Fiercely protested ubers expansion, this on top of multiple investigations for deceiving authorities, bribery, and reports of sexual harassment. Pushed out the once untouchable c. E. O. And founder. In 2017, Dara Khosrowshahi was brought in to fix it. Hes brought in new management, to rebuild trust and reputation. Still, it hasnt been an entirely smooth ride. Sparkedashy i. P. O. Excitement but ultimately, investors were not impressed. Themhe job is to prove wrong. Yoing me today, at uber headquarters in downtown san francisco, uber c. E. O. Dara khosrowshahi. Been a long two years. Two years ago, it was announced that you would be replacing the former c. E. O. And even youve admitted you were the unlikely dark horse, even accidental choice. So two years later, did they choice, and did you make the right choice . Ha ha choicei made the right c. And i hope they made the right choice. Can never prepare yourself for a job like this. And uber is a once in a generation company. But its been a great two years for us. Theave resolved all of governance conflicts that the company had. There were many legal issues company was involved with as well. Softbank as a partner and you want softbank to be behind you. A great investor base. Weve taken the Company Public revenue, gross bookings have grown since i joined. We now have a path to profitability, i believe. So while weve had bumps on the every venture has bumps on the road, i like where we are and i especially like the position that were in now for the next years. There have been bumps on the road. Story, all the negative uber, lyft, Ridesharing Companies have been transformational. For you is, can uber be as transformation over as it has been over the last decade . I think so. Uber has done is brought transportation and this point to what we believe is a small segment of the population. Over four million driver partners all over the world, which is a huge number, unparalleled. But we want uber to be available everybody. Were going into the next step of introducing other choices withn uber. Were testing buses in cairo of, to even bring the price uber down to the next level, 1, et cetera. Can uber be so transformational and stop losing money . The prices sound very attractive, but can you create a Good Business where the rides are 1, 1. 50 . Yes. Rideshare your business, it covered our 100 million. About so the ride share business itself is earning quite profitable and we believe that profit not only are going to grow top line but we believe youre going to grow bottom line well. Then there are other businesses. Eats, autonomous, trait, et cetera. These are extraordinary opportunities that were funding. But i do believe that were going to prove to our investors we can take, on a serial bases, big parts of our turn them profitable, use those parts of our business to Fund Investments in other areas. Executione are issues. You just had your biggest 5. 2erly loss ever, billion. The stock has been trading below its i. P. O. Prices. Hiring freezes. You hired at least some of of yourat least some top hires have left. How confident are you that uber can be profitable . Very confident. I think the losses that we reported, it was a 5 billion loss from an accounting perspective. If you live in the accounting world, thats a big loss. I live in the real world. In the real world, were lower q1 and were on a good path in terms of our losses as well. Absolutely right. None of this is going to be easy. All of this is going to take from all ofecution our teams, marketing, technology, et cetera. Demanding going to be our employees to be doing even to executeess and incredibly effectively in order for us to grow the top line and well. Ttom line as so is pricing the main leaver that you pull to profitability are there other drivers . Scale. Got getting big when youve over a billion rides per quarter. Use technology to be much more efficient. Totead of now your having email a Call Center Agent or call a Call Center Agent if you ite issues, you can just do on an app. These are Technology Innovations aat allow customers to have better experience and at the same time, they bring down costs. So the combinations of growing still over 30 , technology, innovation to delight the customer and take time, and at the same then good oldfashioned efficiency, making sure that our grow ase costs dont fast as our revenue. All of those together give you a profitability. To so ubers market cap is now 50some billion. Your compensation is in part tide to that. There . Still get i believe we can. Shortterm, theres nothing that the stock price. Theres an old saying that shortterm, the stockton market a vote the stock market is a voting machine. Longterm, its a weighing machine. Am very confident that this team can execute and create a very heavy company that can never be denied . How long does it take . The next couple quarters are going to show a road map to investors but it will take years. Is on a short term gain. But i believe we can demonstrate progress. About our Revenue Growth accelerating in the second half of the year. Ours, youmpanies like dont see Revenue Growth accelerate. But i talked about it accelerating in the second half year, beyond 30 , and weve always been consistent in the bottom line will continue to develop in a positive manner. Ofwere in the midst escalating trade tensions. How exposed is uber if the company falters . Our company is much more tied into the consumer. The consumer right now in the u. S. Is very strong. Were very global company. Of our transactions actually are outside of the u. S. , so we really look at the extent that Global Growth slows down, that could be a negative for us, Global Growth slows down, were gonna have more driver partners also wanting to the platform, because we expose very, very opportunities. So i do think that the growth of the company is such that were relatively resistant any macro slowdown. Whats plan b . If were in a full blown trade war. Weve heard about investing in vietnam or brazil. Company. An asset we dont have to go out and buy cars, et cetera. Well obviously be wary and make that our driver partners can source vehicles in an economic way. Of them source vehicles through second hand. Theyll source used vehicles, so to speak. I dont think this trade war we certainly havent felt it, in very small parts of the business, where were someting bikes, theres additional expense there but were very confident of our growth over the next few trade war or no trade war. Youve asked the public to amazonbout uber like the of transportation. But amazon was an online bookstore for a very long time started doing all this other stuff. What if now isnt the right time to do this other stuff and that now is the right time to focus on the core . Well, weve been in the ride a long timeness for as well. That business is absolutely developing and its profitability developing. Were the top player in every Single Market which we compete generally were either Holding Share or taking share, so we have a core business that providers the framework for us to build multibillion dollar opportunities. Think it would be criminal if we dont take advantage of that. You are seeing more and more and companies that are building ecosystems, super apps, in thepeak, especially east, for example, in china. Right. Auve got grab trying to do super app. Ten cent. That is yes. Super apps are winning. We can be the super app of allows us ton that acquire customers at much cheaper rates than our competitors. I allows us to keep customers, because we have a deeper relationship with them. Longterm, if you can acquire customers and keep them longer, thats a winning formula. Uber eats is 20 , 30 of the business now . Yes, and growing quickly. Bookings grew over 90 on a yearend basis. Largest Global Player out there. The category and of food we believe can be as large or even larger than the categories. We love that business and we continue to invest in it. There are so many competitors that do exactly what you do in this market and other markets. Youre just sub subsidizing themeals and you dont win market share and this is just a giant, hungry money pit . Peopley on, i think could have accused the rides business as the same. With others, with lyft. It is moving towards a path of profitability. As you build these businesses, the potential is so big, there goes intozation that the marketplace in order to create efficiency. Couriers,o sign up restaurants. And theres investment thats required early on. Is there competition . Absolutely. Theres always going to be competition in big categories. We have the advantage, because hundreds of millions of consumers on the ride side that introduce toially our brand. And let them know that theres to uber than just riding. Theres eating and other areas that you can enjoy. Businesses it seems like we hear less about, like scooters, for example. The likelihood you do pull out of some of these businesses . Every business is going to execute and carry its weight, so to speak. Inre a big believer micromobility. We believe in electric bikes, scooters. And increasingly, i think the mayors of the large cities all around the world are going to want to be interested in ways of dont people around that pollute, that dont create traffic and we believe micromobility can be part of the solution. Would you curtail International Expansion in the shortterm . Every part of our business has to fight for money. And if theyre not deserving gety, theyre not going to it. So believe me, slernlly, theres internally, theres lots of competition. If one part of our business carrying its own weight, we will pull back. We pulled back out of china and turned what was a 2 billion investment in cash into what can a 10 billion business in china as well. Tend, were looking to build a business. We want to build a business the alignment with our society, et cetera. But if something is not working, we belief weve demonstrated the financial discipline to make the right call at the right time. Every management has their faults. Ive got my faults but the fact a Great Company and now theyve handed it to me. And ive got to take that great evenny and make it greater. When we last visited, there was a driver protest outside. Democratic president ial was oute Pete Buttigieg there. He said, gig is another word for jobs. Worker andyoure a you ought to be protected as a worker. There is support for legislation companies likee uber that rely on contract drivers and delivery people, to make them fulltime. Why shouldnt they be fulltime . Because they dont want to be fulltime. Do. Ome listen, some do. More than half our drivers in driver. , for example, less than 10 hours with us a week. And will be, right now right now california has a historic opportunity. Were at the table. We are having these discussions. We want to get to a solution. Minimum aning 21 hour when youre driving on a platform. Were offering benefits and offering a voice as far as what how youre going to be treated going forward. 21 an hour, compared to 12 an minimum wage. This is real money. These are real rights. Thatou get the flexibility every single uber driver, courier wants, because they can when theythe market want to or out. This is a historic opportunity thei think, revolutionize gig economy. And i dont think gig is a type of work. Tosay theres only one way work and Everyone Needs to be fulltime, et cetera, i dont think thats correct, because it flexibility. And flexibility is absolutely something that all of our drivers prize. And can you give them flexibility and give drivers and riders safety at the same time . The legislatures, you ofw, works in the interest making something happen, absolutely. And you know that were making significant investments in safety as far as the safety center, tracking your ride, et cetera. And we believe that we are the leader in safety as far as in thertation goes world. And well continue to invest very aggressively there. Morere going to talk about the future. But before we go there, i want to talk more about the past. Took over had some toxic cultural issues. Police payoff to officers, violent sexual assaults, even murder on the platform. Drivers. I and a Management Team that turned a blind eye to much of it growth at all costs. Socalled brilliant jerks, if you will. Some people who say that leadership was bolder, brasher, bigger thinking, maybe better. How do you respond to that . I think time will tell. I think that you need different management for different times in the development of a company. Management every management has their faults. Ive got my faults. Has theirgement team faults. But the fact is, they built a Great Company. It to me. E handed ive got to take that Great Company and make it even greater. Think im up to the job. While they made their mistakes, a great is, they built band that has weakness and has incredible strengths. My job to take it to the next level. The guy that ran the trucking business that uber bought was charged with dealing technology google, dealing trade scetsz. What do you secrets. What do you make of those charges . Wasnt here when we brought anthony on board. We what i do know is that went to incredible depths to informationat any that anthony might have acquired from google, and it sure looked overhe did, didnt make it to our company. That was our responsibility and i think we are incredibly diligent in making sure that we thatnot guilty of anything could be nefarious, one way or the other. We think when you build, youve way. O build the right anthony is an incredibly talented person. It didnt work out. Rightdo think we did the thing within these walls. Now, the person who was here acquisitionded that which might cost uber 100 board. Is still on the travis. I asked you this on i. P. O. Day. I feel like i have to ask it again. You question traviss position on the board . I think that, you know, i am going to live in the here and now. Travis has an incredible amount of historical knowledge about the company. Hes incredibly bright. Our other board members. And i use him at the board. A very strong advisor. And his background in the company is incredibly useful and think hes supportive. Ultimately now, were a public the shareholders are going to get to pick their own board and that governance process will take care of itself forward. So you talk to him often . I talk to him usually during aard meetings and once in while, offline, absolutely. But hes on the board for now . He is. For now andboard hes going to be on the board tomorrow. Fastforward, 10, 15 years from now. Autonomous is going to be a huge around. How people get it will be cheaper, safer. We want to invest now to make that happen. Lets talk about the future then. To those who say that uber is a sharing and food delivery company, what is ubers next big idea . That the ideas that we have right now in this ideas. G are plenty big weve got ride sharing, food delivery, micromobility, autonomous. Weve got freight, rev leuzing revolutionizing how truckers move around and how all overship product the word. Elevate as well. Enormous number of big ideas. Execution time. Where do you think most of is technological innovation happening . It is happening all over. Were a combination of the physical. D the and the two coming together in unique ways. We have very interesting, for example, Machine Learning algorithms that are looking at demand, live supply and demand in a city, what riders are looking for, and where theyre located. And then giving our drivers go inines as to where to order to meet that demand. This matching of supply and a dynamic way and pricing that we have is something that is unique. To innovate there. And then we innovate in very, very different spots such as to how we can bring together different modes of transportation and tie them driving, walking, helicopter, for example, now, to j. F. K. Youre in charge of not just visualizing the future of transportation but trying to get there. And create that future. When you look into the future, oft is the future transportation look like . We think we can bring it together. Have thatwe can singular app where every morning when you wake up, any way that get from point a to point b, we can give you the information that is relevant to with live pricing, inventory, et cetera. We now have mass transit in the app. Were going to tell you, mass transit you can take, subway, an uber, pool. If its a long enough trip, you can take an elevate as well. Uniquely positioned as a company to have all that information together and we can thing fore transportation, the same thing for local commerce. And with eats restaurants, only the beginning, and we can do the same thing with logistics. To other company in the world is positioned to solve local transportation, local commerce and i think were in a spearhead position to do so. Where is uber in five years, years . So much innovation, so much change going on, that id have a predicting for you whats going to happen in the next year. But i do think, what you will increasing going to multimodal modes of transportation. We are going to open up our marketplace to thirdparty transportation providers, because were not going to do it ourselves. I think were going to be much deeper partners with the cities in which we operate. Bring demand to Public Transit as well. Were gonna have a much better enterprise solution as well, both in terms of businesses and health. And what you will see with eats moving beyond the category of just restaurants, although thats a very, very big other categories of commerce as well. Its gonna be a pretty exciting year not just for the next or five years but for the next 10 years here, and its really up to the teams here. Job to bring together the talent, who can help me envision that 10year future. The future of profitability, does profitability depend on selfdriving car technology, the advent of selfdriving car those two, or are things separate . I think we can get to beforebility selfdriving, for example, trip. Becomes the majority of if you look forward and if you want to bring safety on the because these it, number of people who die in accidents, theres just no reason to have that many people hurt. Most accidents are caused by human error. And we can avoid that. That with computers and technology and at the same time, we can take the cost per significantly. Y fastforward 10, 15 years from now. Hugeomous is going to be a part of how people get around. It reason cheaper