Logan Green: Yes, this is Logan. So in terms of seasonality, I think we’ve seen fairly typical seasonality effects and that accounted for roughly a third of the decrease, so that was baked in and not unexpected. I think the part that we talked about, that John just talked about, the reduction in prime time was much larger than anticipated. And I think that’s a great thing for the business. We’ve been coming off of extremely tight labor market, still tracking the unemployment numbers. It’s not showing up in the public numbers that there’s any softening. But we have seen real softening in Q1. And so that shift, I think, is very healthy, but has and had a significant quarter-over-quarter impact. And then the other kind of key piece on insurance is we had previously increased base prices in Q4, right?
This is not prime time. This is just the base fare. And in January, the competition reduced their prices as they eliminated the fuel surcharge. So we rolled back our base price increase to ensure that we had competitive pricing in the market. But the bottom line is that puts margin pressure on Q1, as you can see in the guidance.
John Zimmer: And then you asked a bit about, I think, active riders. We’re happy to see quarter-over-quarter that tick up. And the increase on active riders on the rideshare side was large enough to account for what is typically a sharp decrease on the bike and scooter side because you have obviously snow and cold weather. Thanks for the questions.
Operator: Your next question comes from the line of Mark Mahaney with Evercore.
Mark Mahaney: Okay, I’m going to get away from the quarter and just talk about big picture issues like or ask about big picture issues like regulation. So, two things in particular, New York City and then Prop 22 in California. What’s the latest thoughts on handling those risks? Thank you.
Logan Green: Sure. Thanks for the question. So I think you asked about California and New York, is that right?
Mark Mahaney: That’s right.
John Zimmer: Cool. So in California, the Attorney General, along with the Protect App Based Drivers and Services Coalition, of which we’re part of both that group and the AG, appealed the Superior Court’s ruling against Prop 22, which you probably know, oral arguments were in December, and they basically have until mid-March to issue a decision. Regardless of which way the ruling goes, the next step is likely an appeal by either side to the California Supreme Court. That could then take a few months to even over a year, depending on whether the Supreme Court accepts that review. Although you didn’t ask about it, in Washington State, there was a historic milestone last year where a new law was signed that did protect the independent contractor plus model.
It’s the model preferred by driver and notably, a labor organization. And elected officials, along with the companies, listened to drivers and work together to pass the bill. In New York, a classification bill does not seem to be a priority for either the legislature or governor this session, which ends in June. So we’re focused on building the relationships and engaging the driver community to lay some groundwork for potential movement on that in 2024.
Operator: Your next question comes from the line of Nikhil Devnani with Bernstein.
