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Insights: Uber

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Uber bids for Grubhub

Briefing

 You describe Uber as a platform for public transit. You use the expression the Amazon of transportation. Tell everybody what you mean by that. What's the big vision for Uber? Well some what we're looking to build at Uber is essentially your A, to be platform for anyone wanting to get from one place within a urban destination to another place. And what I talked to some folks about is cars are to us what books were to Amazon. Just like Amazon was able to build this extraordinary infrastructure first on the back of books and they went into additional categories, you're going to see the same thing coming from Uber. And that category number one was actually black cars. And then the team went and execute it beautifully behind Uber X and brought in a number of other categories. And now what you see with e-bikes and you see with scooters, et cetera, I know that it's all over the news, et cetera, but I actually think that this is just the beginning. This is just the beginning of new technology that with battery technology and contract manufacturing, scale that you're seeing on a global basis, I think you're going to see extraordinary innovation around personal transportation in urban destinations. I think so we've invested in e-bikes and we partner with Lime on scooters, et cetera and other bikes. And we're going to look to work with the transportation providers in the cities. We want to have the bus system show up on Uber. We want to have a metro system show up on Uber. It is going to be real time. You're going to have real data. The payment system is going to be incredibly easy with one touch. And eventually, over a period of time, we can bring in other technology into these traditional segments of transportation if it's appropriate like dynamic pricing or dynamics supplier or dynamic routing. So we think that we can bring so much to bear. And so far, we've done only one mode of transportation. We want to bring into every single mode of transportation on our urban basis and then the better magic actually is if we link it all together so that you can always, as an individual, make the trade off between time, convenience, privacy, and cost whether you want to go pool or whether you want to go alone or whether you want to go black. We will give those choices to you, and you'll make that determination one way or the other. 

Insights: Uber CEO: Cars Are to Us What Books Are to Amazon

Uncategorized

Here's Dara Khosrowshahi's vision for the future of Uber.

Uber CEO: Cars Are to Us What Books Are to Amazon

you describe uber as a platform for public transit, you use the expression the Amazon of transportation. Tell everybody what you what you mean by that? What's the big with the big vision for uber? Well, we're looking to build at Uber is, um essentially your A to B platform for anyone wanting to get from one place within a urban destination to to another place. Uh, and what I talked to some folks about is, you know, cars are up. What books were the Amazon, just like Amazon was able to build this extraordinary infrastructure first on the back of books, and they went into additional categories. You're gonna see the same thing coming from uber in that category. Number one was actually black cars. And then the team went and executed beautifully behind overact and brought in a number of other categories. And now what you see with e bikes and you see with scooters, et cetera, I know that it's all over the news, et cetera, But I actually think that there's this is just the beginning. This is just the beginning of new technology that with battery technology and contract manufacturing scale, but you're seeing on a global basis. I think you're gonna see extraordinary innovation around personal transportation in urban destinations. I think so. We've invested in the bikes and we partner with lime on scooters, etcetera and other bikes, and we're going to look to work with the transportation providers in the cities. We want to have the bus system show up on a rumor. We want to have a metro system show up on whoever it is going to be really time you're gonna have real data. The payment system is going to be incredibly easy with one touch on eventually over Purdue. Tom, we can bring in other technology into these traditional segments of transportation if it's appropriate, like dynamic pricing or dynamics of fire dynamic routing. So we think that we can bring so much to bear. And so far we've done on Lee one motor transportation. We want to bring in every single motor transportation on our urban basis and then the better magic. Actually, if we link it all together so that you can always individual make the trade off between time, convenience, privacy and cost, whether you want to go pool or whether you want to go alone or whether you want to go black, We will give those choices to you and you and you will make that determination won't wear the other.

Insights: Uber’s IPO Filing: 6 Numbers You Need to Know

Uber’s IPO Filing: 6 Numbers You Need to Know

 AUDIENCE: It's one thing to change your corporate culture with the people you work with, but most of your workforce are independent contractors, and yet you're in a service business where the brand really emerges in people's interactions. So how are you going to address enculturating your independent contractors where you have a requirement for independence and so on? DARA KHOSROWSHAHI: Well, we are now very actively building our product, and really, I think, treating our drivers as partners. So when we go out and build out the new driver app and the services, et cetera, for the first time, I think, we are now listening to our drivers and we are building out our services in concert with them. So I think that's one, which is if you're going to call your drivers partners, then treat them like partners. And then the second is we are looking, for example, in Europe, we announced the new service with alliance, in concert, with alliance where our drivers in the EU are getting protections. They're getting health care, they're getting maternity leave, paternity leave, accidental coverage, et cetera, so you don't get this world where independent contractors are the have-nots and full-time employees are the haves. I think that where the world is going is much more-- it used to be like you trusted-- you got married to a company. And I think that work should be about work, not about company. And so where we would like to take independent contractors is, is to take it into a state where it's not a half-not state and you can create a framework of benefits, et cetera, around the work as well. We have a long way to go, but at least in Europe, we've gone one step closer. 

Insights: Uber CEO Says It Will Treat Drivers More Like Partners

Khosrowshahi wants independent contractors to get benefits.

Uber CEO Says It Will Treat Drivers More Like Partners

Dara Khosrowshahi wants independent contractors to get similar benefits and perks that full-time employees do.

It's one thing to change your corporate culture with the people you work with, but most of your workforce are independent contractors, and yet you're in a service business where the brand really emerges in people's interaction. So how are you gonna address and cultural ating? You're independent contractors where you have a requirement for independence and so on. Well, we are now very actively building our product and really, I think, treating our drivers as partners. So when we go out and build out the new driver app and the service's etcetera for the first time, I think we are now listening to our drivers, and we are building at our service is in concert with them. So I think that's one which is, you know, if you're gonna call your driver's partners, then treat them like partners. Um, and then the second is we are looking, for example, in Europe, uh, we, uh, announced the new service with Alliance in concert with the lions, where our drivers in the U are getting protection. They're getting health care, their getting maternity leave paternity, leave accidental coverage, etcetera so that you don't get this world where independent contractors or have not and full time employees have. I think that where the world is going is much more used to be like You trusted you got married to a company, right? And I think that work should be that work, not about company. And so where we would like to take independent contractors is is to take it into a state where it's not 1/2 not state, and you can create a framework of benefits etcetera around the workers. Well, we have a long way to go, but at least in Europe were down one step closer.

[MUSIC PLAYING] The great thing about this business is if there's one thing to fear us, I believe that's actually not taxis, although I realize we've been very competitive, et cetera. It's car ownership. And when you look at our business, and for example, Lyft together in the US, we are responsible for significantly less than 1% of miles driven in the US. So as the cost per mile comes down, as we invest in technology like Pool, where we bring more than one person into cars, we may test with high occupancy vehicles, et cetera, the cost per mile for transportation is going to keep coming down. The cost of car ownership, I don't believe is going to keep coming down because of various aspects there. And we will become more and more competitive with car ownership across the broader swathes of cities. That's where we're going. And if that happens, we'll go from 0.5%, hopefully, to 20%, 30%, which is a huge multiplier of this business. I really believe we're just getting started here. [MUSIC PLAYING]

Insights: Uber CEO Sees Car Ownership as Biggest Competition

CEO Khosrowshahi on Uber’s strategy, business, culture.

Uber CEO Sees Car Ownership as Biggest Competition

Uber’s CEO Dara Khosrowshahi gives an in-depth update on the state of Uber’s strategy, business, culture, and its coming IPO at Fortune’s 2018 Brainstorm Tech conference.

The great thing about this business is if there's one thing to fear us, I believe it's actually not taxis, although I realize we've been very competitive, etcetera. It's car ownership. And when you look at our business, for example, lift together in the U. S. Were responsible for significantly less than 1% of miles driven in in the U. S. So as the cost per mile comes down as we invest in technology like pool, where we bring more than one person into cars, we may test with high occupancy vehicles, et cetera. The cost per mile for transportation is gonna keep coming down. The cost of car ownership, I don't believe is gonna, uh, keep coming down because of various Catholic there, and we will become warm or competitive with car ownership across the broader swath of cities. That's where we're going. And if that happens, you know we'll go from 0.5% hopefully toe 2030% which is, you know, a huge multiplier of this business. I really believe we're just getting started here

[MUSIC PLAYING] SPEAKER: In just five years, Uber has expanded from its home base in San Francisco to more than 60 countries around the globe by making it simple to hail a car with your smartphone. But as Fortune found out, behind the app is a complicated corporate structure designed to limit the taxes that Uber pays on rides outside the US. Following exactly where the money goes requires navigating more twists and turns than a cab ride through Rome. Let's say, you've taken an Uber ride in the Italian capital and paid the equivalent of $20. That $20 goes to a company based in the Netherlands called Uber BV. Uber BV sends 80% of the money back to the driver through another Dutch company called Rasier. The Italian government will eventually get some tax revenue from your Uber ride in Rome when the driver self-reports that income. The remaining 20% of your fare $4 out of the original 20 stays with Uber BV initially, but that doesn't mean that it all gets taxed. Uber ends up paying taxes to the Dutch government on just 1% of that revenue, the equivalent of $0.01 out of the original $20. First, Uber deducts cost, a small portion of which will eventually filter back to the Italian government through taxes paid by Uber's local subsidiary in Italy. Then, Uber BV sends the remaining money, everything up to 1% of revenue as a royalty payment to another Dutch company called Uber International CV, which lists its headquarters at an address in Bermuda. Because Uber International CV is a partnership controlled by Uber's US business, the Dutch don't collect taxes on its income. Bermuda charges no tax on corporate income. And US tax authorities see Uber international CV as a Dutch company and allow it to defer US taxes indefinitely. Only a small royalty that Uber International CV pays back to Uber in the US will be taxable. The result, almost none of Uber International CV's income, a large portion of Uber sales around the world is taxed. Uber may have sprung out of the US tech scene, but its home country won't end up collecting taxes on much of its income. 

Insights: Following The Money at Uber

Following The Money at Uber

Fortune untangles the trail behind Uber's elaborate tax scheme. Assistant managing editor Brian O'keefe reports.

In just five years, Uber has expanded from its home base in San Francisco more than 60 countries around the globe by making it simple to hail a car with your smart. But it's fortunate. Found out. Behind the APP is a complicated corporate structure designed to limit the taxes that uber pasar rides outside the U. S. Following. Exactly where the money goes requires navigating more twists and turns than a cab ride. Let's say you've taken an uber ride in the Italian capital paid the equivalent of $20 that $20 goes to a company based in the Netherlands called uber TV number B V. Since 80% of the money back to the driver through another Dutch company called Rosier, Italian government will eventually get tax revenue from your override in Rome when the driver self reports that in the remaining 20% of your fair $4 out of the original 20 days with B V initially. But that doesn't mean that it all gets uber ends up paying taxes to the Dutch government on just 1% of that revenue equivalent of one cent out of the original $20 1st uber deduct costs, a small portion of which will eventually filter back to the Italian government taxes paid by local subsidiary in Italy. Then Hubert B. V sends the remaining money everything up to 1% of revenue. A za royalty payment to another Dutch company called Uber International TV, which listed headquarters at an address in Bermuda. Because Uber International TV is a partnership controlled by Huber's US, the Dutch don't collect taxes on its income. Bermuda charges no tax on corporate income and U. S tax authorities see Super International TV as a Dutch company and allow it to defer US taxes indefinitely. Only a small royalty that uber international TV pays back to uber in the U. S. Will be taxed. Result almost none of uber international TV's income. A large portion of Cooper's sails around the world is taxed. Uber may have sprung out of the U. S. Texting, but it's home. Country won't end up collecting taxes on much of it.

 AUDIENCE: So I'm a Santa Monica resident and we're kind of overwhelmed, and I think in a wonderfully positive way, by the scooters. Bird Scooters is a local for us, you just invested in Lime. And I think it could totally transform that last mile. Tell me a little bit more about the investment in Lime, how you think about scooters, and maybe how you stack rank scooters versus Eats versus maybe international expansion. DARA KHOSROWSHAHI: It's tough for me to stack rank, although I would agree with you, it is a huge opportunity. And I think when you step back, half the world's population lives in urban centers. That's going to go to 2/3 of the world's population, and that is an extraordinary opportunity. But no city wants more cars. Cities are not going to be able to come up with the infrastructure required to satisfy demand of all these cars. And if you are traveling, let's say, 3 miles or less for you to, as a single occupant, take a car and travel those 3 miles, it's a very inefficient use of assets and it's a very inefficient use of the roads of any city. So when we look at e-bikes and we look at scooters, and I think there will be many, many other versions of it, travel within 2 to 3 miles within cities for individuals or two people, I believe, is going to radically change over the next five to 10 years, and I believe it should radically change, and it's a much, much better use of assets than a car to take you all over the place. We haven't had real innovation around personal transportation in cities for the past 34 years. This is a first time I'm really seeing it. And we want to play a part both as a platform and as kind of a vertical player as well. But if we can bring this and we can work with multiple players to do it, we absolutely will. 

Insights: Uber’s CEO Is Bullish on e-Bikes and Scooters

Uber’s CEO Is Bullish on e-Bikes and Scooters

So I'm a Santa Monica, uh, residents, and we're kind of overwhelmed, and I think in a wonderfully positive way by the scooters. Bird scooters is a local for us. You just invested in lime, and I think it could totally transform that last mile. Tell me a little bit more about the investment in line, how you think about scooters and maybe how you stack rank scooters versus eats versus maybe international expansion. It's tough for me to stack rank, although I would agree it is a huge opportunity, and I think when you step back, half the world's population lives in urban centers. That's gonna go to 2/3 of the world's population, and that is an extraordinary opportunity, right? But no city wants more cars, you know, cities. They're not gonna be able to come up with the infrastructure required to satisfy demand of all these cars and if you are traveling, lets a three miles or less for you, too, as a single occupant. Take a car and travel both three miles is a very inefficient use of assets, and it's very inefficient use of the roads of any city. So when we look at E bikes and we look at scooters and I think there will be many, many other versions of it. Travel within 2 to 3 miles within cities for individuals or two people, I believe, is going to radically change over the next 5 to 10 years, and I believe it should radically change. It's a much, much better use of assets than a car to take you all over the place. We haven't had real innovation around, you know, personal transportation in cities for the past 34 years. This is the first time I'm really seeing it and we want to play a part both as a platform and as a kind of a vertical players. Well, but if we can bring this and we can work with multiple players to do it, we absolutely will.

[MUSIC PLAYING] SPEAKER 1: Uber more than cars? Can it be? TRAVIS KALANICK: I mean, the way we look at what Uber is, is it's the cross between lifestyle, which is, give me what I want and give it to me right now, which we've seen online. Remember, it was like instant gratification, it was the wave of the future in the early 2000s. Give me what I want, give it to me right now, and the logistics to get it to you. So today, we're in the business of delivering cars. We're delivering a car to you that you then can do whatever you want with. Well, the car has a driver as well. But we've done things like last Friday we did Uber Ice Cream, 33 cities around the world. It was essentially on-demand ice cream trucks. SPEAKER 1: Right. TRAVIS KALANICK: Right, so you push a button in 33 cities and an ice cream truck would come. And people were reliving their childhood memories. [MUSIC PLAYING]

Insights: Former Uber CEO Predicts Company's Future in 2013

Travis Kalanick spoke at Brainstorm Tech 2013.

Former Uber CEO Predicts UberEats in 2013

Travis Kalanick CEO of Uber Technologies Speaks at Brainstorm Tech 2013.

is uber more than Clark Canopy. I mean, the way we look at what uber is is the cross the cross between life fowl, which is give me what I want and give it to me right now, which we've seen online, right? We all remember. It was like instant gratification, like the wave of the future in the early two thousands. Right? Give me what I want. Give it to me right now and the logistics to get it right. So today we're in the business of delivering cars were delivering a car to you that you then could do whatever you want with. Um, Well, the car has a driver as well. Um, but we've done things like last Friday. We did uber ice cream. Um, 33 cities around the world was essentially on the man I treating trucks. Right, Right. So you push a button in 33 cities and an ice cream truck would come and people were reliving their childhood memories

 SPEAKER 1: So looking narrowly at transportation alone, Travis, you know, there are a slew of companies, I think Lyft is probably one of the most notable one, who are experimenting in this space. How do you think about them? SPEAKER 2: Well, I think they were pretty interesting took a pretty interesting approach to things that it basically-- the way to think about it, Lyft basically goes into the markets that Uber is in and then gets folks who don't have commercial licenses and don't have commercial insurance and says, bring your own car and provide Uber-like service. And they have a personality that they put along with that sort of fist bumps and the cars have these pink mustaches and things like that. It's regulatory arbitrage like what happened was they did it in California first. And I'm like, holy cow, every trip that's happening-- I'm reading the law-- every trip that's happening is a criminal misdemeanor being committed by the person driving. I don't think that's a good law, but that is the law. And so I'm just like I'm kind of staying out of this one for a little bit and watched it happen for a year. what they were able to do because of no commercial insurance and because of their easy access to supply, the cost was really, really low. So you could see a situation where they each up from the bottom up. and so stay on the sidelines, go with the regulators going to do something about this, they end up doing nothing about it. And then ultimately, after a year saying, you know what? This is OK. This is all right. And we ultimately signed an agreement with the State of California saying that. And so then we basically found a way to get what they call non-TCT license transportation providers onboard in a way that with background checks and insurance and things like this. But ultimately, as they follow us in other cities, we now have a playbook, which is if it's totally just the regulatory risk is just off the charts, we're going to stand back, watch it for 30 days, let the regulators know, look, either enforce the laws that you have in place right now or embrace it. That's fine. But if you have a policy of non-enforcement that goes 30 days, we call it's regulatory ambiguity then we're coming in too because we want to participate in this kind of innovation. 

Insights: How Uber Navigated Regulations and Competition During Startup Days

Travis Kalanick Speaks at Brainstorm Tech 2013.

How Uber Navigated Its Startup Days

Travis Kalanick, CEO of Uber Technologies, Speaks at Brainstorm Tech 2013.

looking narrowly, The transportation alone. Travis, you know, there are a slew of companies I think lift. It's probably one of the most notable one who are experimenting in this stage. How do you think about them? Um well, I think they were pretty interesting. Took a pretty interesting approach. The things that basically the way to think about a lift basically goes into the markets that uber is in and then get folks who don't have commercial licenses and don't have commercial insurance and bring your own car and provide uber like service. And they have a personality that they put along with that sort of fifth bombs. And the cars have these pink mustache is and things like that, right? Um, its regulatory arbitrage, like what happened was they did it in California first. And I'm like, Holy cow, Every trip that's happening. I'm reading Law. Every trip that's happening is a criminal misdemeanor being committed by the person driving. I don't think that's a good law, but that is the law. And so I'm just like I'm kind of staying out of this one for a little bit and watched it happen for a year. But what they were able to do because no commercial insurance and because of their easy access to supply the cost was really, really low. So you could see a situation where they eat you up from the bottom, the bottom up, right? And so stay on the sidelines, go with the regular, is gonna do something about this, may end up doing nothing about it. And then ultimately, after year, saying, You know what, this is okay, right? This is all right. And we ultimately signed an agreement with the State of California saying that. And so then we we basically found a way to get non loved what they call non TCP life transportation providers on board in a way that, you know, with background checks and insurance and things like this. But ultimately, you know, as a follow up in other cities, we now have a playbook, which is, if it's totally just the regulatory risk is just off the charts. We're gonna stand back, watch it for 30 days, let the regulators know, look, either enforce the laws that you have in place right now or embrace it. That's fine, but if you have a policy of non enforcement that goes 30 days. We called regulatory ambiguity. Then we're coming in, too, because we want to participate in this kind of innovation.

Insights: Uber

Uber bids for Grubhub

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In hopes of creating a food-delivery giant.

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Uber bids for Grubhub

Insights: Uber CEO: Cars Are to Us What Books Are to Amazon

Insights: Uber’s IPO Filing: 6 Numbers You Need to Know

Insights: Uber CEO Says It Will Treat Drivers More Like Partners

Insights: Uber CEO Sees Car Ownership as Biggest Competition

Insights: Following The Money at Uber

Insights: Uber’s CEO Is Bullish on e-Bikes and Scooters

Insights: Former Uber CEO Predicts Company's Future in 2013

Insights: How Uber Navigated Regulations and Competition During Startup Days