Prashanth Mahendra-Rajah: Thanks, Brian. Let me start then. So maybe as a reminder, when we think about investments on a quarterly basis across the market, we think about investments as what do we need to do to encourage drivers and couriers to come onto the platform, what can we do to be helpful to bring merchants to the platform and then lastly, what can we do to encourage consumers. So we rotate among those three on a quarterly basis based on what we are trying to drive in the different markets in which we operate. For the first quarter in mobility because of the seasonality trends in the first quarter, the return we get on some of those investment dollars tends to be lower than we see later in the quarter just because of seasonal patterns.
And because that ROI is lower, it didn’t make sense for us to put as much into the first quarter as we would in other quarters. So you’ll see us ramp that back up in 2Q. We called it out purely to keep folks from running too far ahead with enthusiasm on mobility margin improvement. We are very confident that mobility is still on a great trend for continuous margin improvement. But just from a timing standpoint, we wanted to acknowledge some of the lumpiness that you are likely to see.
Dara Khosrowshahi: Yeah. And I think in terms of Latin America and the competitive environment there, first thing I’d say, I’m assuming you’re asking about mobility. We’re seeing very healthy mobility volume growth in Latin America in the mid-20s. So we like the market and we certainly like the volumes that we’re seeing there. I would say that while I think you’re referring to Didi, they signaled a bit more capital discipline, we’re not seeing that as of yet. We see DiDi being highly competitive in the marketplace and spending into the marketplace quite aggressively. Listen, it could be temporary. It might be driven by their desire to show international growth as the China markets have slowed down a bit as the prep for the IPO, but it’s difficult for us to speculate on that.
And I’d say, we’ve seen this behavior before, Brian. And we have a very strong record of effectively responding to defend our category position. When our competitors spend up and we do the same thing, and typically, we’re much more efficient than our competition in terms of financial efficiency, network efficiency, etc. But at this point, we see DiDi leaning in, certainly not leaning out. And we are leaning in as a response, just like we do with other competitors all around the world. The good news for us is, we have a very strong P&L when you see our margins continue to increase, so we have lots of pockets of investments to reach into, but we are going to be aggressive.
Prashanth Mahendra-Rajah: Brian, just to shout off for the note last week, just to shout off for the note last week, I thought that was nice and we’re very much aligned with the more public participants in this market, the better it is for everyone.
Brian Nowak: Thank you, both.
Dara Khosrowshahi: All right. Thank you. Next question, operator?
Operator: Your next question comes from the line of Doug Anmuth with JPMorgan. Your line is open.
Douglas Anmuth: Thanks for taking the questions. I just wanted to go back to the detail that you saw in monthly trips for MAPC in 1Q. Just hoping you could unpack that a little bit in terms of LatAm and some of the holiday impact there and what that means in 2Q. And then, Dara, can you just talk more about your delivery strategy in the suburbs, the key levers to success there? And then how you think the Instacart partnership fits in as well?
Prashanth Mahendra-Rajah: Yeah. Let me take the first part of that. So again, the Mobility gross bookings growth for the first quarter was — on a constant currency basis was 26%. Included in that 26% is about 1 point, whether you look at it sequentially or on a year-over-year basis that came from us deconsolidating the non-ridesharing portion of our Careem business in December. Remember that used to be included in Mobility’s results. And when we split that out, you have it in the compares, but you don’t have it in Q1. So that’s roughly about 1 point. And then from a more seasonal impact, we’d call out two items. First, in Latin America, last year, we saw stronger demand in Brazil around Carnival that we did not see recur in Q1 of this year.
And then from a timing standpoint, both Easter and Ramadan shifted on us between the quarters. So again, on a comp basis that creates some lumpiness. But overall, I would say that we are very much remain confident on the growth of the Mobility business. Again, mid-20s year-over-year at constant currency for Q2, sort of very consistent with what was done in Q1. And the — as we mentioned in Dara’s opening remarks, audience and frequency are both strong at the overall Uber level and remain very strong at the individual LOB levels.
Dara Khosrowshahi: Yeah. And Doug, in terms of our suburban strategy for Eats, it’s very similar to our general strategy for our Delivery business on a global basis. We’re very happy about our growth rates here 17% constant currency growth rates for the second quarter in a row. Our U.S. growth rates are higher than that. The U.S. and Canada growth rates are actually higher than that, which we’re quite happy about. And generally, we are growing faster in the suburbs than we are in urban destinations, where we have higher penetration. And it’s about in the basics right. Building an audience and a brand, increasing selection, making sure we’ve got pricing right and making sure the quality of the service continues to be high. And really with the Instacart deal that we have, represents the addition of very high quality and highly targeted audience, suburban audience, to the Uber Eats ecosystems and to our merchants.
And we think that additional demand from this high end consumer is going to be welcomed by our merchants. And at the same time, we continue to increase, for example, penetration with Domino’s and a bunch of other merchants in the suburbs. So we think that we’re well positioned to continue to grow into the servers, and we definitely think that the Instacart deal puts us in a better position for growth going forward in the suburbs.
Douglas Anmuth: Thank you, both.
Dara Khosrowshahi: All right, Doug. You’re welcome. Operator, next question.
Operator: Your next question comes from the line of Eric Sheridan with Goldman Sachs. Your line is open.
