Deepak Mathivanan: Got it. And then the second part on contribution from products like Shared Ride and potentially something similar along the lines of Reserve, how do you think about that?
David Risher: Yeah. So in our world, we started Shared Ride back in I think it was 2019, 2018, something like that. Even further back, my apologies. But we actually found that it wasn’t a particularly great experience for riders or for drivers. Riders didn’t like it so much, because it feels like a sort of a diversion from where they are going. They are all taking a weird left turn and another weird left turn. And the drivers don’t love it because for drivers, the least enjoyable part of a ride is the pickup and drop-off. And so it, of course, increases pickup and drop-off. So it’s an area that we have decided largely to sunset. There are a couple of use cases where we still use it, but it’s not a very consumer facing product.
And instead, we have Wait & Save, which allows people to wait or have a little bit more flexibility in return for getting some money off. And as I mentioned before, it’s a great product for us. It represents anywhere between 25% and 30% of ride volumes something along there. Our — what Uber calls Reserve, that’s our scheduled ride product. And you will be hearing more about that tomorrow where we are making an even stronger commitment to reliability on those so that when people use it, particularly go to the airport, they have got a great experience. I think there’s enormous upside there. I think there are a lot of time in people’s lives where with a little bit of thought, reserving ahead of time can actually reduce the hassle and stress in their lives.
And as I mentioned before, it has a slight premium price to it. It also has better economics for drivers as well, so they like it to. I will bring up one other thing since you mentioned kind of ride types. We are just in the process, and again, we will be talking more about this tomorrow, but I will give you a preview today of launching a product called Extra Comfort. Extra Comfort is an affordable sort of higher end ride. The cars are newer, the drivers are more experienced, the leg room is a little bit bigger, you can choose a quiet ride and so on and so forth. You will see it if you open up your Lyft at today in almost all of the country and tomorrow even more you will see it and it’s priced at maybe $1 above the normal experience. But it’s a nice experience.
And you might think of it as comparable to Economy Plus in airlines, and if you follow the airline industry, you will know that that’s a crazy profit driver format. It’s making up something — the prices are almost double economy and they are selling out on us. So we look at that as an area very customer-focused, because it allows customers to have a little bit of an upgraded experience, a little better economics for us, a little bit higher margin product and one that represents a very small part of our ride volume today and can grow over time.
Deepak Mathivanan: Thanks so much.
Operator: Our next question comes from Eric Sheridan from Goldman Sachs. Your line is now open.
Eric Sheridan: Thanks for taking the question. Maybe just two, if I could. In terms of capitalizing on the market opportunity when you look out to next year, David. I would love to get your sense of what you see as the mission-critical sort of two or three elements on either the product side or the investment side to continue some of the momentum, especially as you move into environment where you will be lapping some of the changes you have had to make to pricing this year. That would be number one. And then in terms of the Q4 adjusted EBITDA as a percentage of bookings. Can you walk us through some of the headwinds and tailwinds we should be keeping in mind in the Q4 guidance that impact margin guidance, just so we better understand some of those velocities, both headwinds and tailwinds leaving 2023 into 2024, almost as a way to think about incremental margins going forward? Thank you
David Risher: Sure. Yeah. Let’s Erin and I will tag team on this. I will start off, Eric. So I think, I guess, I would come back to differentiated products and services in 2024 and I will mention two again. One, we have already talked about actually, which is Women+ Connect. That’s a new product for us. We just launched it in 50 new markets last week. By the beginning of next year or at the beginning of next year, we hope to roll that out nationwide. Again, that’s not a small marketplace, right? We are talking about roughly half the U.S. population. And if you looked — and I encourage you to do so, if you haven’t, on social media at the comments that we are getting, they give you a pretty good indication of why we are so excited about it.
Literally, women rider is saying, I am in tears now because of what you have done. I am so appreciative that this will allow me to feel more comfortable in a new city. At a time of day, I don’t usually feel comfortable riding and a part of town not usually comfortable. Or for drivers saying, this is going to allow me to drive more or work with my friends to get them on the platform as a driver, because it’s a great opportunity. But I am only using it for scheduled rides or airport rides right now, because I just don’t feel comfortable or have not traditionally but Women+ Connect unlocks all of that. So I think that’s an existing product, but you will see us continue to pour gasoline on that bond fire because it’s great for riders and great for drivers, and obviously, you have tried broad volume and so forth.
There are others, but I am probably not in a good position to talk about them now because I don’t want to tell anyone else listening on the line. For drivers, similarly, anything we do for drivers that increases driver supply, it’s a big win. And I will give you an example of something that we have already launched. So it’s not competitive, but it’s such a great product, and frankly, it’s doing really well, which is — it’s called Drive within the region and it allows you as a driver to say, you know what, I need to be home by 7 tonight to have dinner or I need to be at my kid school, the 2 in the afternoon to pick them up. And by there are actually two different products. One is basically allows you to pick a destination. The other allows you to pick a radius within which you will drive today.
These are both innovations we have started over the last couple of months and they are really picking up massive team for drivers. In fact, actually, I don’t know a role here. So I will tell you a little more for drivers, I think is super interesting. It’s called priority load for drivers and it allows drivers to — it gives drivers additional — you might call it ride flow. And in so doing, they actually trying to make more money per hour, which is really interesting. Again, I can go into detail if you are interested. But the drivers that we have offered that to, which tend to be our more loyal longer term drivers. Absolutely love it and because it allows us to earn more money on the platform. So these are all things — some of them are more kind of in front of the curtain and some of the more but behind the curtain, but you add on them up and each one of them, I think, is a pretty significant growth driver.
