Uber Technologies Inc. | Gross bookings disclosure at Uber Technologies Inc.

Status
AGM passed
AGM date
Previous AGM date
Resolution details
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Decent work
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders ask the UBER Board of Directors to disclose information concerning the distribution of "gross bookings? between recipients and purposes served.
Supporting statement
RESOLVED: Shareholders ask the UBER Board of Directors to disclose information concerning the distribution of "gross bookings? between recipients and purposes served.  SUPPORTING STATEMENT: In an August 2020 New York Times column, UBER CEO Dara Khosrowshahi wrote: ?Since the first UBER trip 10 years ago, an existential question has shadowed us: Do we treat drivers well?? UBER?s treatment of drivers has been a controversial topic inspiring legislative efforts to protect drivers in multiple states and cities. Internationally, disputes about the treatment of drivers have led courts to declare UBER drivers to be employees, contrary to UBER?s assertion that drivers were self-employed. Unfortunately for UBER shareholders, the company fails to disclose the metrics necessary to answer this ?existential? question because UBER does not classify payments by platform users as revenue. Instead, such payments are (mostly) classified as ?gross bookings,? from which guaranteed and most incentive payments to drivers and reimbursement payments to restaurants, as well as some insurance payments, are deducted to determine revenue. Unlike rival Lyft, UBER?s large delivery segment prevents shareholders from calculating either per-trip prices for platform users or per-trip pay for drivers from the gross bookings and company-wide trip data UBER does disclose. UBER?s business model is thus unusually opaque to readers of its financial statements who cannot resolve debates over the size of UBER?s ?take rate,? how driver pay has changed over time, and whether drivers can earn a living income.  This opacity has only become more frustrating since UBER introduced ?upfront? or ?guaranteed? fares for drivers in fall 2022. Since then, UBER has achieved positive operating earnings in six consecutive quarters, the first time that has happened. But without visibility into how drivers are paid, the investing public is unable to meaningfully assess the durability of this achievement. Furthermore, many drivers have become frustrated with what they report as reduced pay resulting from the switch to upfront fares. Without transparent reporting from UBER, investors cannot assess the accuracy of these claims, and hence cannot estimate whether driver frustration may lead to further regulatory efforts or otherwise undermine UBER?s recent accomplishments. CEO Khosrowshahi was right in 2020: driver pay is an existential question for UBER, because it goes to the heart of its business model and its ability to operate profitably. Shareholders deserve enough transparency to assess UBER?s answer to this question for themselves.

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