"Even at $0.21 that’s ~$2B of promotional expense that Uber can still remove from the P/L." What's the reason to believe promotional expense eventually goes to zero? It's seems like steady state for both rideshare and delivery is likely to contain some form of discounting through consumer incentives.
Thanks. Really enjoy the analysis. Do you have a sense on why Uber keeps falling short on delivery? It seems like all the Grubhub share loss is going straight to DD. While you would expect that Uber being a platform with more to offer and ability to cross-sell, it should be the other way around. Plus, Uber One should be a more valuable proposition to users than DashPass. Often Selection is raised as the key advantage of DD, but it feels Uber should have had plenty of time to catch-up on that.
"Even at $0.21 that’s ~$2B of promotional expense that Uber can still remove from the P/L." What's the reason to believe promotional expense eventually goes to zero? It's seems like steady state for both rideshare and delivery is likely to contain some form of discounting through consumer incentives.
Thanks. Really enjoy the analysis. Do you have a sense on why Uber keeps falling short on delivery? It seems like all the Grubhub share loss is going straight to DD. While you would expect that Uber being a platform with more to offer and ability to cross-sell, it should be the other way around. Plus, Uber One should be a more valuable proposition to users than DashPass. Often Selection is raised as the key advantage of DD, but it feels Uber should have had plenty of time to catch-up on that.