 Uber reported a 21% YoY growth in trips to 2,765mn and a 14% YoY increase in monthly active platform consumers (MAPC) to 156mn in 2Q24, consistent with the growth rate seen in 1Q. The company’s frequency increased by 6% YoY. Gross bookings reached $39.95bn, reflecting a 19% YoY increase. Uber’s revenue for 2Q24 reached $10.7bn, up 16% YoY in 2Q24. The platform supported a record 7.4mn monthly drivers and couriers in 2Q and reported strong engagement from both consumers and drivers. Driver earnings grew by 23% YoY in 2Q, and supply hours per driver reached a record high. Uber’s partnership agreement with BYD, a leading Chinese EV producer, aims to bring more electric vehicles (EVs) to the platform, offering the best pricing and financing options for drivers. Uber also added new services, such as Uber Caregiver, scheduled UberX Share rides, and Uber Shuttle to the platform, with 35% of consumers using multiple products in 2Q. Bookings in the Mobility segment were up 23% YoY (27% YoY in constant currency) to $20.55bn in 2Q, generating $6.13bn in net revenue for the company, a 25% YoY increase (30% YoY in contract currency). Mobility segment EBITDA increased by 34% YoY to $1,567mn in 2Q, with the strongest growth in Mobility bookings seen in Brazil, Australia, and India. Uber for Business Gross Bookings also accelerated, according to the company. The Delivery business posted a 17% YoY growth on a constant-currency basis to $18.13bn, generating $3.29bn in net revenue and $588mn in adjusted EBITDA. Uber has a strong merchant selection with over 1mn active merchants, showing a 13% YoY increase. The company noted that merchant penetration remains low and could increase by over 10% per year for many years, driving consumer conversion and reducing the cost per transaction. The cost of delivery was reduced through merchant-funded offers, while the growth of advertising revenue is also improving the company’s economics. The Grocery and Retail segment saw improved reliability, with a 9% YoY increase in active merchants’ number and expanded selection. Freight Gross Bookings remained flat YoY, reflecting sector weakness. Uber enhanced its platform with upfront pricing and automated tendering for spot freight fulfillment. Uber’s advertising business has reached a revenue run rate of over $1bn. The company generated $1.7bn in free cash flow in 2Q. The 12-month basis FCF was $4.8bn compared to an Adjusted EBITDA of $5.3bn, showing c.90% conversion. Uber reduced stock-based compensation by 9.7% YoY to $455mn in 2Q ($484mn in 1Q). Uber reported $6.3bn in unrestricted cash, cash equivalents, and short-term investment at the end of 2Q, and $6.2bn in equity stakes. Uber agreed to acquire Delivery Hero’s foodpanda delivery business in Taiwan for $950mn in cash, and $500mn in new share issue of Delivery Hero in 2Q. Uber repurchased $325mn of its own stock in 2Q. The basic share dilution was 3.2% YoY in 2Q.  Uber continues its efforts to increase the penetration of autonomous vehicles (AV). In 2Q24, the company reported the growth of AV trips by 6x YoY, driven by 10 partnerships across its Mobility, Delivery, and Freight segments. Uber’s platform enables seamless AV experiences and provides high utilization rates for AVs. Among the significant developments, Uber launched airport drop-offs with Waymo at Phoenix Sky Harbor International Airport. Uber noted that the utilization rates for AV on its platform can be higher than what AV players might achieve independently. AV players require higher utilization rates to improve their economics without incurring large costs for customer acquisition - something Uber’s platform can facilitate. This mutually beneficial cooperation looks promising for both AV players and Uber. Uber projects gross bookings in the range of $40.25bn to $41.75bn, an 18-23% YoY increase on a constant currency basis, and Adjusted EBITDA to reach $1.58-1.68bn in 3Q24. Uber’s audience growth of 14% and frequency of 6% support our projections for the year. We keep our forecasts unchanged and maintain our 12-month price target of $76.1 per share, with our BUY rating unchanged.