germany's historical significance in the automotive industry [6] - Momenta's robotaxi deployment in Europe will require certification from German regulators, including safety standards and geo-fenced area approvals [7][8] - Momenta is also developing advanced driver assistance systems (ADAS) in collaboration with major German automakers, with ADAS already installed on 400,000 vehicles [9]

Core Viewpoint - The simultaneous acceleration of capital and regulation in the U.S. autonomous driving sector is paving the way for the commercialization of Robotaxi services, with significant investments and regulatory updates occurring concurrently [3][4][6]. Group 1: Investment and Project Details - Lucid announced a $300 million strategic investment from Uber, aimed at supporting the next-generation Robotaxi project in collaboration with Nuro, with plans to produce vehicles at its Arizona factory and launch in a major U.S. city by 2026 [3][9]. - The project aims to deploy over 20,000 vehicles within six years, focusing on integrating Nuro's L4 Driver system into Lucid's vehicles [9][10]. - The investment creates a supply-side triangle where Uber provides traffic and scheduling, Lucid offers long-range capabilities, and Nuro contributes its experience in autonomous delivery systems [9][10]. Group 2: Regulatory Changes - The U.S. Department of Transportation and NHTSA plan to propose three key updates to the Federal Motor Vehicle Safety Standards (FMVSS) in Spring 2026, aimed at modernizing regulations for vehicles without manual controls [4][6]. - Proposed updates include loosening requirements for physical gear shifters, adapting standards for defrosting and wipers for vehicles without traditional designs, and removing assumptions about driver seating and control areas [6][7]. - These regulatory changes are intended to facilitate the design and operation of Robotaxis, allowing manufacturers to innovate without being forced to include manual controls [7][14]. Group 3: Market Implications - The regulatory updates and capital investments are expected to create a clearer path for participants in the Robotaxi market, including Uber, Lucid, and Nuro, as they prepare for a competitive landscape by 2026 [14][15]. - The collaboration between Uber and Lucid complements Uber's existing partnerships, such as with Waymo, enhancing its autonomous vehicle offerings [10][14]. - The success of the Robotaxi initiative will depend on the ability to train vehicles in complex scenarios, with 2026 being a critical year for both opportunities and potential challenges in safety and economic viability [15].

Core Insights - Uber Technologies' stock has increased nearly 30% over the past year, outperforming the S&P 500, which rose less than 20% [1] - The company has gained more customers, streamlined its operations, and expanded its subscription-based platform [1] Business Performance - From 2020 to 2024, Uber's monthly active platform consumers (MAPCs) grew from 93 million to 171 million, annual trips increased from 5 billion to 11.3 billion, gross bookings rose from $57.9 billion to $162.8 billion, and annual revenue surged from $11.1 billion to $44 billion [4] - Uber's U.S. market share increased from 71% in October 2020 to 76% in March 2024, while Lyft's market share decreased from 29% to 24% [5] Growth Metrics - Year-over-year growth rates for monthly active platform consumers are projected at 14% for Q2 2025, with trips growth at 18% for Q1 to Q2 2025 [6] - Gross bookings growth is expected to be 17% for Q2 2025, while revenue growth is anticipated at 18% for the same period [7] Subscription and Service Expansion - The Uber One subscription platform saw a 60% increase in subscribers, reaching 30 million by the end of 2024 and 36 million by Q2 2025 [7] - Subscribers reportedly spend three times more than non-subscribers [7] - Uber is diversifying its services with grocery and retail deliveries, cost-effective options for riders, and new enterprise and healthcare services [8] Financial Performance - Adjusted EBITDA became positive in 2022 and nearly quadrupled over the next two years, with GAAP profitability achieved in 2023 [9] - Profits increased significantly due to divesting unprofitable businesses, workforce reduction, and streamlining operations [10] Future Projections - Analysts forecast revenue growth of 17% and adjusted EBITDA growth of 34% for 2025 [11] - For 2026, revenue and adjusted EBITDA are expected to rise by 15% and 27%, respectively, with potential stock price increase of 30% over the next year [12]

Group 1: Bill Ackman's Investment Strategy - Bill Ackman has a significant portion of his hedge fund, Pershing Square, invested in Amazon and Uber, with ambitions to create a "modern-day Berkshire Hathaway" through Howard Hughes [2][3] - Ackman's hedge fund has outperformed the S&P 500 over the last five years, indicating a strong investment track record [2] Group 2: Amazon's Business Overview - Amazon constitutes 9% of Ackman's portfolio and operates in three major industries: e-commerce, advertising, and cloud computing [5][9] - The company is the largest e-commerce marketplace in North America and Western Europe, the largest retail advertiser globally, and the leading cloud computing platform through Amazon Web Services (AWS) [5][7] Group 3: Amazon's Financial Performance - Amazon reported Q2 revenue of $167 billion, a 13% increase, with operating margin widening by 1.5 percentage points and GAAP net income rising 33% to $1.68 per diluted share [9][10] - Wall Street estimates that Amazon's earnings will grow at an annual rate of 17% over the next three years, with a current valuation of 35 times earnings [10] Group 4: Uber's Business Overview - Uber represents 21% of Ackman's portfolio and is a leader in mobility and food delivery services, operating the largest ride-sharing platform and the second-largest restaurant food delivery platform in the U.S. [11] - The company has a significant presence in multiple countries, benefiting from scale and network effects [11][15] Group 5: Uber's Financial Performance - Uber's Q2 revenue increased by 18% to $12.7 billion, with GAAP net income rising 34% to $0.63 per diluted share [11] - Wall Street projects Uber's earnings to grow at an annual rate of 22% over the next three years, with a current valuation of 16 times earnings [14] Group 6: Future Opportunities for Uber - Uber is well-positioned to capitalize on the autonomous vehicle market, with 20 AV partners and ongoing deployments in multiple markets [12][13] - The company can cross-promote its services through a single mobile app, enhancing user engagement and data utilization [15]

Core Viewpoint - S&P Dow Jones Indices will implement changes to the S&P 100, S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective September 22, 2025, to enhance market capitalization representation [1][2]. Changes Summary - **S&P 100 Changes**: - Addition of Uber Technologies (Ticker: UBER) in the Industrials sector - Deletion of Charter Communications (Ticker: CHTR) from the index [2][3]. - **S&P 500 Changes**: - Additions: - AppLovin (Ticker: APP) in the Information Technology sector - Robinhood Markets (Ticker: HOOD) in the Financials sector - Emcor Group (Ticker: EME) in the Industrials sector - Deletions: - MarketAxess Holdings (Ticker: MKTX) in the Financials sector - Caesars Entertainment (Ticker: CZR) in the Consumer Discretionary sector - Enphase Energy (Ticker: ENPH) in the Information Technology sector [2][3]. - **S&P MidCap 400 Changes**: - Additions: - Nutanix (Ticker: NTNX) in the Information Technology sector - TransUnion (Ticker: TRU) in the Industrials sector - MP Materials (Ticker: MP) in the Materials sector - Kratos Defense & Security Solutions (Ticker: KTOS) in the Industrials sector - Deletions: - Emcor Group (Ticker: EME) in the Industrials sector - The Wendy's Company (Ticker: WEN) in the Consumer Discretionary sector - Acadia Healthcare Company (Ticker: ACHC) in the Health Care sector - ManpowerGroup (Ticker: MAN) in the Industrials sector [3][4]. - **S&P SmallCap 600 Changes**: - Additions: - MarketAxess Holdings (Ticker: MKTX) in the Financials sector - Caesars Entertainment (Ticker: CZR) in the Consumer Discretionary sector - Enphase Energy (Ticker: ENPH) in the Information Technology sector - The Wendy's Company (Ticker: WEN) in the Consumer Discretionary sector - Acadia Healthcare Company (Ticker: ACHC) in the Health Care sector - Noble Corporation (Ticker: NE) in the Energy sector - Q2 Holdings (Ticker: QTWO) in the Information Technology sector - Waystar Holding (Ticker: WAY) in the Health Care sector - Hecla Mining (Ticker: HL) in the Materials sector - Deletions: - MP Materials (Ticker: MP) in the Materials sector - Kratos Defense & Security Solutions (Ticker: KTOS) in the Industrials sector - ProPetro Holding (Ticker: PUMP) in the Energy sector - Xerox Holdings (Ticker: XRX) in the Information Technology sector - TechTarget (Ticker: TTGT) in the Communication Services sector - Mesa Laboratories (Ticker: MLAB) in the Health Care sector - Owens & Minor (Ticker: OMI) in the Health Care sector - B&G Foods (Ticker: BGS) in the Consumer Staples sector - Jack in the Box (Ticker: JACK) in the Consumer Discretionary sector - Simulations Plus (Ticker: SLP) in the Health Care sector [3][4].

Group 1 - Increasing trend of urban residents opting not to purchase cars, leading to a rise in alternative transportation methods [1] - Greater utilization of public transport options such as trains, subways, and trams alongside ridesharing services [1]

Group 1 - Chinese autonomous driving companies are accelerating their global expansion, with significant partnerships being formed with international ride-hailing platforms like Lyft and Grab [2][3] - Baidu's Apollo Go plans to launch in the UK and Germany by 2026, while WeRide is set to receive a multi-million dollar investment from Grab to deploy L4 Robotaxis in Southeast Asia [2][3] - The collaboration between Chinese technology and overseas platforms is creating a viable path for international expansion in the autonomous driving sector [2][3] Group 2 - Robotaxi services are a key application of L4 autonomous driving, with companies like WeRide and Pony.ai reporting substantial revenue growth in their Robotaxi operations [3][4] - WeRide's revenue for Q2 2024 reached 127 million yuan, a 60.8% increase year-on-year, with Robotaxi revenue soaring by 836.7% [3] - Baidu's Robotaxi service completed over 2.2 million fully autonomous orders in Q2, marking a 148% increase compared to the previous year [3] Group 3 - International partnerships with platforms like Uber, Lyft, and Grab are essential for Chinese autonomous driving companies to access large user bases and established operational networks [4][6] - The collaboration allows these companies to reduce customer acquisition and operational costs while gathering valuable data for technology optimization [6] - The strategic partnerships are expected to enhance the global commercialization of Robotaxi services, with various companies planning to expand into multiple international markets [4][5] Group 4 - The Middle East is emerging as a significant market for Chinese autonomous driving companies due to favorable road conditions and regulatory environments [7][9] - WeRide has obtained the first national license for autonomous vehicles in the UAE and is expanding its Robotaxi fleet in Abu Dhabi [9] - Pony.ai and Baidu are also establishing partnerships in the region, with plans for extensive testing and deployment of Robotaxi services [9]