What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2022-02-24 compared with 2021-03-01 · 857 added, 782 removed, 1821 unchanged (47% of the section changed)

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INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE

Report of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm (PCAOB ID 238 )

Consolidated Financial Statements

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Consolidated Statements of Operations

Consolidated Statements of Comprehensive Income (Loss)

Consolidated Statements of Mezzanine Equity and Equity (Deficit)

Consolidated Statements of Comprehensive Loss

Consolidated Statements of Redeemable Non-Controlling Interests and Equity

Consolidated Statements of Cash Flows

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Schedule II - Valuation and Qualifying Accounts for the Years Ended December 31, 2019, 2020 and 2021

The supplementary financial information required by this Item 8 is included in Item 7 under the caption “Selected Quarterly Financial Data.”

Report of Independent Registered Public Accounting Firm

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We have audited the accompanying consolidated balance sheets of Uber Technologies, Inc.

and its subsidiaries (the “Company”) as of December 31, 2020 and 2019, and the related consolidated statements of operations, of comprehensive income (loss), of mezzanine equity and equity (deficit) and of cash flows for each of the three years in the period ended December 31, 2020, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the “consolidated financial statements”).

and its subsidiaries (the “Company”) as of December 31, 2021 and 2020, and the related consolidated statements of operations, of comprehensive loss, of redeemable non-controlling interests and equity and of cash flows for each of the three years in the period ended December 31, 2021, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the “consolidated financial statements”).

We also have audited the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

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Changes in Accounting Principles

As discussed in Note 1 to the consolidated financial statements, the Company changed the manner in which it accounts for cumulative payments to Drivers in excess of cumulative revenue from Drivers in 2020 and the manner in which it accounts for leases in 2019.

As discussed in Note 1 to the consolidated financial statements, the Company changed the manner in which it accounts for convertible instruments and contracts in an entity’s own equity in 2021 and the manner in which it accounts for leases in 2019.

Basis for Opinions

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We believe that our audits provide a reasonable basis for our opinions.

As described in Management’s Report on Internal Control over Financial Reporting, management has excluded Careem Inc., Cornershop Global LLC, Routematch Holdings, Inc.

and Postmates Inc.

(the “acquired entities”) from its assessment of internal control over financial reporting as of December 31, 2020 because they were acquired by the Company in purchase business combinations during 2020.

We have also excluded the acquired entities from our audit of internal control over financial reporting.

The acquired entities are wholly-owned or majority-owned subsidiaries whose total assets and total revenues excluded from management’s assessment and our audit of internal control over financial reporting collectively represent approximately 1% and 2%, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2020.

As described in Management’s Report on Internal Control over Financial Reporting, management has excluded The Drizly Group, Inc.

(“Drizly”) and Tupelo Parent, Inc.

(“Transplace”) from its assessment of internal control over financial reporting as of December 31, 2021 because they were acquired by the Company in purchase business combinations during 2021.

We have also excluded Drizly and Transplace from our audit of internal control over financial reporting.

Drizly and Transplace are wholly-owned subsidiaries whose total assets and total revenues excluded from management’s assessment and our audit of internal control over financial reporting collectively represent approximately 3% and 4%, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2021.

Definition and Limitations of Internal Control over Financial Reporting

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The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Presentation of Mobility and Delivery Revenue and Related Discounts and Promotions

As described in Notes 1 and 2 to the consolidated financial statements, the Company derives its revenues principally from Drivers’ and Merchants’ use of the Company’s platform, on-demand lead generation, and related services in connection with Mobility and Delivery services.

Presentation of Mobility and Delivery Revenue Agreements, Including Incentives, Discounts and Promotions to Drivers, Merchants and End-Users

Management applies judgment in determining whether the Company is the principal or agent in transactions with Drivers, Merchants and end-users.

This determination impacts the presentation of revenue on a gross or net basis as well as the presentation of incentives provided to Drivers and Merchants and discounts and promotions offered to end-users, to the extent they are not customers.

The Company’s Mobility and Delivery revenue was $9,993 million and discounts, loyalty programs, promotions, refunds, and credits provided to end-users who are not customers totaled $ 2.0 billion for the year ended December 31, 2020.

The principal considerations for our determination that performing procedures relating to the presentation of Mobility and Delivery revenue and related discounts and promotions is a critical audit matter are the significant judgment by management in assessing the presentation of revenue on a gross versus net basis, analyzing the role of the Company in the transactions and the related transaction attributes, including the type of discounts and promotions applied, utilized or earned by the end-user in the transaction and assessing their presentation, which in turn led to a high degree of auditor judgment, subjectivity and effort in performing our audit procedures to evaluate whether transaction attributes were appropriately analyzed and presented by management.

For the year ended December 31, 2021, the Company’s Mobility and Delivery revenue, net of incentives, was $15.3 billion and discounts, loyalty programs, promotions, refunds, and credits provided to end-users who are not customers totaled $ 2.4 billion, of which a significant portion relates to discounts and promotions.

The principal considerations for our determination that performing procedures relating to the presentation of Mobility and Delivery revenue agreements, including incentives, discounts and promotions to Drivers, Merchants, and end-users is a critical audit matter are the significant judgment by management in assessing the presentation of revenue on a gross or net basis, as well as the presentation of incentives, discounts and promotions offered to Drivers, Merchants, and end-users, which in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence relating to whether transaction attributes were appropriately analyzed and presented by management.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to the Company’s revenue recognition process, including controls over the presentation of Mobility and Delivery revenue and discounts and promotions.

These procedures also included, among others, testing, on sample basis, trip transaction attributes and assessing management’s classification by evaluating the Company’s role in the transaction, examining documentation related to arrangement terms, driver statements and rider receipts, discounts and promotions and assessing the impact of those terms and attributes on revenue presentation and income statement classification.

These procedures also included, among others, testing, on a sample basis, trip transaction attributes and assessing management’s classification of new or changed agreements by examining documentation related to the agreement terms, driver statements, rider receipts, and discount, promotion and incentive terms, and assessing the impact of those terms and attributes on the presentation of revenue and income statement classification.

Valuation of Insurance Reserves

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These reserves are continually reviewed by management and adjusted as experience develops and new information becomes known.

As disclosed by management, the Company’s insurance reserves as of December 31, 2020 were $3,466 million.

The principal considerations for our determination that performing procedures relating to the valuation of insurance reserves is a critical audit matter are the significant judgment by management when developing their estimate of the insurance reserves, which in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence relating to the various actuarial methods and the significant assumptions related to loss development patterns and expected loss costs.

Also, the audit effort involved the use of professionals with specialized skill and knowledge.

The Company’s short-term and long-term insurance reserves as of December 31, 2021 totaled $4.0 billion.

The principal considerations for our determination that performing procedures relating to the valuation of insurance reserves is a critical audit matter are the significant judgment by management when developing the estimate of the insurance reserves, which in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence relating to the actuarial methods and management’s significant assumptions related to loss development patterns and expected loss costs.

The audit effort also involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to the Company’s valuation of insurance reserves, including controls over the development of the significant assumptions related to loss development patterns and expected loss costs.

These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in (i) developing, for selected reserve components, an independent actuarial estimate of the insurance reserves, and comparison of this independent estimate to management’s actuarially determined reserves, and (ii) testing, for other selected reserve components, management’s process for estimating the insurance reserves.

Developing the independent estimate

involved testing the completeness and accuracy of data provided by management and independently developing the loss development patterns and expected loss costs.

Testing management’s process for estimating the insurance reserves involved evaluating the appropriateness of management’s actuarial methods, evaluating the reasonableness of the loss development patterns and expected loss costs used in those methods, and testing the completeness and accuracy of data provided by management.

These procedures also included, among others, the involvement of professionals with specialized skill

and knowledge to assist in (i) developing, for selected reserve components, an independent actuarial estimate of the insurance reserves, and comparison of this independent estimate to management’s actuarially determined reserves, and (ii) testing, for other selected reserve components, management’s process for estimating the insurance reserves.

Developing the independent estimate involved independently developing the loss development patterns and expected loss costs and testing the completeness and accuracy of data provided by management.

Testing management’s process for estimating the insurance reserves involved evaluating the appropriateness of management’s actuarial methods, evaluating the reasonableness of the significant assumptions used by management related to loss development patterns and expected loss costs used in those methods, and testing the completeness and accuracy of data used by management.

/s/ PricewaterhouseCoopers LLP

San Francisco, California

March 1, 2021

February 24, 2022

We have served as the Company’s auditor since 2014.

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Total assets $ 33,252 $ 38,774

Liabilities, mezzanine equity and equity

Liabilities, redeemable non-controlling interests and equity

Accounts payable $ 235 $ 860

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Commitments and contingencies (Note 15)

Mezzanine equity

Redeemable non-controlling interests 787 204

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Total equity 12,967 15,145

Total liabilities, mezzanine equity and equity $ 31,761 $ 33,252

Total liabilities, redeemable non-controlling interests and equity $ 33,252 $ 38,774

The accompanying notes are an integral part of these consolidated financial statements.

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Year Ended December 31,

2019 2020 2021

Revenue $ 13,000 $ 11,139 $ 17,455

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Other income (expense), net 722 ( 1,625 ) 3,292

Income (loss) before income taxes and loss from equity method investments 1,312 ( 8,433 ) ( 6,946 )

Loss before income taxes and loss from equity method investments ( 8,433 ) ( 6,946 ) ( 1,025 )

Provision for (benefit from) income taxes 45 ( 192 ) ( 492 )

Loss from equity method investments ( 34 ) ( 34 ) ( 37 )

Net income (loss) including non-controlling interests 987 ( 8,512 ) ( 6,788 )

Net loss including non-controlling interests ( 8,512 ) ( 6,788 ) ( 570 )

net loss attributable to non-controlling interests, net of tax ( 6 ) ( 20 ) ( 74 )

Net income (loss) attributable to Uber Technologies, Inc.

Net loss attributable to Uber Technologies, Inc.

$ ( 8,506 ) $ ( 6,768 ) $ ( 496 )

Net income (loss) per share attributable to Uber Technologies, Inc.

Net loss per share attributable to Uber Technologies, Inc.

common stockholders:

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Diluted $ ( 6.81 ) $ ( 3.86 ) $ ( 0.29 )

Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:

Weighted-average shares used to compute net loss per share attributable to common stockholders:

Basic 1,248,353 1,752,960 1,892,546

Diluted 1,248,353 1,752,960 1,895,519

(1) Our revenue and cost of revenue, exclusive of depreciation and amortization, have been retrospectively adjusted to reflect the implementation of our new accounting policy adopted in the fourth quarter of 2020.

Refer to Note 1 - Description of Business and Summary of Significant Accounting Policies for further information on the change in accounting policy.

The accompanying notes are an integral part of these consolidated financial statements.

UBER TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In millions)

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2019 2020 2021

Net income (loss) including non-controlling interests $ 987 $ ( 8,512 ) $ ( 6,788 )

Net loss including non-controlling interests $ ( 8,512 ) $ ( 6,788 ) $ ( 570 )

Other comprehensive income (loss), net of tax:

Change in foreign currency translation adjustment ( 3 ) ( 350 ) 57

Change in unrealized gain on investments in available-for-sale securities 40 4 2

Change in unrealized gain (loss) on investments in available-for-sale securities 4 2 ( 46 )

Other comprehensive income (loss), net of tax 1 ( 348 ) 11

Comprehensive income (loss) including non-controlling interests 802 ( 8,511 ) ( 7,136 )

Comprehensive loss including non-controlling interests ( 8,511 ) ( 7,136 ) ( 559 )

comprehensive loss attributable to non-controlling interests ( 6 ) ( 20 ) ( 74 )

Comprehensive income (loss) attributable to Uber Technologies, Inc.

Comprehensive loss attributable to Uber Technologies, Inc.

$ ( 8,505 ) $ ( 7,116 ) $ ( 485 )

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UBER TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND EQUITY (DEFICIT)

(In millions, except share amounts which are reflected in thousands)

Redeemable Non-Controlling Interest Redeemable Convertible Preferred Stock Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Equity (Deficit)

Shares Amount Shares Amount

Balance as of December 31, 2017 $ — 863,305 $ 12,210 443,394 $ — $ 320 $ ( 3 ) $ ( 8,874 ) $ ( 8,557 )

Issuance of Series G redeemable convertible preferred stock, net of issuance costs — 41,007 2,000 — — — — — —

Repurchase of Series G redeemable convertible preferred stock from Didi — ( 754 ) ( 37 ) — — 4 — — 4

Exercise of warrants — 54 3 34 — 1 — — 1

Lapsing of repurchase option related to Series E redeemable convertible preferred stock issued to a non-employee service provider — — 1 — — — — — —

Repurchase of outstanding shares — ( 5 ) — ( 2,553 ) — — — 13 13

Exercise of stock options — — — 11,809 — 27 — — 27

Issuance of restricted common stock — — — 514 — 21 — — 21

Repurchase of unvested early-exercised stock options — — — ( 142 ) — — — — —

Reclassification of early-exercised stock options from liability, net — — — — — 1 — — 1

Stock-based compensation — — — — — 125 — — 125

Issuance and repayment of employee loans collateralized by outstanding common stock — — — — — 4 — ( 1 ) 3

Issuance of common stock as consideration for investment and acquisition — — — 4,133 — 144 — — 144

Issuance of non-controlling interest 10 — — — — ( 10 ) — — ( 10 )

Deferred tax benefit arising from acquisition of previously consolidated entity — — — — — 31 — — 31

Unrealized gain on investments in available-for-sale securities, net of tax — — — — — — 40 — 40

Foreign currency translation adjustment — — — — — — ( 225 ) — ( 225 )

Net income (loss) ( 10 ) — — — — — — 997 997

Balance as of December 31, 2018 $ — 903,607 $ 14,177 457,189 $ — $ 668 $ ( 188 ) $ ( 7,865 ) $ ( 7,385 )

The accompanying notes are an integral part of these consolidated financial statements.

UBER TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND EQUITY (DEFICIT)

CONSOLIDATED STATEMENTS OF REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

(In millions, except share amounts which are reflected in thousands)

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UBER TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND EQUITY

CONSOLIDATED STATEMENTS OF REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

(In millions, except share amounts which are reflected in thousands)

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UBER TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

(In millions, except share amounts which are reflected in thousands)

Redeemable Non-Controlling Interest Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Non-redeemable Non-Controlling Interests Total Equity

Shares Amount

Balance as of December 31, 2020 $ 787 1,849,794 $ — $ 35,931 $ ( 535 ) $ ( 23,130 ) $ 701 $ 12,967

Exercise of stock options — 9,440 — 101 — — — 101

Stock-based compensation — — — 1,204 — — — 1,204

Reclassification of the equity component of 2025 Convertible Notes to liability upon adoption of ASU 2020-06 — — — ( 243 ) — — — ( 243 )

Reclassification of share-based award liability to additional paid-in capital — — — 4 — — — 4

Issuance of common stock under the Employee Stock Purchase Plan — 2,770 — 107 — — — 107

Issuance of common stock as consideration for acquisitions — 19,377 — 929 — — — 929

Issuance of common stock for settlement of Careem Convertible Notes — 4,225 — 232 — — — 232

Issuance of common stock for settlement of contingent consideration liability — 2,252 — 102 — — — 102

Issuance of restricted stock awards, subject to repurchase, in connection with acquisition of non-controlling interest — 4,641 — — — — — —

Re-measurement of non-controlling interest 1,052 — — ( 1,058 ) — — — ( 1,058 )

Acquisition of non-controlling interests ( 1,194 ) 20,641 — 1,327 — — — 1,327

Recognition of non-controlling interest upon sale of Freight Holding preferred stock — — — — — — 675 675

Derecognition of non-controlling interests upon divestiture ( 356 ) — — — — — ( 701 ) ( 701 )

Issuance of common stock for settlement of RSUs — 36,703 — — — — — —

Shares withheld related to net share settlement — ( 527 ) — ( 28 ) — — — ( 28 )

Unrealized loss on investments in available-for-sale securities, net of tax — — — — ( 46 ) — — ( 46 )

Foreign currency translation adjustment — — — — 57 — — 57

Net income (loss) ( 85 ) — — — — ( 496 ) 12 ( 484 )

Balance as of December 31, 2021 $ 204 1,949,316 $ — $ 38,608 $ ( 524 ) $ ( 23,626 ) $ 687 $ 15,145

The accompanying notes are an integral part of these consolidated financial statements.

UBER TECHNOLOGIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

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Cash flows from operating activities

Net income (loss) including non-controlling interests $ 987 $ ( 8,512 ) $ ( 6,788 )

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Net loss including non-controlling interests $ ( 8,512 ) $ ( 6,788 ) $ ( 570 )

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization 472 575 902

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Gain on extinguishment of convertible notes and settlement of derivatives ( 444 ) — —

Gain from sale of investments — — ( 413 )

Gain on business divestitures, net — ( 204 ) ( 1,684 )

Deferred income taxes ( 88 ) ( 266 ) ( 692 )

Revaluation of derivative liabilities 501 ( 58 ) —

Accretion of discount on long-term debt 318 82 45

Payment-in-kind interest 71 10 —

Impairment of debt and equity securities — 1,690 —

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Unrealized (gain) loss on debt and equity securities, net ( 2 ) 125 ( 1,142 )

Gain on forfeiture of unvested warrants and related share repurchases ( 152 ) — —

Unrealized foreign currency transactions 16 48 38

Other 60 ( 19 ) ( 43 )

Change in assets and liabilities, net of impact of business acquisitions and disposals:

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Cash flows from investing activities

Proceeds from sale and disposal of property and equipment 369 51 3

Purchases of property and equipment ( 588 ) ( 616 ) ( 298 )

Purchases of equity method investments ( 412 ) — —

Purchases of non-marketable equity securities ( 100 ) ( 10 ) ( 982 )

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Proceeds from maturities and sales of marketable securities 2 1,360 2,291

Proceeds from sale of non-marketable equity securities — — 500

Proceeds from sale of equity method investments — — 1,000

Proceeds from business disposal, net of cash divested 293 — —

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Return of capital from equity method investee — 91 —

Purchase of notes receivable — — ( 185 )

Purchase of notes receivables — ( 185 ) ( 297 )

Other investing activities 51 63 12

Net cash used in investing activities ( 790 ) ( 2,869 ) ( 1,201 )

Cash flows from financing activities

Proceeds from issuance of common stock upon initial public offering, net of offering costs 7,973 — —

Taxes paid related to net share settlement of equity awards ( 1,573 ) ( 17 ) ( 27 )

Proceeds from issuance of common stock related to private placement 500 — —

UBER TECHNOLOGIES, INC.

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2019 2020 2021

Cash flows from financing activities

Proceeds from issuance of common stock upon initial public offering, net of offering costs — 7,973 —

Taxes paid related to net share settlement of equity awards — ( 1,573 ) ( 17 )

Proceeds from issuance of common stock related to private placement — 500 —

Proceeds from issuance of subsidiary preferred stock units — 1,000 247

Proceeds from issuance and sale of subsidiary preferred stock units 1,000 247 675

Proceeds from the issuance of common stock under the Employee Stock Purchase Plan 49 125 107

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Principal repayment on Careem Notes — ( 891 ) ( 307 )

Principal repayment on revolving lines of credit ( 491 ) — —

Principal payments on capital and finance leases ( 89 ) ( 138 ) ( 224 )

Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs 1,750 — —

Repurchase of stock subject to put options related to Yandex — ( 74 ) —

Principal payments on finance leases ( 138 ) ( 224 ) ( 226 )

Other financing activities ( 34 ) 38 101

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Conversion of convertible notes to common stock upon initial public offering 4,229 — —

Financed construction projects 177 — —

Capital and finance lease obligations 165 251 196

Settlement of litigation through issuance of redeemable convertible preferred stock 250 — —

Conversion of convertible notes to common stock related to Careem — — 232

Finance lease obligations 251 196 184

Common stock issued in connection with acquisitions 9 3,898 1,868

Ownership interest in MLU B.V.

received in connection with the disposition of Uber Russia/CIS operations 1,410 — —

Grab debt security received in exchange for the sale of Southeast Asia operations 2,275 — —

Ownership interest in Zomato received in exchange for the divestiture of Uber Eats India operations — — 171

Issuance of unsecured convertible notes in connection with Careem acquisition — — 1,228

Holdback amount of unsecured convertible notes in connection with Careem acquisition — — 423

Ownership interest received in exchange for divestitures — 171 1,018

Issuance of Careem Notes including the holdback amount — 1,634 —

The accompanying notes are an integral part of these consolidated financial statements.

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Uber develops and operates proprietary technology applications supporting a variety of offerings on its platform (“platform(s)” or “Platform(s)”).

Uber connects consumers (“Rider(s)”) with independent providers of ride services (“Mobility Driver(s)”) for ridesharing services, and connects Riders and other consumers (“Eaters”) with restaurants, grocers and other stores (collectively, “Merchants”) with delivery service providers (“Delivery People”) for meal preparation, grocery and other delivery services.

Riders and Eaters are collectively referred to as “end-user(s)” or “consumer(s).” Mobility Drivers and Delivery People are collectively referred to as “Driver(s).” Uber also connects consumers with public transportation networks.

Uber connects consumers (“Rider(s)”) with independent providers of ride services (“Mobility Driver(s)”) for ridesharing services, and connects Riders and other consumers (“Eaters”) with restaurants, grocers and other stores (collectively, “Merchants”) with delivery service providers (“Couriers”) for meal preparation, grocery and other delivery services.

Riders and Eaters are collectively referred to as “end-user(s)” or “consumer(s).” Mobility Drivers and Couriers are collectively referred to as “Driver(s).” Uber also connects consumers with public transportation networks.

Uber uses this same network, technology, operational excellence and product expertise to connect shippers with carriers in the freight industry.

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We consolidate our wholly-owned subsidiaries and majority-owned subsidiaries over which we exercise control, and variable interest entities (“VIE”) where we are deemed to be the primary beneficiary.

Refer to Note 16 - Variable Interest Entities ("VIEs") for further information.

Refer to Note 16 – Variable Interest Entities for further information.

All intercompany balances and transactions have been eliminated.

Change in Accounting Policy

During the fourth quarter of 2020, we changed our accounting policy related to the presentation of cumulative payments to Drivers in excess of cumulative revenue from Drivers.

Our policy for the presentation of these excess cumulative payments has changed from presenting them within cost of revenue, exclusive of depreciation and amortization, to presenting them as a reduction of revenue in our consolidated statements of operations.

As our business has evolved, we believe our new presentation policy is preferable as it better reflects the financial performance of transactions with customers across all of our businesses and provides more clarity about changes in both revenue and cost of revenue, exclusive of depreciation and amortization, resulting in improved financial reporting and alignment with financial information used internally by management.

In accordance with generally accepted accounting principles, all periods presented below have been retrospectively adjusted to reflect the effects of the change to revenue and cost of revenue, exclusive of depreciation and amortization.

There was no net impact to loss from operations, net income (loss) attributable to Uber Technologies, Inc., or net income (loss) per share for any periods presented.

The consolidated balance sheets, consolidated statements of mezzanine equity and equity (deficit), and the consolidated statements of cash flows are not affected by this change in accounting policy.

The effect of the change is as follows:

Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020

Previously Reported Effect of Change As Adjusted Previously Reported Effect of Change As Adjusted Computed Under Previous Method Effect of Change As Reported

Revenue $ 11,270 ( 837 ) $ 10,433 $ 14,147 ( 1,147 ) $ 13,000 $ 12,422 ( 1,283 ) $ 11,139

Cost of revenue, exclusive of depreciation and amortization 5,623 ( 837 ) 4,786 7,208 ( 1,147 ) 6,061 6,437 ( 1,283 ) 5,154

Use of Estimates

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On an ongoing basis, management evaluates estimates, including, but not limited to:

the incremental borrowing rate (“IBR”) applied in lease accounting;

fair values of investments and other financial instruments (including the measurement of credit or impairment losses);

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Our operations have historically been funded through equity and debt financings.

While management currently anticipates that our available cash and cash equivalents, short-term investments, and revolving credit facility will be sufficient to meet our operational cash needs for at least the next twelve months from the date of issuance of these financial statements, additional capital may need to be raised or additional indebtedness incurred to continue to fund the operations and other strategic initiatives.

We may not be able to obtain additional financing on favorable terms, if at all, or our ability to incur additional indebtedness may be restricted by the terms of our existing debt instruments.

While management currently anticipates that our available cash and cash equivalents, and revolving credit facility will be sufficient to meet our operational cash needs for at least the next twelve months from the date of issuance of these financial statements, additional capital may need to be raised or additional indebtedness incurred to continue to fund the operations and other strategic initiatives.

We may not be able to obtain additional

financing on favorable terms, if at all, or our ability to incur additional indebtedness may be restricted by the terms of our existing debt instruments.

In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic.

COVID-19 has rapidly impacted market and economic conditions globally.

In an attempt to limit the spread of the virus, various governmental restrictions have been implemented, including business activities and travel restrictions, and “shelter-at-home” orders, that have had an adverse impact on our business and operations by reducing, in particular, the global demand for Mobility offerings.

In light of the evolving nature of COVID-19 and the uncertainty it has produced around the world, it is not possible to predict the COVID-19 pandemic’s cumulative and ultimate impact on our future business operations, results of operations, financial position, liquidity, and cash flows.

The extent of the impact of the pandemic on our business and financial results will depend largely on future developments, including the duration of the spread of the outbreak both globally and within the United States, including whether there will be further resurgences of COVID-19 in various regions, the distribution of vaccines in various regions, the impact on capital, foreign currencies exchange and financial markets, governmental or regulatory orders that impact our business and whether the impacts may result in permanent changes to our end-user’ behavior, all of which are highly uncertain and cannot be predicted.

In light of the evolving nature of COVID-19 and the uncertainty it continues to produce around the world, it is not possible to predict the COVID-19 pandemic’s cumulative and ultimate impact on our future business operations, results of operations, financial position, liquidity, and cash flows.

The extent of the impact of the pandemic on our business and financial results will depend largely on future developments, including:

the duration of the spread of the outbreak (both globally and within the United States), including whether there will be further resurgences of the outbreak or variants of the virus;

the distribution of vaccines in various regions;

the impact on capital, foreign currencies exchange and financial markets;

governmental or regulatory orders that impact our business;

and whether the impacts may result in permanent changes to our end-users’ behavior, all of which are highly uncertain and cannot be predicted.

Cash and Cash Equivalents

Cash and cash equivalents as of December 31, 2019 and 2020 consisted of cash held in checking and savings accounts as well as investments in money market funds, commercial paper, U.S.

Cash and cash equivalents consist of cash held in checking and savings accounts as well as investments in money market funds, commercial paper, U.S.

government and agency securities, and corporate bonds.

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Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents is pledged as security for letters of credit or other collateral amounts established by us for certain insurance policies and also include cash and cash equivalents that are unavailable for immediate use due to legal and/or contractual restrictions.

Restricted cash and cash equivalents is classified as current and non-current assets based on the contractual or estimated term of the remaining restriction.

Restricted cash and cash equivalents are pledged as security for letters of credit or other collateral amounts established by us for certain insurance policies and also include cash and cash equivalents that are unavailable for immediate use due to legal and/or contractual restrictions.

Restricted cash and cash equivalents are classified as current and non-current assets based on the contractual or estimated term of the remaining restriction.

The reconciliation of cash and cash equivalents and restricted cash and cash equivalents to amounts presented in the consolidated statements of cash flows are as follows (in millions):

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These funds, previously held in a trust account, were withdrawn by James River during the fourth quarter of 2019 upon notice of cancellation of their insurance policies (primarily auto insurance policies) issued to one of our subsidiaries.

The funds continue to serve as collateral for us and our subsidiary’s current and future claim settlement obligations under the indemnification agreements for these insurance policies as included in insurance reserves on the consolidated balance sheets .

Accordingly, the amount withdrawn is presented as collateral held by insurer on the consolidated balance sheets as of December 31, 2019 and 2020.

As of December 31, 2020, the funds served as collateral for us and our subsidiary’s current and future claim settlement obligations under the indemnification agreements for these insurance policies as included in insurance reserves on the consolidated balance sheet .

Accordingly, the amount withdrawn is presented as collateral held by insurer on the consolidated balance sheet as of December 31, 2020.

During the third quarter of 2021 , in connection with the legacy auto insurance transfer as described below, James River returned funds, previously presented as collateral held by insurer, to the trust account where the funds were previously held.

Accordingly, the funds were reclassified from c ollateral held by insurer to non-current restricted cash and cash equivalents on our consolidated balance sheet as of December 31, 2021.

Legacy Auto Insurance Transfer

On September 27, 2021, Aleka Insurance, Inc., our wholly-owned captive insurance subsidiary, entered into a Loss Portfolio Transfer Reinsurance Agreement (the “LPTA”) with James River effective July 1, 2021.

Pursuant to the LPTA, our captive insurance subsidiary reinsured certain automobile liability insurance risks relating to activity on our platform between 2013 and 2019 in exchange for payment by James River to our captive insurance subsidiary of a premium in the amount of $ 345 million (“Premium”).

Subsequent to the LPTA, we retain substantially all of the liabilities on these policies when taken together with previous risk transfer arrangements.

In connection with the LPTA, claims currently administered by James River will be transferred to a third-party claims administrator for ongoing handling (the “Transferred Claims”) at our expense.

The liabilities associated with the Transferred Claims were re-evaluated as of September 30, 2021, and adverse development was recognized on certain of those liabilities.

During the third quarter of 2021, we recognized a $ 103 million charge in our consolidated statement of operations consisting of the difference between

the Premium and the assumed liabilities (including the cost of future claims administration), expenses associated with the LPTA, and the adverse development on the Transferred Claims.

Accounts Receivable and Allowance for Doubtful Accounts

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Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date.

The interest rate used to determine the present value of the future lease payments is our IBR, because the interest rate implicit in most of our leases is not readily determinable.

The IBR is a hypothetical rate based on our understanding of what our credit rating would be to borrow and resulting interest the we would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis.

The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate (“IBR”), because the interest rate implicit in most of our leases is not readily determinable.

The IBR is a hypothetical rate based on our understanding of what our credit rating would be to borrow and resulting interest we would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis.

Lease payments may be fixed or variable;

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depreciation on a straight-line basis over the lease term and interest using the effective interest method.

As of December 31, 2019 and 2020, less than 13 % and 12 % of our operating lease ROU assets related to leased assets were outside of the U.S., respectively.

As of December 31, 2020 and 2021, less than 12 % of our operating lease ROU assets related to leased assets were outside of the U.S.

We account for acquisitions of entities or asset groups that qualify as businesses in accordance with ASC 805, “Business Combinations” (“ASC 805”).

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Accounting for our equity securities varies depending on the marketability of the security and the type of investment.

We have elected to measure the majority of our investments in non-marketable equity securities at cost, with remeasurements to fair value only upon the occurrence of observable price changes in orderly transactions for the identical or similar securities of the same issuer, or in the event of any impairment.

This election is reassessed each reporting period to determine whether non-marketable equity securities have a readily determinable fair value, in which case they would no longer be eligible for this election.

Equity securities that we elected to apply the fair value option and equity securities with a readily determinable fair value are measured at fair value on a recurring basis with changes in fair value recognized in the consolidated statements of operations.

We had no investments in equity securities whose fair value was readily determinable as of December 31, 2019 and 2020.

Our marketable equity securities in publicly traded companies are measured at fair value with unrealized gains and losses recognized in the consolidated statements of operations.

Certain investments in non-marketable equity securities are measured at cost, with remeasurements to fair value only upon the occurrence of observable price changes in orderly transactions for the identical or similar securities of the same issuer, or in the event of any impairment.

We reassess at each reporting period to determine whether non-marketable equity securities have a readily determinable fair value, in which case they would no longer be eligible for fair value measurement alternative.

Non-marketable equity securities that we elected to apply the fair value option and equity securities with a readily determinable fair value are measured at fair value on a recurring basis with changes in fair value recognized in the consolidated statements of operations.

We evaluate our non-marketable equity securities for impairment at each reporting period based on a qualitative assessment that considers various potential impairment indicators.

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government and agency securities and corporate bonds.

Certain investments in non-marketable equity securities with redemption, interest, or other debt-like features are classified as available-for-sale debt securities.

As of December 31, 2020, certain investments in non-marketable equity securities with redemption, interest, or other debt-like features were classified as available-for-sale debt securities.

Subsequent changes in fair value of available-for-sale debt securities are recorded in other comprehensive income (loss), net of tax.

We record certain of our debt securities at fair value with the changes in fair value recorded in earnings under the fair value option of accounting for financial instruments.

We consider our marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as short-term investments on the consolidated balance sheets.

Certain investments in non-marketable debt securities classified as available-for-sale debt securities are included in investments on the consolidated balance sheets.

As of December 31, 2020, we considered our marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as short-term investments on the consolidated balance sheet.

Certain investments in non-marketable debt securities classified as available-for-sale debt securities were included in investments on the consolidated balance sheet.

Allowance for Credit Losses on Available-for-sale Debt Securities

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Investments in common stock or in-substance common stock of entities that provide us with the ability to exercise significant influence, but not a controlling financial interest, over the investee are accounted for under the equity method of accounting, unless the fair value option is elected.

At December 31, 2020, our investment in Lime Common Stock was our only equity method investments

for which the fair value option was elected.

Refer to Note 3 - Investments and Fair Value Measurement for further information regarding our 2020 Lime Investments.

Our investments in Lime Common Stock, Lime 1-C Preferred Stock, Lime-1-C Preferred Stock Warrants, and the Lime Convertible Note (collectively, the “2020 Lime Investments”) are measured at fair value on a recurring basis with changes in fair value reflected in earnings.

Investments accounted for under the equity method are initially recorded at cost.

Subsequently, we recognize through the consolidated statements of operations and as an adjustment to the investment balance, our proportionate share of the entities’ net income or loss and to reflect the amortization of basis differences.

We record our share of the results of equity method investments one quarter in arrears within earnings in equity interests as loss from equity method investment, net of tax in the consolidated statements of operations.

Subsequently, we recognize through the consolidated statements of operations and as an adjustment to the investment balance, our proportionate share of the investees’ net income or loss and the amortization of basis differences.

We record our share of the results of equity method investments one quarter in arrears as income (loss) from equity method investment, net of tax in the consolidated statements of operations.

We evaluate each of our equity method investments at the end of each reporting period to determine whether events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable.

We recognize in the consolidated statements of operations and as an adjustment to the investment balance, any required impairment loss.

We recognize in the

consolidated statements of operations and as an adjustment to the investment balance, any required impairment loss.

Evidence of a loss in value might include, but would not necessarily be limited to, absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment.

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Level 3 Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities.

Our primary financial instruments include cash equivalents, marketable debt securities, restricted cash and cash equivalents, receivables, investments, accounts payable, accrued liabilities, long-term debt, and embedded derivatives and warrants.

Our primary financial instruments include cash equivalents, restricted cash and cash equivalents, receivables, investments, accounts payable, accrued liabilities, long-term debt, and, prior to 2021, marketable debt securities, embedded derivatives and warrants.

The estimated fair value of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates their carrying value due to the short-term maturities of these instruments.

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If we are not deemed to be the primary beneficiary in a VIE, we account for the investment or other variable interests in a VIE in accordance with applicable GAAP.

Refer to Note 16 - Variable Interest Entities ("VIEs") for further information.

Refer to Note 16 – Variable Interest Entities for further information.

Revenue Recognition

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We derive our revenues principally from Drivers’ and Merchants’ use of our platform, on-demand lead generation, and related services, including facilitating payments from end-users.

The service enables Drivers and Merchants to seek, receive and fulfill on-demand requests from end-users seeking Mobility or Delivery services

(collectively the “Uber Service”).

Beginning in 2020, in certain markets we also generate revenue from end-users we charge a direct fee for use of the platform and in exchange for Delivery services.

Additionally, we derive revenue from customers' use of Freight, and Advanced Technologies Group (“ATG”) and Other Technology Programs.

The service enables Drivers and Merchants to seek, receive and fulfill on-demand requests from end-users seeking Mobility or Delivery services (collectively the “Uber Service”).

Beginning in 2020, in certain markets we also generate revenue from end-users.

We charge a direct fee for use of the platform and in exchange for Delivery services.

Additionally, we derive revenue from customers' use of Freight services.

We periodically reassess our revenue recognition policies as new offerings become material, and business models and other factors evolve.

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We present revenue on a net basis for these transactions, as we do not control the service provided by Drivers to end-users.

We recognized total revenue of $ 323 million associated with these fees charged to end-users for the year ended December 31, 2020.

For the years ended December 31, 2020 and 2021, we recognized total revenue of $ 323 million and $ 336 million, respectively, associated with these fees charged to end-users.

Additionally, during the first quarter of 2020, we modified our arrangements in certain markets and as a result, concluded we are responsible for delivery services to end-users in those markets.

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We recognize delivery service revenue associated with our performance obligation over the contract term, which represents its performance over the period of time the delivery is occurring.

We recognized revenue of $ 91 million and cost of revenue, exclusive of depreciation and amortization of $ 439 million for the year ended December 31, 2020 associated with these delivery transactions.

For the year ended December 31, 2020, we recognized revenue from end-users of $ 91 million and cost of revenue, exclusive of depreciation and amortization of $ 439 million associated with these delivery transactions.

For the year ended December 31, 2021, we recognized revenue from end-users of $ 710 million and cost of revenue, exclusive of depreciation and amortization of $ 2.4 billion associated with these delivery transactions.

In all markets aside from the above two scenarios, end-users access the platform for free and we have no performance obligation to end-users.

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Accordingly, we recognize revenue on a net basis, representing the fee we expect to receive in exchange for us providing the service to Drivers and Merchants.

In certain markets, we promise Delivery services to end-users for a fee and separately subcontract with Delivery People to provide delivery services.

In certain markets, we promise Delivery services to end-users for a fee and separately subcontract with Couriers to provide delivery services.

In these markets, we are the principal for the Delivery services and present Delivery revenue on a gross basis because we are primarily responsible for the services.

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Depending on the market where the trip is completed, the service fee is either a fixed percentage of the end-user fare or the difference between the amount paid by an end-user and the amount earned by Drivers.

In markets where we earn the difference

between the amount paid by an end-user and the amount earned by Drivers, end-users are quoted a fixed upfront price for ridesharing services while we pay Drivers based on actual time and distance for the ridesharing services provided.

In markets where we earn the difference between the amount paid by an end-user and the amount earned by Drivers, end-users are quoted a fixed upfront price for ridesharing services while we pay Drivers based on actual time and distance for the ridesharing services provided.

Therefore, we can earn a variable amount and may realize a loss on the transaction.

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As such, uncollected service fees for cash trips are not recognized in the consolidated financial statements until collected from Drivers.

Mobility revenue also includes Other revenue primarily from financial partnerships, service fees charged to our Uber for Business (“U4B”) and Vehicle Solutions.

Vehicle Solutions revenue is accounted for as an operating lease as defined under ASC 842 and we recognize revenue from these arrangements as lease payments are collected.

Revenue attributable to this category was not material in all periods presented.

We derive our Delivery revenue primarily from service fees paid by Delivery People and Merchants for use of the platform and related service to successfully complete a meal delivery service on the platform.

Mobility revenue also includes immaterial revenue streams such as our financial partnerships products and Vehicle Solutions.

We derive our Delivery revenue primarily from service fees paid by Couriers and Merchants for use of the platform and related service to successfully complete a meal delivery service on the platform.

In certain markets, Delivery also includes offerings for grocery, alcohol and convenience store delivery as well as select other goods.

We recognize revenue when a Delivery transaction is complete.

In the majority of transactions, the service fee paid by Merchants is a fixed percentage of the meal price.

The service fee paid by Delivery People is the difference between the delivery fee amount paid by the end-user and the amount earned by the Delivery People.

End-users are quoted a fixed price for the meal delivery while we pay Delivery People based on time and distance for the delivery.

The service fee paid by Couriers is the difference between the delivery fee amount paid by the end-user and the amount earned by the Couriers.

End-users are quoted a fixed price for the meal delivery while we pay Couriers based on time and distance for the delivery.

Therefore, we earn a variable amount on a transaction and may realize a loss on the transaction.

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We derive our Freight revenue from freight transportation services provided to Shippers.

Revenue for Freight represents the gross amount of fees charged to Shippers for these services.

Costs incurred with carriers for Freight transportation are recorded in cost of revenue.

With the acquisition of Tupelo Parent, Inc.

(“Transplace”) during the fourth quarter of 2021, our Freight revenue also includes revenue from transportation management.

Refer to Note 18 – Business Combinations for further information on the Transplace acquisition.

Brokerage revenue represents the gross amount of fees charged to Shippers for our services because we control the service provided to customers.

Costs incurred with carriers for Brokerage are recorded in cost of revenue.

Shippers contract with us to utilize our network of independent freight carriers to transport freight.

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We enter into separate contracts with independent freight carriers and are responsible for prompt payment of freight charges to the carrier regardless of payment by the Shipper.

Our sole performance obligation is the transport of Shipper freight using our network of independent freight carriers.

We invoice the Shipper upon satisfaction of the performance obligation.

We invoice the Shipper upon satisfaction of our sole performance obligation to transport a Shipper’s freight using our network of independent freight carriers.

We recognize revenue associated with our performance obligation over the contract term, which represents our performance over the period of time a shipment is in transit.

While the transit period of our contracts can vary based on origin and destination, contracts still in transit at period end are not material.

Payment for our services is generally due within 30 to 45 days upon receipt of invoice.

Transportation Management

We provide an integrated logistics and transportation service, which can include shipment planning, freight optimization, carrier assignment, load management, freight audit and payment processing and other related transportation services.

Our sole performance obligation in these contracts is the integration of these services to transport the Shipper’s freight on a shipment-by-shipment basis.

The majority of our transportation management revenue is recognized on a gross basis in the amount of gross fees charged to Shippers upon satisfaction of our performance obligation because we control the service provided to customers.

Costs incurred with carriers for these transactions are recorded in cost of revenue.

In transactions where we do not control the service provided to customers, we recognize revenue on a net basis.

Revenue is recognized as our performance obligation is satisfied, which generally represents the transit period from origin to destination by a third-party carrier.

While the transit period of our contracts can vary based on origin and destination, contracts still in transit at period end are not material.

Payment for our services is generally due within 30 to 60 days upon completion of our performance obligation.

Principal vs.

Agent Considerations

Judgment is required in determining whether we are the principal or agent in transactions with Shippers.

For each contract entered into with a Shipper, we are responsible for identifying and directing independent freight carriers to transport the Shipper's goods.

We therefore control the service before it is transferred to the Shipper.

For each contract entered into with a Shipper where we are responsible for identifying and directing independent freight carriers to transport the Shipper's goods, we control the service before it is transferred to the Shipper.

We are primarily responsible for fulfilling the contract with the Shipper, including having discretion in selecting a qualified independent freight carrier that meets the Shipper's specifications.

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Accordingly, we are the principal in these transactions.

In consideration for our Freight services, Shippers pay us a fixed amount for each completed shipment.

When the Shipper's freight reaches its intended destination, our performance obligation is complete.

We recognize revenue associated with our performance obligation over the contract term, which represents its performance over the period of time a shipment is in transit.

While the transit period of our contracts can vary based on origin and destination, contracts still in transit at period end are not material.

Payment for our services is generally due within 30 to 45 days upon receipt of invoice.

In certain arrangements, we do not control the service provided to customers and recognize the related revenue on a net basis.

Contracts where we do not control the service before it is transferred to the Shipper are not material for the years ended December 31, 2019, 2020 and 2021.

All Other Revenue

E-Bikes and Scooters

E-Bikes and E-Scooters

Prior to the second quarter of 2020, All Other revenue (formerly our Other Bets segment) consisted primarily of revenue from New Mobility products, which were derived from operating leases as defined within ASC 842.

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Users contracted with us via a rental agreement at the inception of each trip.

We were responsible for providing access to the e-bikes and scooters over the user’s desired period of use.

We were responsible for providing access to the e-bikes and e-scooters over the user’s desired period of use.

We recorded lease payments received upon completion of each trip.

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Refer to Note 19 – Divestitures for further information on the JUMP Divestiture.

ATG and Other Technology Programs Collaboration Revenue

Advanced Technologies Group (“ATG”) and Other Technology Programs Collaboration Revenue

In 2019, we entered into a three-year joint collaboration agreement with certain third parties to develop next–generation self-driving technology.

Under this collaboration agreement, we receive cash consideration over the three-year term.

Under this collaboration agreement, we received cash consideration over the three-year term.

We have applied ASC 808, Collaborative Arrangements for recognition and presentation of the consideration received as collaboration revenue.

Refer to Note 19 - Divestitures for further information.

Refer to Note 17 – Non-Controlling Interests for further information.

Incentives to Customers

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Fair value of the service is established using amounts paid to vendors for similar services.

The amounts paid to customers presented as sales and marketing expenses for the years ended December 31, 2018 and 2019 were $ 136 million and $ 103 million, respectively.

Amounts in 2020 were immaterial.

The amounts paid to customers presented as sales and marketing expenses for the years ended December 31, 2019, 2020 and 2021 were immaterial.

In some transactions, incentives and payments made to customers may exceed the revenue earned in the transaction.

In these transactions, the resulting shortfall amount is recorded as a reduction of revenue.

Advertising Revenue

We derive the majority of our advertising revenue from sponsored listing fees paid by merchants and brands in exchange for advertising on our platform.

Advertising revenue is recognized when an end-user engages with the sponsored listing based on the number of clicks.

Revenue is presented on a gross basis in the amount billed to merchants as we control the advertisement before it is transferred to the end-user.

End-User Discounts and Promotions

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Refunds to end-users due to end-user dissatisfaction with the Platform are recorded as marketing expenses and reduce the accounts receivable amount associated with the corresponding transaction.

We have elected to exclude from revenue, taxes assessed by a governmental authority that are both imposed on and are concurrent with specific revenue producing transactions, and collected from Drivers and Merchants and remitted to governmental authorities.

We have elected to exclude from revenue, taxes assessed by a governmental authority that are both imposed on and are concurrent with specific revenue producing transactions, and collected from Drivers, Merchants and end-users and remitted to governmental authorities.

Accordingly, such amounts are not included as a component of revenue or cost of revenue.

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We estimate the expected term based on the simplified method for employee stock options considered to be “plain vanilla” options, as our historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term.

We estimate the expected term for non-employees based on the contractual term.

The expected risk-free interest rate is based on the United States ("U.S.") Treasury yield curve in effect at the time of grant.

We estimate the expected term for non-employees’ options based on the contractual term.

The expected dividend yield is 0.0 % as we have not paid and do not anticipate paying dividends on our common stock.

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We have granted RSUs and stock options that vest only upon the satisfaction of all the following conditions:

service-based service conditions, performance-based conditions, and market-based conditions.

service-based service conditions, performance-based conditions, and/or market-based conditions.

The service-based condition for these awards generally is satisfied over four years .

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In 2019, we determine volatility over an expected term of six months based on our historical volatility and twelve months based on the average of our historical volatility and our peer group.

In 2020, we determine volatility over an expected term of six months and twelve months based on our historical volatility.

In 2020 and 2021, we determine volatility over an expected term of six months and twelve months based on our historical volatility.

We estimate the expected term based on the contractual term.

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We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements.

In estimating future tax consequences, generally all expected future events other than enactments or changes in the tax law or rates are considered.

We account for uncertainty in tax positions recognized in the consolidated financial statements by recognizing a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits.

Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized.

We recognize accrued interest and penalties related to unrecognized tax benefits in the provision for (benefit from) income taxes in the consolidated statements of operations.

Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more-likely-than-not expected to be realized based on the weighting of positive and negative evidence.

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Our judgment regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute the business plans and/or tax planning strategies.

Should there be a change in the ability to recover deferred tax assets, our income tax provision would increase or decrease in the period in which the assessment is changed.

Should there be a change in the ability to recover deferred tax assets, our income tax provision would increase or decrease in the period in

which the assessment is changed.

We elected the tax law ordering approach in assessing the realizability of net operating losses expected to offset future Global Intangible Low-taxed Income (“GILTI”).

We have elected to treat any potential GILTI inclusions as a period cost.

The establishment of deferred tax assets from intra-entity transfers of intangible assets requires management to make significant estimates and assumptions to determine the fair value of such intangible assets.

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Unanticipated events and circumstances may occur that could affect either the accuracy or validity of such assumptions, estimates or actual results.

We recognize accrued interest and penalties related to unrecognized tax benefits in the provision for (benefit from) income taxes in the consolidated statements of operations.

Set forth below is a brief description of the components of our expenses:

and service costs, costs incurred for certain Delivery transactions where we are primarily responsible for delivery services and pay Delivery People for services provided, costs incurred with carriers for Uber Freight transportation services, amounts related to fare chargebacks and other credit card losses .

• Cost of revenue, exclusive of depreciation and amortization, primarily consists of certain insurance costs related to our Mobility and Delivery offerings, credit card processing fees, bank fees, data center and networking expenses, mobile device and service costs, costs incurred for certain Delivery transactions where we are primarily responsible for delivery services and pay Couriers for services provided, costs incurred with carriers for Uber Freight transportation services, amounts related to fare chargebacks and other credit card losses .

• Operations and support expenses primarily consist of compensation costs, including stock-based compensation, for employees that support operations in cities, including the general managers, Driver operations, platform user support representatives and community managers.

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We expense advertising and other promotional expenditures as incurred.

Advertising expenses totaled $ 1.3 billion, $ 1.3 billion and $ 992 million for the years ended December 31, 2018, 2019 and 2020, respectively.

Advertising expenses totaled $ 1.3 billion, $ 1.0 billion and $ 1.7 billion for the years ended December 31, 2019, 2020 and 2021, respectively.

Discounts, loyalty programs, promotions, refunds, and credits provided to end-users who are not customers totaled $ 2.5 billion, $ 2.0 billion, and $ 2.4 billion for the years ended December 31, 2019, 2020 and 2021, respectively.

• Research and development expenses primarily consist of compensation costs, including stock-based compensation, for employees in engineering, design and product development.

Expenses includes ATG and Other Technology Programs development expenses, as well as expenses associated with ongoing improvements to, and maintenance of, existing products and services, and allocation of certain corporate costs.

Expenses includes ATG and Other Technology Programs development expenses prior to the divestiture of our ATG business in January 2021, as well as expenses associated with ongoing improvements to, and maintenance of, existing products and services, and allocation of certain corporate costs.

• General and administrative expenses primarily consist of compensation costs, including stock-based compensation, for executive management and administrative employees, including finance and accounting, human resources, policy and communications, legal, and certain impairment charges, as well as allocation of certain corporate costs, occupancy, and general corporate insurance costs.

General and administrative expenses also include certain legal settlements.

• Depreciation and amortization expenses primarily consist of depreciation on buildings, site improvements, computer and network equipment, software, leasehold improvements, leased vehicles, furniture and fixtures, and amortization of intangible assets.

• Depreciation and amortization expenses primarily consist of depreciation on buildings, site improvements, computer and network equipment, software, leasehold improvements, furniture and fixtures, and amortization of intangible assets.

Restructuring and Related Charges

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Monetary assets and liabilities, and transactions denominated in currencies other than the functional currency are remeasured to the functional currency at the exchange rate in effect at the end of the period and are recorded in the current period consolidated statement of operations.

Gains and losses resulting from remeasurement are recorded in foreign exchange gains (losses), net within other income (expense), net in the consolidated statement of operations.

Gains and losses resulting from remeasurement are recorded in foreign exchange gains (losses), net within other income (expense), net in the consolidated statements of operations.

Subsidiary assets and liabilities with non-U.S.

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We record a liability when we believe that it is both probable that a loss has been incurred and the amount can be reasonably estimated.

If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the possible loss in the consolidated financial statements.

We review the developments in contingencies that could affect the amount of the provisions that have been previously recorded, and the matters and related reasonably possible losses disclosed.

We make adjustments to provisions and changes to disclosures accordingly to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information.

If we determine that a loss is reasonably possible and the loss or range of loss can be reasonably estimated, we disclose the possible loss in the consolidated financial statements.

We review the developments in our contingencies that could affect the amount of the provisions that have been previously recorded, and the matters and related reasonably possible losses disclosed.

We make adjustments to our provisions and changes to our disclosures accordingly to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information.

Significant judgment is required to determine both the probability and the estimated amount of loss.

The outcome of litigation, indirect tax examinations and investigations are inherently uncertain.

The outcomes of litigation, indirect tax examinations and investigations are inherently uncertain.

Therefore, if one or more of these matters were resolved against us for amounts in excess of management's expectations, our results of operations, financial condition, or cash flows, including in a particular reporting period in which any such outcome becomes probable and estimable, could be materially adversely affected.

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Legal fees and other costs associated with such actions are expensed as incurred.

Pending Transaction

Joint Venture Agreement with SK Telecom

In October 2020, we entered into a joint venture agreement with SK Telecom Co., LTD.

(“SK Telecom”).

Pursuant to this agreement, we and T map Mobility Co., Ltd.

(“Mobility Company”), a spin-off of SK Telecom’s mobility business, will form a joint venture (the “JV Business”) in South Korea, focused on the business of e-hailing of passenger transportation (including taxis and limousines).

Uber has agreed to invest an aggregate of approximately $ 100 million in the JV Business.

At the date of the close of the transaction, we will own a majority stake in the JV Business.

Subject to certain conditions, we and Mobility Company will have certain fair value put and call rights with respect to the non-controlling interest in the JV Business held by the Mobility Company.

The transaction is subject to customary closing conditions and is expected to close in the first half of 2021.

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments” to require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts.

The standard also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration.

ASC 326 was subsequently amended by ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” We adopted the standard and related amendments effective January 1, 2020 on a modified retrospective basis.