Ross Sandler: Great. Dara, the Mobility incremental margin bounced back pretty nicely to 10%, you guys said on the last quarter, this would move around a bit. So how do we think about the outlook on that going forward. And as these new areas like reserve, which has higher margin, but taxi or shared rides has lower margin, as those come and the mix starts to change, how do we think about Mobility incrementals going forward? Thanks a lot.
Prashanth Mahendra-Rajah: Yes, good morning, Ross. I’m going to take that question. So before I jump into incremental margins, maybe I’ll just take a minute to talk about, as we go forward, we’d like to focus really on EBIT dollar growth. Given the power of the platform, the leverage that we’re generating off of our revenue growth where we’re pretty excited about the absolute EBIT dollar growth we’re going to be able to generate over the coming quarters. And we think that’s a better metric for us because it allows us to really share with you a better proxy for our ability to generate cash flow. Having said that, I do want to talk specifically to incremental margin. So you’re referring to that in Q4, incremental margins grew sequentially for the Mobility business.
And as a reminder, that can bounce around a little bit based on mix and also based on the investment decisions that we make. So I wouldn’t put too much focus on continued expansion of incremental margins. We feel very comfortable that the overall incremental margins for Uber are going to continue to be something that is going to pull the overall profitability of the company up. But remember that, we will always be making investments in areas that — such as our growth bets that you referred to, whether it be Hailables or in new geographies that are going to put some pressure on that. But overall look for continued growth in EBITDA margins. But probably a little less acceleration in incremental margins.
Operator: Your next question comes from the line of Justin Post from Bank of America. Please go ahead.
Justin Post: Great, thanks. I’ll ask a couple of things, we got a ton of questions on. First, just on Mobility pricing and ability to drive growth. Where do you think you are on that, mostly for UberX. And how do you see pricing in 2024 and do you see that maybe as a headwind for growth or any issues with that? And then second on insurance, can you just confirm, one month is in higher rates are in the March guidance and how you’re thinking about maybe the step up in 2Q if anything we need to think about. Thank you.
Dara Khosrowshahi: Yes, absolutely. So I think in terms of Mobility pricing, Justin, Mobility pricing has been relatively flat on a year-on-year basis really for the full year this year. And kind of when you go back to pre-COVID levels, we’re up now in the 20s, but compared to like a bunch of other products, we’re probably I think the cost of Uber has increased similarly to many other products. So we actively work to make sure our supply position is in the right position. We actively work to make sure our own cost levers et cetera are getting more efficient, so that we can keep price at the prices that they are now. And drive the majority of our growth in terms of transactional growth. And you can see that on overall numbers, which is overall company growing transactions 24%, and gross bookings growing 21% on a constant currency basis.
So we’re actively looking to keep a lid on price, so to speak. And then what we’re doing in terms of targeting different demographics is, there is a certain segment of folks who are willing to pay a premium for higher reliability or nicer cars and black or reserve. And then, of course, for the more cost-conscious consumer we’re offering UberX share and some of the other products as well two-wheelers, or three-wheelers and in some of the developing countries. So we don’t see price at this point as a factor that is restricting growth. And if anything you can see the growth the company continues to be very, very strong, we think growing faster than the category. And then on top of this base, of course, you have all of the new products that we’re building, U4B and Hailables, et cetera.
That portfolio is now at $11 billion run rate and it’s growing 80% on a year-on-year basis. So we think the growth vectors that we’ve got in place are strong. And we look forward to continuing to grow the topline at very healthy levels this coming year, while Delivery margins at the same time. Prashanth, you want to talk insurance.
Prashanth Mahendra-Rajah: Not really, but I’ll take that question. Yes, so as a reminder, maybe we’ll say that — remember, that we provide automotive liability insurance on behalf of our drivers. So it’s a benefit we provide to them and in turn we build that in to our pricing. Certainly this is a Space that has been facing significant cost pressure, you’re going to be seeing similar inputs from or outputs from both the personal and the commercial auto insurance companies. As a data point, we’d say — we’d point you to the latest CPI Print, which had motor vehicle insurance up 20% year-over-year. So in this more inflationary environment, we are taking a number of steps to actively manage our cost. First, I’d call out that we can use the data that we have access to in the technology environment to really drive safety technology.
And that includes things that we’ve talked about before, like reducing left turns, giving alerts to drivers when they are approaching challenging intersections, enabling both audio and video recording during trips so that there can be evidence of liability, which can be helpful to us. In addition, we have an excellent risk management program. We are — we have a good partnership with our carriers, and we maintain these relationships over a longer-term. But what is helpful there as well is, we have our own captive insurance company. And that allows us to retain more risk, where necessary, particularly in harder insurance pricing markets when it could it be for a particular geography or locality. And then lastly on the regulatory side, we’ve got a really strong policy team that is working on a reform — on reforms state-by-state.
