Welcome back to Fast Market on the Schwab Network. I'm Diane King Hall alongside Kevin Hinks over at the Sibo. Time now for our cash tag segment.For that, we want to bring in our next guest and that is Landon Swan, co-founder of Likefolio, taking a look at Uber today. All right, Landon, Uber has been an outperformer compared to the S&P 500 year to date. So, the question is, when you look across your data, is the green light still happening.>> I love it. The green light. Yeah, you know, it's a good, you know ...

Core Viewpoint - The collaboration between WeRide and Uber, along with the Dubai Roads and Transport Authority (RTA), marks the official launch of Robotaxi services in Dubai through the Uber App [1] Group 1 - WeRide and Uber have partnered to introduce Robotaxi services in Dubai [1] - The service is officially operational as of December 12 [1] - The initiative is supported by the Dubai Roads and Transport Authority (RTA) [1]

Core Insights - Uber Technologies Inc. is set to report its third-quarter 2025 earnings, with investors keenly observing if the company can meet its ambitious financial targets [1] - The company is projected to achieve Gross Bookings between $48.25 billion and $49.25 billion, and Adjusted EBITDA between $2.19 billion and $2.29 billion, indicating significant growth expectations [2] - Prominent investor Bill Ackman views Uber as "significantly undervalued" and anticipates over 30% annual earnings per share growth in the medium term [3] Financial Performance - The third-quarter guidance follows a record-breaking second quarter, where Uber reached all-time highs with 180 million monthly active consumers [6] - The second quarter also featured a new $20 billion share repurchase authorization, reflecting management's confidence in future cash flow [7] - Year-to-date, Uber's stock has risen by 57.86%, closing at $99.72 per share, with a 36.14% increase over the year [8] Strategic Focus - Analysts are paying close attention to Uber's "super app" strategy and its long-term positioning in the autonomous vehicle (AV) market [4] - The addition of services like groceries and delivery is seen as a way to enhance user engagement and frequency of use [5] - Uber is expected to be a leading player in the emerging "robo taxi wars," leveraging its platform strategy as a key advantage [6]

Core Insights - Artificial intelligence (AI) is increasingly becoming integral to various industries, enhancing efficiency and customer experience, while also raising concerns among workers about potential job displacement [1] - Uber is launching a program called Digital Tasks, allowing drivers to complete tasks during downtime to earn money, which involves training AI systems [2][3] Group 1: Digital Tasks Program - Uber's Digital Tasks program is designed for drivers to perform tasks via the Uber App, such as voice recordings and document submissions, to earn additional income [2][3] - The program is currently being tested in India, with plans for a pilot launch in the U.S. for select drivers and couriers who opt in [4] - Drivers can choose tasks based on expected time and earnings, receiving payment within 24 hours after task completion [5] Group 2: Workforce Implications - There is a significant concern among workers regarding AI's impact on employment, with a Pew Research Center survey indicating that 52% of U.S. workers are worried about AI in the workplace [6] - The current labor market is facing challenges, with 911,000 fewer jobs added than expected over the past year, and an unemployment rate of 4.3%, the highest in nearly four years [7]

Core Insights - Uber is launching a pilot program that allows drivers to earn money through small online tasks when they are not engaged in ride-hailing or food delivery services [2][4] - The initiative is part of Uber's efforts to enhance driver experience and feedback, having conducted extensive sessions to gather input from team members [3] Group 1: New Initiatives - The pilot program will enable drivers to complete tasks such as uploading photos for AI training, with similar tasks already being tested in India [2][4] - Another task example includes recording voices in different languages or accents, with payment varying based on task complexity and time [4] - The work resembles offerings from platforms like Amazon's Mechanical Turk and Upwork, although Uber does not disclose specific client names or project details [5] Group 2: Driver Features - Uber has officially rolled out a women rider preference feature, allowing women drivers to be paired with women riders, which has seen significant usage globally [6] - All drivers can now set a minimum rider rating preference to avoid low-rated passengers, with the ability to adjust this setting based on the time of day [7] - A delayed ride guarantee has been introduced, ensuring higher payouts for rides that exceed estimated times by more than five minutes [7][8]

Core Viewpoint - Bill Ackman, a prominent hedge fund manager, has made a significant investment in Uber Technologies, holding 21% of his $13.7 billion hedge fund in the company, indicating strong confidence in its growth potential [1][2]. Company Overview - Uber operates as a marketplace connecting demand (riders and consumers) with supply (drivers and restaurants), creating a valuable network effect that enhances its platform over time [3]. - The company's competitive position is robust, as even major restaurant chains like McDonald's and Taco Bell choose to partner with Uber, reflecting its strong brand reputation [4]. Financial Performance - Uber has transitioned into a profitable entity, generating free cash flow under CEO Dara Khosrowshahi's leadership, attributed to improved operational efficiency and a scalable business model [5]. - In Q2, Uber reported an operating income of $1.5 billion, marking an 82% year-over-year increase, a significant turnaround from losses in the same quarter of 2022 [6]. Future Outlook - Management's confidence in Uber's future was highlighted during the 2024 investor day, forecasting adjusted EBITDA compound annual growth rates in the high 30s to 40% from 2024 to 2027, aligning with Pershing Square's investment thesis [7]. - Revenue growth is crucial for profit gains, with Uber's revenue increasing by 16% in the first half of 2025 compared to the same period in 2024, supported by a growing customer base of 180 million monthly active users [8]. Stock Valuation - Despite a 57% increase in Uber's stock price in 2025, the shares are still considered reasonably priced, with a forward price-to-earnings ratio of 23.2, comparable to the S&P 500 index [9][10]. - The current valuation suggests that investing in Uber shares remains a sound decision, focusing on future growth potential rather than past price movements [10].

Group 1 - Uber achieved record highs in user numbers and usage frequency in Q2 FY25, with nearly 30 billion consumer visits to the app over the past 12 months, and a strong 18% growth in trip volume and total bookings [1] - Adjusted EBITDA and free cash flow reached historical highs, indicating robust financial performance [1] - The company is optimistic about increasing the proportion of consumers active in both Mobility and Delivery services, currently less than one-fifth [1] Group 2 - The company expects strong performance to continue into Q3, with total bookings projected to grow by 17% to 21% and adjusted EBITDA growth in the low to mid-thirty percentage range [2] - User growth rate remains healthy at 15%, with a quarterly increase of 10 million in core platform users and 6 million in Uber One members [4] Group 3 - The company is focusing on cross-platform promotional strategies, finding that users who engage in both Mobility and Delivery services have a 35% higher retention rate and generate three times the total bookings and profits compared to single-service users [3] - Uber One membership has reached 36 million, with members spending three times more than regular users, highlighting the importance of this program [3][6] Group 4 - The company is expanding its autonomous vehicle (AV) operations, partnering with Waymo and WeRide, and launching exclusive services in Atlanta [1][7] - The deployment of AVs is still in early stages, but initial results show that Waymo vehicles are performing well, completing more trips daily than 99% of human drivers [6][8] Group 5 - The company is committed to returning capital to shareholders, with a $20 billion stock buyback authorization announced, representing about 12% of its market value [10] - The company plans to use approximately 50% of its free cash flow for buybacks, indicating a long-term strategy to reduce share count [10] Group 6 - The company is exploring partnerships with OEMs for AV development, believing that it is well-positioned to secure collaborations due to its strong demand and balance sheet [8][12] - The company is also focused on externalizing its technology capabilities, particularly in advertising and AV data collection, which could enhance market entry for AVs [13]

New Feature Announcement - Uber is launching a new feature allowing women riders to request female drivers [1] - Women drivers can also set a preference to drive other women [1] - The new feature will pilot in the US next month [1] Company Goal - Uber aims to provide women with more choice, control, and comfort [1] - Uber acknowledges that honoring all requests is not guaranteed [1]

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: North America Internet - **Companies Highlighted**: META, PINS, DASH, UBER, CVNA, GOOGL, AMZN, Etsy, Temu, IAC, Zillow, Carvana, DoorDash, Uber, Airbnb, Expedia Core Insights and Arguments 1. **Positive Traffic Trends**: META, DASH, UBER, and CVNA show positive trends in website and app traffic, while trends for Online Travel, eCommerce, and SMB Servicers are mixed [1][2] 2. **META's Performance**: META's U.S. core apps MAUs increased by 2.3% year-over-year (Y/Y), with Instagram's minutes per daily active user (DAU) rising by 15% Y/Y to approximately 53 minutes [1][4] 3. **GOOGL's Search Share**: GOOGL's global search share declined by 10 basis points month-over-month (M/M) to 89.5%, with a year-over-year decline of 160 basis points [1][4] 4. **eCommerce Trends**: eCommerce web traffic remains soft, with notable declines for Temu's U.S. MAUs down 46% Y/Y and downloads down 84% Y/Y, while Etsy's U.S. MAUs grew by 14% Y/Y [1][4] 5. **DASH and UBER Growth**: DASH's U.S. MAUs grew by 20% Y/Y, and UBER's global MAUs increased by 9% Y/Y [1][4] 6. **Streaming Trends**: Streaming now accounts for 46% of TV viewing time, up from 42% for linear TV, with YouTube leading in time spent [5][6] 7. **ChatGPT Dominance**: ChatGPT remains the most downloaded app in the U.S. for six consecutive months, despite a 1% M/M decline in downloads [4][9] 8. **Mixed eCommerce App Trends**: While Amazon's global app MAUs grew by 8% Y/Y, Temu's U.S. app MAUs declined by 46% Y/Y [6][7] 9. **Retailer Performance**: Walmart's U.S. eCommerce sales growth accelerated to 21% Y/Y, while Target's digital comp sales grew by 4.7% Y/Y [6][7] 10. **Online Travel Trends**: Mixed trends in online travel, with Booking.com's traffic down 2% Y/Y, while Expedia's U.S. traffic grew by 3% Y/Y [6][7] 11. **SMB Servicers**: Traffic trends for SMB servicers were mostly softer, with GoDaddy's U.S. traffic growing by 4% Y/Y in June [6][7] 12. **Online Real Estate**: Zillow's U.S. web traffic declined by 4% Y/Y in June, but its app MAU growth increased by 7% Y/Y [6][7] 13. **Online Autos**: Carvana's U.S. web traffic rebounded to +11% Y/Y in June, while ACV Auctions' traffic accelerated to +48% Y/Y [6][7] Additional Important Insights - **App Download Rankings**: META accounted for 19% of the top 25 app downloads in June, with four of its apps in the top 25 [4][9] - **Digital Advertising Trends**: Social media time spent in the U.S. increased by 3% Y/Y, with Meta's core apps leading the growth [4][10] - **GenAI App Usage**: ChatGPT's web unique visitors increased by 64% Y/Y, while Google's Gemini app MAUs reached 260 million [5][6] - **Market Methodology**: The data is aggregated from SimilarWeb and Sensor Tower, providing insights into engagement trends across various platforms [7][8] This summary encapsulates the key points from the conference call, highlighting the performance of various companies and trends within the North American internet industry.

Core Viewpoint - The partnership between Baidu's Apollo and Uber marks a significant milestone in the global autonomous driving landscape, enabling Baidu to expand its Robotaxi services internationally, particularly in Asia and the Middle East, while leveraging Uber's extensive user base and operational experience [1][3][4]. Group 1: Strategic Partnership - Baidu's Robotaxi service, known as "萝卜快跑," will deploy thousands of sixth-generation autonomous vehicles through Uber's global network, aiming to provide safe and reliable autonomous transportation [3][4]. - The collaboration is seen as a strategic complement, allowing both companies to leverage their strengths: Baidu's advanced autonomous driving technology and Uber's vast operational reach [2][3][5]. Group 2: Market Positioning - The partnership signifies a shift in the competitive landscape of autonomous driving, moving from a focus on technology alone to the construction of an "ecosystem" that includes various players such as tech giants, traditional automakers, new entrants, and ride-hailing platforms [6][7]. - Baidu's Robotaxi service has already provided over 11 million rides and accumulated more than 170 million kilometers of safe driving, establishing itself as a leading player in the autonomous driving sector [4][8]. Group 3: Challenges and Solutions - The collaboration addresses key challenges in the commercialization of autonomous driving, including technology reliability, cost control, and regulatory acceptance [11][12]. - Baidu's sixth-generation vehicles utilize a multi-sensor fusion approach and advanced AI models to enhance safety and decision-making capabilities, which are crucial for navigating complex environments [11][12]. Group 4: Future Implications - The partnership may create new business models beyond Robotaxi services, potentially expanding into areas like autonomous delivery and freight, thus broadening the commercial applications of Baidu's technology [12][14]. - The collaboration is expected to accelerate the global competition in the autonomous driving market, particularly against established players like Waymo and Cruise, as it leverages Uber's existing infrastructure and market presence [8][14].