Uber reported a strong Q1 2026 with gross bookings growth of 21%, accelerating mobility margins, and delivery growth. Management expressed high confidence in continued US mobility acceleration driven by insurance cost savings, and highlighted significant strategic progress in AV partnerships, Uber One membership, and the expansion into hotel booking through the Expedia partnership. Uber's US mobility business is expected to accelerate in 2026, driven by reinvesting insurance savings into lower prices, leading to strong trip growth elasticity, particularly in California.
Buzzberg readU.S.Uber reported a strong Q1 2026 with gross bookings growth of 21%, accelerating mobility margins, and delivery growth. Management expressed high confidence in continued US mobility acceleration driven by insurance cost savings, and highlighted significant strategic progress in AV partnerships, Uber One membership, and the expansion into hotel booking through the Expedia partnership. Uber's US mobility business is expected to accelerate in 2026, driven by reinvesting insurance savings into lower prices, leading to strong trip growth elasticity, particularly in California.Read full analysisCollapse analysis
Uber reported a strong Q1 2026 with gross bookings growth of 21%, accelerating mobility margins, and delivery growth. Management expressed high confidence in continued US mobility acceleration driven by insurance cost savings, and highlighted significant strategic progress in AV partnerships, Uber One membership, and the expansion into hotel booking through the Expedia partnership. Uber's US mobility business is expected to accelerate in 2026, driven by reinvesting insurance savings into lower prices, leading to strong trip growth elasticity, particularly in California.
Uber One membership surpassed 50 million, growing 50% YoY, and these members spend 3x more than non-members, driving loyalty and cross-platform usage.
Uber is aggressively expanding its autonomous vehicle strategy with over 30 partners and plans to be live in up to 15 cities by year-end, seeing AVs as market-expanding.
The launch of the 'Go-Get' event and partnership with Expedia marks a strategic push into higher-margin, planned services like hotel booking, aiming to deepen engagement.
Revenue$13.203B
-8% QoQ
EPS$0.72
reported
Gross margin45.03%
reported
Op margin14.56%
reported
What changed this quarter
01
Guidance
U.S. mobility acceleration expected to continue on insurance tailwinds
Guidance tone
02
AV
Uber on track to run AVs in up to 15 cities by year-end
Uber's US mobility business is expected to accelerate in 2026, driven by reinvesting insurance savings into lower prices, leading to strong trip growth elasticity, particularly in California.
03
Engagement
Uber One membership now spans over 50 million members
Uber One membership surpassed 50 million, growing 50% YoY, and these members spend 3x more than non-members, driving loyalty and cross-platform usage.
04
Cross-platform
Large delivery cross-sell headroom from mobility users
Uber is aggressively expanding its autonomous vehicle strategy with over 30 partners and plans to be live in up to 15 cities by year-end, seeing AVs as market-expanding.
AI, capex & demand read
AI
Platform & monetization
Management framed AI as an accelerator for personalization, agentic interfaces, and internal productivity, with AI agents now committing roughly 10% of code. Uber is increasing AI infrastructure investment while slowing headcount growth, and expects direct app relationships to remain the primary channel even as third-party agents emerge.
Demand
Bookings & conversion
Management tone is highly confident, citing accelerating mobility growth, delivery strength, freight recovery, and strategic AV partnerships as drivers for continued profitable growth. Guidance implies confidence in continued momentum.
Capex
Investment and capacity
No explicit capex line was discussed, but management said AI tool and infrastructure investment is increasing and AV ecosystem investment (fleet, financing, insurance) continues; these are partially offset by slower headcount growth.
Tone · Upbeat
Management highlighted record milestones, accelerating growth, and repeated confidence in the 2026 outlook, saying 'we feel even more confident today than we did in December or January.'
Supply-chain alpha
A1
Insurance cost savings are being reinvested into lower rider prices, driving trip growth acceleration, particularly in California (LA), and are expected to fuel US mobility acceleration for the rest of 2026.
“we are seeing really good elasticity. And as we would have expected, we've seen that price reduction translate to acceleration and trip growth.”
Uber's 'Go-Get' event signals a strategic push to shift users from on-demand to pre-planned services, with 'Uber Reserve' growing faster than the mainline business and offering higher margins.
Autonomous vehicles are proving to be expansionary for the overall rideshare market in cities like SF and LA, and Uber's category position has improved over the past six months in these markets.
Uber is deliberately trading off slower headcount growth with increased investment in AI tools and infrastructure to improve engineer and employee productivity.
“AI is helping our engineers and our employees across the company become more efficient to move faster across the board in almost every single step of building.”
The partnership with Santander to finance AV fleets is a capital-light strategy for Uber to scale AV without owning the assets, leveraging the predictable revenue profile of AVs on its network.
“AVs on our network have a very predictable use in terms of revenues or trips per vehicle per day, which are at a premium to kind of 1P type networks.”
The partnership with Expedia is critical to Uber's hotel booking expansion, providing access to 700,000 hotels, which could drive cross-platform engagement and Uber One membership value.
“We're very happy to have a relationship with Expedia. Their inventory is second to none.”
Thanks so much for taking the questions dark, can you just talk about how the early benefits of insurance cost savings are playing out in La and San Francisco and what gives you the confidence in continued further us mobility acceleration in 26. And then also just following up on go get last week, how do you shift uber users to more of an on demand from more of an on demand mentality into booking hotels ahead of time ahead of when it's needed thanks.
… some kind of feedback from our users, well, the reliability of Uber is awesome, but if I absolutely knew that the driver was gonna show up 15 minutes early, et cetera, it could reduce some of the stress as it related to travel. And of course, it was a great opportunity for us to continue to increase travel bookings. And we've consistently seen our Uber Reserve service growth rates continue to grow well in excess of the mainline business. And as you know, the mainline business is growing at healthy rates as well. The margins on Uber Reserve are higher. Customer satisfaction is very, very strong. And now we're developing the reserve service not just as a service for people to go to airports, but people to get picked up when they land in airports as well. The experience with reserve for us demonstrated our ability to go from on demand to planned services, so to speak. Travel is a very, very natural category for us to get into. Airports are about 15% of our mobility gross bookings and 40% of, for example, our U.S. riders take trips outside of their home city. And globally, just last year, we had over 1.5 billion trips happening outside one of our users home cities. So when you put that together, which is proving ourselves with reserve, you know, moving from on demand to kind of planning ahead. And then the incredible audience and efficacy we have with a travel consumer hotels was, of course, a very, very natural expansion for us. We're very happy to have a relationship with Expedia. Their inventory is second to none. So now we've got 700,000 hotels available on Uber as we speak. And we've taken most of the economics of that deal and we are giving it back to our Uber One members. Uber One members get 10% Uber credits. There's a rolling list of 10,000 hotels where you get another 20% off as well. So really the focus for us is drive that cross-platform activity, give a bunch of money back to Uber One members. And obviously you've seen kind of the momentum that we've had with Uber One with over 50 million members growing 50%. The retention rates are higher. They spend three times more. It's a unique advantage that we have over our competition. We're very much looking forward to the product. We're really happy that the team put it together and happy about our partnership. Only we're hoping hotels can be just as big as reserve. Apology, you want to talk insurance?
Hi, there. Thanks for taking the question. I had a couple, please. Balaji, maybe for you first, I appreciate the ROI framing in the letter. So you've clearly been investing behind the business and making some near-term margin trade-offs. What does the successful payback look like for Uber at the aggregate level? Is it this ability to compound at 20% for much longer? How do you think about that? And then maybe for Dara, you know, the Santander deal announcement yesterday was interesting around financing. It looks like there's line of sight to financing AV fleets in the future as well. What has that broader conversation been like with those partners, and how do you think about integrating…
Yeah, and as far as the Santander deal, it's something that we're very, very excited about. I think to step back for a second, in order for AV to scale and get into the hundreds of millions in terms of trip count, we really have to build out a whole ecosystem around the development of these AV drivers, and that ecosystem includes fleet management, it includes depots and charging and repair and cleaning. It includes financing. It includes insurance as well. And we're investing in that entire ecosystem. You know, we talked about a new relationship that we're building with Hertz on the fleet management side. We have teams going out and securing depots and markets that we think are ready from a regulatory standpoint as well now. And we have been doing so to some extent and working with these fleets for some period of time as an increasing percentage of our drivers had moved from combustion vehicles to EVs as well. So these are muscles that we've built for some period of time. Financing and building out kind of financing for AVs is to some extent trickier because the residual value of these AVs is not something that is clear, right? There's a residual value for cars and used cars. There are very liquid markets for them. That is not true of AVs at this point, although it will be true. And for us, the advantage that we have is that AVs on our network have a very predictable use in terms of revenues or trips per vehicle per day, which are at a premium to kind of 1P type networks. And as a result, revenue per vehicle per day And that kind of creates the circumstances where we think you can build a very, very healthy financing ecosystem. So we can build AV, but we can also build a capital light, essentially. We're really happy to work with Santander as it's been incredibly innovative in this field on a global basis. And then, you know, on insurance, for example, we talked about a relationship with Marsh and Apollo as well to build out insurance. And we think actually AV insurance is going to be cheaper than human insurance because ADs ultimately will be safer as well. So we're investing in the whole ecosystem, very happy with the Sanford-Dare relationship, and we're looking forward to building from there. Next question, please.
Hi, there. Thanks for taking the question. I had a couple, please. Balaji, maybe for you first, I appreciate the ROI framing in the letter. So you've clearly been investing behind the business and making some near-term margin trade-offs. What does the successful payback look like for Uber at the aggregate level? Is it this ability to compound at 20% for much longer? How do you think about that? And then maybe for Dara, you know, the Santander deal announcement yesterday was interesting around financing. It looks like there's line of sight to financing AV fleets in the future as well. What has that broader conversation been like with those partners, and how do you think about integrating…
Yeah, and as far as the Santander deal, it's something that we're very, very excited about. I think to step back for a second, in order for AV to scale and get into the hundreds of millions in terms of trip count, we really have to build out a whole ecosystem around the development of these AV drivers, and that ecosystem includes fleet management, it includes depots and charging and repair and cleaning. It includes financing. It includes insurance as well. And we're investing in that entire ecosystem. You know, we talked about a new relationship that we're building with Hertz on the fleet management side. We have teams going out and securing depots and markets that we think are ready from a regulatory standpoint as well now. And we have been doing so to some extent and working with these fleets for some period of time as an increasing percentage of our drivers had moved from combustion vehicles to EVs as well. So these are muscles that we've built for some period of time. Financing and building out kind of financing for AVs is to some extent trickier because the residual value of these AVs is not something that is clear, right? There's a residual value for cars and used cars. There are very liquid markets for them. That is not true of AVs at this point, although it will be true. And for us, the advantage that we have is that AVs on our network have a very predictable use in terms of revenues or trips per vehicle per day, which are at a premium to kind of 1P type networks. And as a result, revenue per vehicle per day And that kind of creates the circumstances where we think you can build a very, very healthy financing ecosystem. So we can build AV, but we can also build a capital light, essentially. We're really happy to work with Santander as it's been incredibly innovative in this field on a global basis. And then, you know, on insurance, for example, we talked about a relationship with Marsh and Apollo as well to build out insurance. And we think actually AV insurance is going to be cheaper than human insurance because ADs ultimately will be safer as well. So we're investing in the whole ecosystem, very happy with the Sanford-Dare relationship, and we're looking forward to building from there. Next question, please.
OPENAI
Private company
Partners
Uber plans to integrate with AI agents like OpenAI's to remain accessible as an 'agentic' layer evolves, ensuring it is not disintermediated.
Hey, good morning. Thank you for the question. I wanted to talk about an inbound question we're getting from investors a lot, and that's a greater risk to marketplaces' direct relationship with their users as we could see in adoption of personal agents going forward. So the view is someone's going to talk to their personal agent that either Meta or Google builds and they say, order me a ride share ride with the fastest ETA or order me pizza from my favorite place. And they never interact with their go-to apps and you get like abstracted away. Could you talk about Uber's approach to this, how you're viewing the risk, if there's some preventative measures in your terms of services, or any…
… deep engagement that they have with us. First thing I'd say is we are investing in these agents and we are investing in these AI tools. and we're seeing kind of the interaction directly with our agents be the first use case. That's a magical use case. And I talked about this early in the call, like three quarters of the time, for example, the mobility, we're guessing we can anticipate where you're going to go. So it's just kind of a one push button. You know, our agent knows, hey, biology, time to go home, right, for you. And those are kind of unique benefits that we bring. At the same time, we are working and talking to many of these third-party agents um we have a great market position so we're able to kind of often dictate the the terms of trade in those in those discussions um i think you'll know that i came from the travel industry many many years ago and there were fears for example in travel in terms of meta search and this layer above the travel companies and as a travel business consolidated with an expedia or booking an airbnb which are incredible companies most of the value of those front ends accrued to the large players, the consolidated players, Expedia, the Airbnbs and the booking.com. So we've kind of seen this movie before. As long as we are building terrific core products, we think we will get more than our fair share of consumers coming direct to our services. We will build in APIs to whether it's an Apple or an OpenAI or a quad or know Gemini we will work with these agents as well but I think we'll continue to see um that the majority of our transactions come direct uh we saw the same theme play out in meta search I don't know if folks remember but at one point uh even google maps had kind of comparison shopping between uber and lyft and it wasn't the same experience as coming direct to the app so we're very confident that you know AI is going to empower entirely new experiences But we think the majority of those experiences are going to come direct to us. All right. So I think that's it. Thank you very much for joining the call. Huge thank you to the Uber teams who delivered another terrific quarter for us. And another thank you to our partners, whether it's our earners, couriers, drivers, and also merchants. who make this all possible. Thank you very much for joining and look forward to talking to you in the next couple of quarters.
Autonomous vehicles are proving to be expansionary for the overall rideshare market in cities like SF and LA, and Uber's category position has improved over the past six months in these markets. — Suggests the market growth from AVs is not zero-sum; Uber is also gaining share, reducing the competitive threat from Waymo and other AV players in key markets.
next question comes from justin post with bank of america your line is open great thanks for taking my question uh we'll go to avs um i know wemo is launching a bunch of southern cities just wondering what you're seeing in those cities any changes to your growth rate and then second some real progress with partners during the quarter uh what's kind of putting you over the top with like zoox and others getting getting those deals done thank you yeah absolutely uh justin so
We continue to believe ABs are huge opportunities for the entire industry. This is, you know, we think another trillion dollars am. And we don't see this as being a winner-take-all market. We certainly see Waymo moving very quickly, as we are moving very quickly. And I'll remind you, we expect to be in 15 markets by year-end, and then significantly more than that going into next year with you know, partners like Neuro, like Nvidia, like Zoops as well. So we're very, very happy about what's going on there. You know, our mobility business accelerated versus last quarter. Our U.S. mobility business actually accelerated more than the overall business. And we talked about the anticipation that U.S. mobility is going to continue to accelerate for the balance of the year. So at this point, we don't see any effect. of the Waymo launches on our overall business. And we continue to see Waymo kind of the performance of our businesses with Waymo in Austin, Atlanta continue to be strong. Driver earnings are up. More drivers are joining those platforms as well. And then if you look at kind of markets where Waymo has been launching, has been around for some period of time, San Francisco and L.A., for example, our category position, both in San Francisco and L.A., is higher today than it was six months ago. So this is an overall business that is of scale, the overall mobility business. We continue to see very, very healthy trends, and we don't see any signs of that abating at this point. And, of course, we continue to invest in AV aggressively with our partnership model. And then I think, listen, why are we having success in signing up partners? I think it's self-evident, which is we've got demand. We have shown that the utilization of these cars, which are very, very expensive on our platform, is higher. And then we're also very excited to talk about Uber with the launch of Uber Autonomous Solutions, which helps our AV partners focus on kind of building the driver, and we can build everything else around them, whether that's fleet management, helping them with data collect, et cetera. So we think we're very early in this year, and we're very excited about the AV trends that we're seeing. Next question, please.
The partnership with Santander to finance AV fleets is a capital-light strategy for Uber to scale AV without owning the assets, leveraging the predictable revenue profile of AVs on its network. — This de-risks Uber's AV strategy, allowing it to scale rapidly without massive capex, while providing a new revenue stream for financial partners like Santander.
Hi, there. Thanks for taking the question. I had a couple, please. Balaji, maybe for you first, I appreciate the ROI framing in the letter. So you've clearly been investing behind the business and making some near-term margin trade-offs. What does the successful payback look like for Uber at the aggregate level? Is it this ability to compound at 20% for much longer? How do you think about that? And then maybe for Dara, you know, the Santander deal announcement yesterday was interesting around financing. It looks like there's line of sight to financing AV fleets in the future as well. What has that broader conversation been like with those partners, and how do you think about integrating…
Yeah, and as far as the Santander deal, it's something that we're very, very excited about. I think to step back for a second, in order for AV to scale and get into the hundreds of millions in terms of trip count, we really have to build out a whole ecosystem around the development of these AV drivers, and that ecosystem includes fleet management, it includes depots and charging and repair and cleaning. It includes financing. It includes insurance as well. And we're investing in that entire ecosystem. You know, we talked about a new relationship that we're building with Hertz on the fleet management side. We have teams going out and securing depots and markets that we think are ready from a regulatory standpoint as well now. And we have been doing so to some extent and working with these fleets for some period of time as an increasing percentage of our drivers had moved from combustion vehicles to EVs as well. So these are muscles that we've built for some period of time. Financing and building out kind of financing for AVs is to some extent trickier because the residual value of these AVs is not something that is clear, right? There's a residual value for cars and used cars. There are very liquid markets for them. That is not true of AVs at this point, although it will be true. And for us, the advantage that we have is that AVs on our network have a very predictable use in terms of revenues or trips per vehicle per day, which are at a premium to kind of 1P type networks. And as a result, revenue per vehicle per day And that kind of creates the circumstances where we think you can build a very, very healthy financing ecosystem. So we can build AV, but we can also build a capital light, essentially. We're really happy to work with Santander as it's been incredibly innovative in this field on a global basis. And then, you know, on insurance, for example, we talked about a relationship with Marsh and Apollo as well to build out insurance. And we think actually AV insurance is going to be cheaper than human insurance because ADs ultimately will be safer as well. So we're investing in the whole ecosystem, very happy with the Sanford-Dare relationship, and we're looking forward to building from there. Next question, please.
Hey, great. Thanks for taking my questions. Starting with AI spending, where you already bumped up on your original full year budget not long after the first quarter ended. When thinking about how you're approaching layering AI capabilities into workflows, are you viewing them as more supplementing or replacing existing processes to give, just to give a sense for how much those investments are incremental to the existing spend? And second, maybe you could just talk a little bit about any notable market share trends across your top 10 delivery and mobility markets, and maybe talk a little bit about what's helping you deliver leverage across delivery specifically while growth is…
Yeah, I'll get there. And just one last comment on AI. I would say candidly, when we set up budgets for 2026 in November, we underestimated the amount of impact the AI tools could have. And obviously, in December, we had new models come in. So we've re-upped our investment here. And as Dara said, we are trading that off against incremental headcount growth, which we noted in the remarks as well. On delivery competition, so first of all, as we noted in the earnings materials, we are seeing our delivery position improving quite substantially across the globe. We are, as we think about our top 10 markets, really in the U.S., we are continuing to invest in our sparse markets expansion, and we expect to see results from that over time. In international markets, we are very much on an offensive footing. So if you think about Europe, where we are seeing an incremental level of competitive intensity from both DoorDash and Process as they have expanded into the market, we've held our own quite well. And in addition to defending our core positions, we are on the offensive in the market. We've announced expansion to seven new markets. Just this morning, we launched in Finland. We are already at the number one position on the App Store there. And we've talked about the other large markets in the region that we will continue to go into. In APAC, we are seeing very good trends in Australia, Japan, Taiwan. Australia has been a standout from its highly penetrated position. As we've gone into sparser markets, we've reaccelerated that business back to 30%. growth, and similarly in Japan, we're seeing very good trends as well.
Management references a past competitive dynamic with Lyft to illustrate how direct relationships with users are more valuable than third-party intermediary channels.
Hey, good morning. Thank you for the question. I wanted to talk about an inbound question we're getting from investors a lot, and that's a greater risk to marketplaces' direct relationship with their users as we could see in adoption of personal agents going forward. So the view is someone's going to talk to their personal agent that either Meta or Google builds and they say, order me a ride share ride with the fastest ETA or order me pizza from my favorite place. And they never interact with their go-to apps and you get like abstracted away. Could you talk about Uber's approach to this, how you're viewing the risk, if there's some preventative measures in your terms of services, or any…
… deep engagement that they have with us. First thing I'd say is we are investing in these agents and we are investing in these AI tools. and we're seeing kind of the interaction directly with our agents be the first use case. That's a magical use case. And I talked about this early in the call, like three quarters of the time, for example, the mobility, we're guessing we can anticipate where you're going to go. So it's just kind of a one push button. You know, our agent knows, hey, biology, time to go home, right, for you. And those are kind of unique benefits that we bring. At the same time, we are working and talking to many of these third-party agents um we have a great market position so we're able to kind of often dictate the the terms of trade in those in those discussions um i think you'll know that i came from the travel industry many many years ago and there were fears for example in travel in terms of meta search and this layer above the travel companies and as a travel business consolidated with an expedia or booking an airbnb which are incredible companies most of the value of those front ends accrued to the large players, the consolidated players, Expedia, the Airbnbs and the booking.com. So we've kind of seen this movie before. As long as we are building terrific core products, we think we will get more than our fair share of consumers coming direct to our services. We will build in APIs to whether it's an Apple or an OpenAI or a quad or know Gemini we will work with these agents as well but I think we'll continue to see um that the majority of our transactions come direct uh we saw the same theme play out in meta search I don't know if folks remember but at one point uh even google maps had kind of comparison shopping between uber and lyft and it wasn't the same experience as coming direct to the app so we're very confident that you know AI is going to empower entirely new experiences But we think the majority of those experiences are going to come direct to us. All right. So I think that's it. Thank you very much for joining the call. Huge thank you to the Uber teams who delivered another terrific quarter for us. And another thank you to our partners, whether it's our earners, couriers, drivers, and also merchants. who make this all possible. Thank you very much for joining and look forward to talking to you in the next couple of quarters.
Autonomous vehicles are proving to be expansionary for the overall rideshare market in cities like SF and LA, and Uber's category position has improved over the past six months in these markets. — Suggests the market growth from AVs is not zero-sum; Uber is also gaining share, reducing the competitive threat from Waymo and other AV players in key markets.
next question comes from justin post with bank of america your line is open great thanks for taking my question uh we'll go to avs um i know wemo is launching a bunch of southern cities just wondering what you're seeing in those cities any changes to your growth rate and then second some real progress with partners during the quarter uh what's kind of putting you over the top with like zoox and others getting getting those deals done thank you yeah absolutely uh justin so
We continue to believe ABs are huge opportunities for the entire industry. This is, you know, we think another trillion dollars am. And we don't see this as being a winner-take-all market. We certainly see Waymo moving very quickly, as we are moving very quickly. And I'll remind you, we expect to be in 15 markets by year-end, and then significantly more than that going into next year with you know, partners like Neuro, like Nvidia, like Zoops as well. So we're very, very happy about what's going on there. You know, our mobility business accelerated versus last quarter. Our U.S. mobility business actually accelerated more than the overall business. And we talked about the anticipation that U.S. mobility is going to continue to accelerate for the balance of the year. So at this point, we don't see any effect. of the Waymo launches on our overall business. And we continue to see Waymo kind of the performance of our businesses with Waymo in Austin, Atlanta continue to be strong. Driver earnings are up. More drivers are joining those platforms as well. And then if you look at kind of markets where Waymo has been launching, has been around for some period of time, San Francisco and L.A., for example, our category position, both in San Francisco and L.A., is higher today than it was six months ago. So this is an overall business that is of scale, the overall mobility business. We continue to see very, very healthy trends, and we don't see any signs of that abating at this point. And, of course, we continue to invest in AV aggressively with our partnership model. And then I think, listen, why are we having success in signing up partners? I think it's self-evident, which is we've got demand. We have shown that the utilization of these cars, which are very, very expensive on our platform, is higher. And then we're also very excited to talk about Uber with the launch of Uber Autonomous Solutions, which helps our AV partners focus on kind of building the driver, and we can build everything else around them, whether that's fleet management, helping them with data collect, et cetera. So we think we're very early in this year, and we're very excited about the AV trends that we're seeing. Next question, please.
Uber's 'Go-Get' event signals a strategic push to shift users from on-demand to pre-planned services, with 'Uber Reserve' growing faster than the mainline business and offering higher margins.
Uber is deliberately trading off slower headcount growth with increased investment in AI tools and infrastructure to improve engineer and employee productivity.
Hey, great. Thanks for taking my questions. Starting with AI spending, where you already bumped up on your original full year budget not long after the first quarter ended. When thinking about how you're approaching layering AI capabilities into workflows, are you viewing them as more supplementing or replacing existing processes to give, just to give a sense for how much those investments are incremental to the existing spend? And second, maybe you could just talk a little bit about any notable market share trends across your top 10 delivery and mobility markets, and maybe talk a little bit about what's helping you deliver leverage across delivery specifically while growth is…
Yeah, absolutely. So we're seeing the use of AI just – grow at unbelievable rates. And you're seeing it in the market as well. We're certainly seeing it within our company. I think if you look at Uber, we have been using AI tools, whether it's for pricing or matching or routing for years and years. We're kind of very comfortable in the real world, which is a probabilistic world. versus a deterministic world. So using these AI tools and building with these AI tools, it's just kind of how we build and how we built for many, many years. So we're seeing uptake of these tools, whether it's our legal team or marketing team or developers. And we think it's creating kind of employees with superpowers. And I would say that it's important to note that You know, AI, for example, our engineers don't just write code. There's a lot more that goes into it. You know, there's prototyping ideas and design ideas with designers and PM. There's certainly coding activity, which AI helps with. There's reviewing and testing your code, whether it's an AI agent reviewing that code and then humans as well to make sure that there's a proper code review before you check in that code. whether it's being on call and making sure that all the systems are running or it's maintenance, it's migrating code or improving kind of performance of that code. AI is helping our engineers and our employees across the company become more efficient to move faster across the board in almost every single step of building. And we are seeing it. Like if we look at the number of code commits for engineer, It's increasing. The number of lines per code is increasing. About 10% of our code now is committed. That committed is built by agents, autonomous agents out there. Obviously, we check the code before it gets committed. So I think you should just look at AI as an accelerator. For us, for every company, it means that our investment in AI tools and infrastructure is increasing. That will be offset by slower headcount growth. But if every person at this company can increase their throughput by 20, 30, 50, 100%, then I think metering headcount growth and leaning in on AI investment is going to be well worth it. Abhar, do you want to talk about the competitive environment?
The partnership with Santander to finance AV fleets is a capital-light strategy for Uber to scale AV without owning the assets, leveraging the predictable revenue profile of AVs on its network.
Hi, there. Thanks for taking the question. I had a couple, please. Balaji, maybe for you first, I appreciate the ROI framing in the letter. So you've clearly been investing behind the business and making some near-term margin trade-offs. What does the successful payback look like for Uber at the aggregate level? Is it this ability to compound at 20% for much longer? How do you think about that? And then maybe for Dara, you know, the Santander deal announcement yesterday was interesting around financing. It looks like there's line of sight to financing AV fleets in the future as well. What has that broader conversation been like with those partners, and how do you think about integrating…
Yeah, and as far as the Santander deal, it's something that we're very, very excited about. I think to step back for a second, in order for AV to scale and get into the hundreds of millions in terms of trip count, we really have to build out a whole ecosystem around the development of these AV drivers, and that ecosystem includes fleet management, it includes depots and charging and repair and cleaning. It includes financing. It includes insurance as well. And we're investing in that entire ecosystem. You know, we talked about a new relationship that we're building with Hertz on the fleet management side. We have teams going out and securing depots and markets that we think are ready from a regulatory standpoint as well now. And we have been doing so to some extent and working with these fleets for some period of time as an increasing percentage of our drivers had moved from combustion vehicles to EVs as well. So these are muscles that we've built for some period of time. Financing and building out kind of financing for AVs is to some extent trickier because the residual value of these AVs is not something that is clear, right? There's a residual value for cars and used cars. There are very liquid markets for them. That is not true of AVs at this point, although it will be true. And for us, the advantage that we have is that AVs on our network have a very predictable use in terms of revenues or trips per vehicle per day, which are at a premium to kind of 1P type networks. And as a result, revenue per vehicle per day And that kind of creates the circumstances where we think you can build a very, very healthy financing ecosystem. So we can build AV, but we can also build a capital light, essentially. We're really happy to work with Santander as it's been incredibly innovative in this field on a global basis. And then, you know, on insurance, for example, we talked about a relationship with Marsh and Apollo as well to build out insurance. And we think actually AV insurance is going to be cheaper than human insurance because ADs ultimately will be safer as well. So we're investing in the whole ecosystem, very happy with the Sanford-Dare relationship, and we're looking forward to building from there. Next question, please.
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