Uber One membership is the most efficient long-term consumer lever the company has, and Mac was wrong to prioritize short-term pricing investments over it.

5:02world. I mean, we're not at like Amazon Prime or Costco levels, but we're we're not we're within getting to within spitting distance. And from a company lever perspective, it's highly efficient. And when we look at efficiency, we usually look on like if I put a dollar in, you know, what am I getting back in terms of top line? And it's one of the best levers we have. And

5:20the longer we can measure it, the more efficient it gets and the better it stacks up versus other levers. So, you're like, "Okay, Mac, well, like how did you get that wrong? Like if that's what the data showed you, then why why weren't you just sort of all in on membership?" When And when he says like When I say I wasn't all in on membership, what I mean by that is like,

5:36you know, I would constrain the capital envelope that we would have in the mobility business to invest in this. So, if I had 40 million bucks next quarter to invest, you know, my gut was always like put as much of that into pricing as you can, or put as much of that into driver supply to prove the health of the marketplace so that service is more reliable because like ridesharing at the

5:53end of the day is price, reliability, and safety. That's all it is. That's what it was 10 years ago. I think that's what it's going to be 10 years from now even when it's autonomous vehicles. It's like price, reliability, safety. Um and putting money into something like membership where people get uh suite of benefits or uh part of which is price, but a whole other host of things

6:15like you're explicitly choosing not to put that dollar back into price. And that that's just the tension. And I probably was short-termist in my thinking there. >> You said that about dollar leverage, putting in dollars to what you get out. What is the single most efficient dollar in to dollar out business for you today? >> I think membership is the most efficient long-term consumer lever that we've got.

6:39Uh and the reason for that is like ultimately we we are looking at like IGB as a critical input metric for any dollar I deploy. So what >> What is IGB? >> Incremental gross bookings. Think of it as incremental revenue. Right? Like if I put a dollar of incentive into the market, if I give Harry a dollar and I give a million other consumers a dollar discount, how much

7:02incremental revenue do I get back of that? And by the way, like the ROI on that is different because ROI is like if I get $2 of revenue back from Harry by offering you a dollar, um you might be like, okay, that's great. That's uh you know, a two to one ratio. But actually we only make 7 1/2% of your dollar from a profit margin perspective, so you're still negative

7:20ROI, but you make those sorts of investments to grow the platform over time because you know, I've increased Harry's engagement and then your LTV goes up over time. So um we're we're typically looking at like a very baseline IGB type or incremental revenue type metric for any any uh any dollar we're putting into the marketplace. Membership just gets better over time. The reason it gets better over time is,