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`Form 10-K Uber Technologies, Inc
`Annual report [Section 13 and 15(d), not S-K Item 405]
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`/ Uber Technologies, Inc (/CIK/0001543151)
`SEC.report (https://sec.report/)
`/ Form 10-K (/Document/0001543151-21-000014/)
`
`/ (Filer)
`
`Published: 2021-03-01 08:06:48 (2021-03-01T08:06:48-0400)
`Submitted: 2021-03-01
`Filing Agent: Wynaendts Alexander R (/CIK/0001543151)
`Period Ending In: 2020-12-31
`Interactive XBRL Filing (/Document/0001543151-21-000014/Interactive-1)
`
`About Form 10-K (/Form/10-K)
`
`uber-20201231.htm
`
` (https://sec.report/Document/0001543151-21-000014/uber-20201231.htm) 10-K
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`uber-20201231
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`UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,
`D.C. 20549____________________________________________ FORM 10-K
`____________________________________________ (Mark One)
`☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal
`year ended December 31, 2020OR☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
`EXCHANGE ACT OF 1934For the transition period from_____ to _____ Commission File Number: 001-38902
`____________________________________________ UBER TECHNOLOGIES, INC. (Exact name
`
`of registrant as specified in its charter)____________________________________________
`45-2647441
`Delaware
`(I.R.S. Employer Identification No.)
`(State or other jurisdiction of incorporation or organization)
`1515 3rd StreetSan Francisco, California 94158(Address of principal executive offices, including zip code)(415) 612-8582
`(Registrant’s telephone number, including area code) ____________________________________________Securities registered
`pursuant to Section 12(b) of the Act:
`
`Name of each exchange
`on which registered
`Trading Symbol(s)
`Title of each class
`New York Stock Exchange
`UBER (/Ticker/UBER)
`Common Stock, par value $0.00001 per share
`Securities registered pursuant to Section 12(g) of the Act: NoneIndicate by check mark whether the registrant is a well-known seasoned
`issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐Indicate by check mark whether the registrant is not required to file
`reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒Indicate by check mark whether the registrant (1) has filed all
`reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such
`shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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`Yes ☒ No ☐Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be
`submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period
`that the registrant was required to submit such files). Yes ☒ No ☐Indicate by check mark whether the registrant is a large accelerated
`filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of
`“large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange
`
`Act.
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`Large accelerated filer
`Non-accelerated filer
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`☒
`☐
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`Accelerated filer
`Smaller reporting company
`Emerging growth company
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`Emerging growth company
`If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
`complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
`Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness
`of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
`public accounting firm that prepared or issued its audit report.
`Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒The
`aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of June 30, 2020, the last
`business day of the registrant's most recently completed second fiscal quarter, was approximately $52.0 billion based upon the closing
`price reported for such date on the New York Stock Exchange.The number of shares of the registrant's common stock outstanding as
`of February 22, 2021 was 1,858,167,579.DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrant’s Definitive
`Proxy Statement relating to the Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form
`10-K where indicated. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after
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`the end of the registrant’s fiscal year ended December 31, 2020.
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`☐
`☐
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`☒
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`UBER TECHNOLOGIES, INC.TABLE OF CONTENTS
`
`Special Note Regarding Forward-Looking Statements
`https://sec.report/Document/0001543151-21-000014/
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`Pages
`2
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`Special Note Regarding Forward Looking Statements
`2
`
`PART I
`Item 1.
`Item 1A.
`Item 1B.
`Item 2.
`Item 3.
`Item 4.
`
`PART II
`Item 5.
`Item 6.
`Item 7.
`Item 7A.
`Item 8.
`Item 9.
`Item 9A.
`Item 9B.
`
`PART III
`Item 10.
`Item 11.
`Item 12.
`Item 13.
`Item 14.
`
`PART IV
`Item 15.
`Item 16.
`
`1
`
`Business
`Risk Factors
`Unresolved Staff Comments
`Properties
`Legal Proceedings
`Mine Safety Disclosures
`
`Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
`Selected Financial Data
`Management’s Discussion and Analysis of Financial Condition and Results of Operations
`Quantitative and Qualitative Disclosures About Market Risk
`Financial Statements and Supplementary Data
`Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
`Controls and Procedures
`Other Information
`
`Directors, Executive Officers and Corporate Governance
`Executive Compensation
`Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
`Certain Relationships and Related Transactions, and Director Independence
`Principal Accounting Fees and Services
`
`Exhibits, Financial Statement Schedules
`Form 10-K Summary
`Exhibit Index
`Signatures
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`4
`11
`46
`46
`46
`47
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`47
`50
`52
`80
`82
`156
`156
`157
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`157
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`157
`157
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`SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTSThis Annual Report on Form 10-K contains forward-looking
`statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical
`facts contained in this Annual Report on Form 10-K, including statements regarding our future results of operations or financial condition,
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`business strategy and plans, and objectives of management for future operations, are forward-looking statements. In some cases, you can
`identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,”
`“estimate,” “expect,” “hope,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,”
`“target,” “will,” or “would” or the negative of these words or other similar terms or expressions. These forward-looking statements
`include, but are not limited to, statements concerning the following:
`•
`the impacts of COVID-19 or other future pandemics on
`•
`our business, results of operations, financial position and cash flows;
`our ability to successfully defend litigation and
`government proceedings brought against us, including with respect to our relationship with drivers and delivery persons, and the potential
`impact on our business operations and financial performance if we are not successful;
`•
`our ability to successfully compete in
`highly competitive markets;
`•
`our ability to effectively manage our growth and maintain and improve our corporate culture;
`•
`our expectations regarding financial performance, including but not limited to revenue, potential profitability and the timing
`thereof, ability to generate positive Adjusted EBITDA, expenses, and other results of operations;
`•
`our expectations regarding
`future operating performance, including but not limited to our expectations regarding future Monthly Active Platform Consumers
`(“MAPCs”), Trips, Gross Bookings, and Take Rate;
`•
`our expectations regarding our competitors’ use of incentives and
`promotions, our competitors’ ability to raise capital, and the effects of such incentives and promotions on our growth and results of
`operations;
`•
`our anticipated investments in new products and offerings, and the effect of these investments on our results of
`operations;
`•
`our anticipated capital expenditures and our estimates regarding our capital requirements;
`•
`our ability
`to close and integrate acquisitions into our operations;
`•
`anticipated technology trends and developments and our ability to
`address those trends and developments with our products and offerings;
`•
`the size of our addressable markets, market share,
`category positions, and market trends, including our ability to grow our business in the countries we have identified as expansion
`markets;
`•
`the safety, affordability, and convenience of our platform and our offerings;
`•
`our ability to identify,
`recruit, and retain skilled personnel, including key members of senior management;
`•
`our expected growth in the number of
`platform users, and our ability to promote our brand and attract and retain platform users;
`•
`our ability to maintain, protect, and
`enhance our intellectual property rights;
`•
`our ability to introduce new products and offerings and enhance existing products
`and offerings;
`•
`our ability to successfully enter into new geographies, expand our presence in countries in which we are limited
`by regulatory restrictions, and manage our international expansion;
`•
`our ability to successfully renew licenses to operate our
`business in certain jurisdictions;
`•
`the availability of capital to grow our business;
`•
`our ability to meet the
`requirements of our existing debt and draw on our line of credit;
`•
`our ability to prevent disturbance to our information
`technology systems;
`•
`our ability to comply with existing, modified, or new laws and regulations applying to our business;
`and
`•
`our ability to implement, maintain, and improve our internal control over financial reporting.Actual events or results may
`differ from those expressed in forward-looking statements. As such, you should not rely on forward-looking statements as predictions of
`future events. We have based the forward-looking statements contained in this Annual Report on Form 10-K primarily on our current
`expectations and projections about future events and trends that we believe may affect our business, financial condition, operating results,
`prospects, strategy, and financial needs. The outcome of the events described in these forward-looking statements is subject to risks,
`2
`uncertainties, assumptions, and other factors described in the section titled “Risk
`
`Factors” and elsewhere in this Annual Report on Form 10-K. Moreover, we operate in a highly competitive and rapidly changing
`environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that
`could have an impact on the forward-looking statements contained in this Annual Report on Form 10-K. The results, events and
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`circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could
`differ materially from those described in the forward-looking statements.In addition, statements that “we believe” and similar statements
`reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this
`Annual Report on Form 10-K. While we believe that such information provides a reasonable basis for these statements, such information
`may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review
`of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these
`statements.The forward-looking statements made in this Annual Report on Form 10-K speak only as of the date on which the statements
`are made. We undertake no obligation to update any forward-looking statements made in this Annual Report on Form 10-K to reflect
`events or circumstances after the date of this Annual Report on Form 10-K or to reflect new information, actual results, revised
`expectations, or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or
`3
`expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
`
`PART IITEM 1. BUSINESSOverviewWe are a technology platform that uses a massive network, leading technology, operational
`excellence and product expertise to power movement from point A to point B. We develop and operate proprietary technology applications
`supporting a variety of offerings on our platform (“platform(s)” or “Platform(s)”). We connect consumers (“Rider(s)”) with independent
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`providers of ride services (“Mobility Driver(s)”) for ridesharing services, as well as with other forms of transportation including public
`transit. We also connect Riders and other consumers (“Eater(s)”) with restaurants, grocers and other stores (collectively, “Merchants”) with
`delivery service providers (“Delivery People”) for food, 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).” We also connect
`consumers with public transportation networks. We use this same network, technology, operational excellence and product expertise to
`connect shippers with carriers in the freight industry.Our technology is available in approximately 71 countries around the world,
`principally in the United States (“U.S.”) and Canada, Latin America, Europe, the Middle East, Africa, and Asia (excluding China and
`Southeast Asia).Our SegmentsAs of December 31, 2020, we had four operating and reportable segments: Mobility, Delivery, Freight and
`Advanced Technologies Group (“ATG”) and Other Technology Programs. Mobility, Delivery and Freight platform offerings each address
`large, fragmented markets. ATG and Other Technology Programs is focused on the development and commercialization of autonomous
`vehicle and ridesharing technologies, as well as Uber Elevate. On December 7, 2020, we announced the sale of Apparate USA LLC (“ATG
`Business” or “Apparate”), our subsidiary focused on the development and commercialization of autonomous vehicle technologies, to
`Aurora Innovation, Inc. (“Aurora”). Our ATG Business is included within our ATG and Other Technology Programs segment. On January
`19, 2021, we completed the sale of our ATG Business to Aurora.MobilityMobility refers to products that connect consumers with Mobility
`Drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. Mobility also includes
`activity related to our Uber for Business (“U4B”), Financial Partnerships, Transit and Vehicle Solutions offerings.We believe that our
`ridesharing category position is a key indicator of our progress towards our massive market opportunity. We calculate our ridesharing
`category position based on the best available data within a given region. For example, in most cases we divide our Mobility Gross
`Bookings by our estimates of total ridesharing Gross Bookings generated by us and other companies with similar ridesharing products. We
`estimate our total ridesharing Gross Bookings in a given region by utilizing internal source data, including historical trip, bookings,
`product mix, and fare information, and external source data provided by publicly available information and marketing analytics firms.
`Based on these estimates, we believe we have a leading ridesharing category position in every major region of the world where we operate.
`We also participate in certain regions through our minority-owned affiliates. At the time of entering into such transactions, we believed
`based on our internal estimates using the information then available to us that each of Didi, Grab, and Yandex.Taxi, on a pro forma basis,
`had the leading ridesharing category position in its respective market.During 2020, we completed the acquisition of substantially all of the
`assets of Careem Inc. (“Careem”). Dubai-based Careem was founded in 2012, and provides primarily ridesharing and payments services to
`millions of users in cities across the Middle East, North Africa, and Pakistan. For additional information, see Note 18 – Business
`Combinations included in Part II, Item 8, “Financial Statements and Supplementary Data,” of this Annual Report on Form 10-
`K.DeliveryOur Delivery offering allows consumers to search for and discover local restaurants, order a meal, and either pick-up at the
`restaurant or have the meal delivered and, in certain markets, also includes offerings for grocery and convenience store delivery as well as
`select other goods. We launched our Delivery app over five years ago. We believe that Delivery not only leverages, but also increases, the
`supply of Drivers on our network. For example, Delivery enables Mobility Drivers to increase their utilization and earnings by accessing
`additional demand for trips during non-peak Mobility times. Delivery also expands the pool of Drivers by enabling people who are not
`Mobility Drivers or who do not have access to Mobility-qualified vehicles to deliver meals on our platform. In addition to benefiting
`Drivers and consumers, Delivery provides Merchants with an instant mobile presence and efficient delivery capability, which we believe
`generates incremental demand and improves margins for Merchants by enabling them to serve more consumers without increasing their
`existing front-of-house expenses.During 2020, we received regulatory approvals to purchase a controlling interest in Cornershop Cayman
`("Cornershop”"), operating an online grocery delivery platform primarily in Chile and Mexico. We also completed the acquisition of
`Postmates Inc. (“Postmates”) in an all-stock transaction and both companies began the process of integrating U.S. operations. The
`acquisition of Postmates brings together our global Mobility and Delivery platform with Postmates’ business in the United States to
`4
`strengthen the
`
`delivery of food, groceries, essentials, and other goods. For additional information, see Note 18 – Business Combinations included in Part
`II, Item 8, “Financial Statements and Supplementary Data,” of this Annual Report on Form 10-K.FreightWe believe that Freight is
`revolutionizing the logistics industry. Freight leverages our proprietary technology, brand awareness, and experience revolutionizing
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`industries to connect carriers with shippers on our platform, and gives carriers upfront, transparent pricing and the ability to book a
`shipment. The freight industry today is highly fragmented and deeply inefficient. It can take several hours, sometimes days, for shippers to
`find a truck and driver for shipments, with most of the process conducted over the phone or by fax. Procurement is highly fragmented, with
`traditional players relying on local or regional offices to book shipments. It is equally difficult for carriers to find and book the shipments
`that work for their businesses, spending hours on the phone negotiating pricing and terms. These inefficiencies adversely impact both
`shippers and carriers, and contribute to the number of non-revenue or “dead-head” miles, which are miles driven by carriers between
`shipments. Freight greatly reduces friction in the logistics industry by providing an on-demand platform to automate and accelerate
`logistics transactions end-to-end. Freight connects carriers with shippers available on our platform, and gives carriers upfront, transparent
`pricing and the ability to book a shipment with the touch of a button.We serve shippers ranging from small- and medium-sized businesses
`to global enterprises by enabling them to create and tender shipments with a few clicks, secure capacity on demand with upfront pricing,
`and track those shipments in real-time from pickup to delivery. We believe that all of these factors represent significant efficiency
`improvements over traditional freight brokerage providers.ATG and Other Technology ProgramsThe ATG and Other Technology
`Programs segment is primarily responsible for the development and commercialization of autonomous vehicle and ridesharing
`technologies, as well as Uber Elevate. On December 7, 2020, we announced the sale of our ATG Business to Aurora. Our ATG Business is
`included within our ATG and Other Technology Programs segment. On January 19, 2021, we completed the sale of our ATG Business to
`Aurora. Also on January 19, 2021, we made a $400 million cash investment in Aurora and entered into a collaboration agreement with
`Aurora pursuant to which the parties will collaborate with respect to the launch and commercialization of self-driving vehicles on our
`ridesharing network. We plan to continue to partner with Aurora to effectively leverage our network during the transition to autonomous
`vehicle technologies. For additional information, see Note 9 – Assets and Liabilities Held for Sale included in Part II, Item 8, “Financial
`Statements and Supplementary Data,” of this Annual Report on Form 10-K.Platform SynergiesOur PlatformThe foundation of our
`platform is our massive network, leading technology, operational excellence, and product expertise. Together, these elements power
`movement from point A to point B.
`Massive Network
`Our massive, efficient, and intelligent network consists of tens of millions of Drivers, consumers,
`Merchants, shippers and carriers, as well as underlying data, technology, and shared infrastructure. Our
`network becomes smarter with every trip. In approximately 10,000 cities around the world (as of January
`1, 2021), our network powers movement at the touch of a button for millions, and we hope eventually
`billions, of people.
`
`Leading Technology
`
`Operational Excellence
`
`We have built proprietary marketplace, routing, and payments technologies. Marketplace technologies are
`the core of our deep technology advantage and include demand prediction, matching and dispatching, and
`pricing technologies. Our technologies make it extremely efficient to launch new businesses and
`operationalize existing ones.
`
`Our regional on-the-ground operations teams use their extensive market-specific knowledge to rapidly
`launch and scale products in cities, support Drivers, consumers, Merchants, shippers, and carriers, and
`build and enhance relationships with cities and regulators.
`
`Product Expertise
`
`Our products are built with the expertise that allows us to set the standard for powering movement on-
`demand, provide platform users with a contextual, intuitive interface, continually evolve features and
`functionality, and deliver safety and trust.
`We intend to continue to invest in new platform offerings that we believe will further strengthen our platform and existing offerings.We
`believe that all of these synergies serve the customer experience, enabling us to attract new platform users and to deepen engagement with
`existing platform users. Both of these dynamics grow our network scale and liquidity, which further increases the value of our platform to
`platform users. For example, Delivery attracts new consumers to our network—for the three months ended December 31, 2020, over 56%
`of first-time Delivery consumers were new to our platform. Additionally, for the three months ended December 31, 2020, consumers who
`5
`used both Mobility and Delivery generated 11.1 Trips per month on average, compared to 5.1
`
`Trips per month on average for consumers who used a single offering in cities where both Mobility and Delivery were offered. We believe
`that these trends will improve as we further leverage the power of our platform.With our platform, we are making it even easier for our
`consumers to unlock convenience. Our Uber Pass and Eats Pass membership programs are designed to make utilizing our suite of products
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`a seamless and rewarding experience for our consumers. We exited 2020 with over 5 million members for our Uber Pass, Eats Pass and
`Postmates Unlimited membership programs. In 2020, we rolled out our “Super App” view on iOS and Android, which combines our
`multiple offerings into a single app and is designed to remove friction for our consumers, positioning Uber to become the operating system
`for your everyday life. Competitive EnvironmentWe compete on a global basis in highly fragmented markets. We face significant
`competition in each of the mobility and delivery industries globally and in the logistics industry in the United States and Canada from
`existing, well-established, and low-cost alternatives, and in the future we expect to face competition from new market entrants given the
`low barriers to entry that characterize these industries. As we and our competitors introduce new products and offerings, and as existing
`products evolve, we expect to become subject to additional competition. While we work to expand globally and introduce new products
`and offerings across a range of industries, many of our competitors remain focused on a limited number of products or on a narrow
`geographic scope, allowing them to develop specialized expertise and employ resources in a more targeted manner than we do. The
`competition we face in each of our offerings includes:
`• Mobility. Our Mobility offering competes with personal vehicle
`ownership and usage, which accounts for the majority of passenger miles in the markets that we serve, and traditional transportation
`services, including taxicab companies and taxi-hailing services, livery and other car services. In addition, public transportation can be a
`superior substitute to our Mobility offering and in many cases, offers a faster and lower-cost travel option in many cities. We also compete
`with other ridesharing companies, including certain of our minority-owned affiliates, for drivers and riders, including Lyft, Didi, OLA,
`Bolt, and our Yandex.Taxi joint venture.
`• Delivery. Our Delivery offering competes with numerous companies in the meal,
`grocery and other delivery space in various regions for drivers, consumers, and merchants, including DoorDash, GrubHub, Deliveroo,
`Glovo, Rappi, iFood, Delivery Hero, Just Eat Takeaway, and Amazon. Our Delivery offering also competes with restaurants, meal kit
`delivery services, grocery delivery services, and traditional grocers.
`•
`Freight. Our Freight offering competes with global and
`North American freight brokers such as C.H. Robinson, Total Quality Logistics, XPO Logistics, Convoy, Echo Global Logistics, Coyote,
`Transfix, DHL, and NEXT Trucking.Government RegulationWe operate in a particularly complex legal and regulatory environment. Our
`business is subject to a variety of U.S. federal, state, local and foreign laws, rules, and regulations, including those related to Internet
`activities, privacy, cybersecurity, data protection, intellectual property, competition, consumer protection, payments, labor and
`employment, transportation services, transportation network companies, licensing regulations and taxation. These laws and regulations are
`constantly evolving and may be interpreted, applied, created, or amended, in a manner that could harm our business. Examples of certain
`laws and regulations we are subject to are described below.
`MobilityOur platform, and in particular our Mobility products, are subject
`to differing, and sometimes conflicting, laws, rules, and regulations in the numerous jurisdictions in which we operate. A large number of
`proposals are before various national, regional, and local legislative bodies and regulatory entities, both within the United States and in
`foreign jurisdictions, regarding issues related to our business model.In the United States, many state and local laws, rules, and regulations
`impose legal restrictions and other requirements on operating our Mobility products, including licensing, insurance, screening, and
`background check requirements. Outside of the United States, certain jurisdictions have adopted similar laws, rules, and regulations while
`other jurisdictions have not adopted any laws, rules, and regulations which govern our Mobility business. Further, certain jurisdictions,
`including Argentina, Germany, Italy, Japan, South Korea, and Spain, the six countries that we have identified as expansion markets, have
`adopted laws, rules, and regulations banning certain ridesharing products or imposing extensive operational restrictions. This uncertainty
`and fragmented regulatory environment creates significant complexities for our business and operating model. Substantially all states in
`the United States and numerous municipalities in the United States and around the world have adopted Transportation Network Company
`(“TNC”) regulations. These regulations generally focus on companies that operate websites or mobile apps that connect individual drivers
`with their own vehicles to passengers willing to pay to be driven to their destinations. These regulations often require TNCs to comply
`with rules regarding, among other things, background checks, vehicle inspections, accessible vehicles, driver and consumer safety,
`6
`insurance, driver training, driver conduct, and other similar matters.
`
`In addition, many jurisdictions have adopted regulations that apply to how we classify the Drivers who use our platform. For example,
`California’s Assembly Bill 5 (“AB5”), which went into effect in January 2020, codified a test to determine whether a worker is an
`employee under California law. The California Attorney General, in conjunction with the city attorneys for San Francisco, Los Angeles
`https://sec.report/Document/0001543151-21-000014/
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`9/216
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`Uber Technologies, Inc 2020 Annual Report 10-K
`4/29/2021
`Case 2:21-cv-00072-JRG Document 43-2 Filed 05/07/21 Page 11 of 217 PageID #: 657
`and San Diego, filed a complaint under AB5, alleging that drivers are misclassified, and sought an injunction and monetary damages
`related to the alleged competitive advantage caused by the alleged misclassification of drivers. The Court issued a preliminary injunction
`enjoining Uber and Lyft from classifying drivers as independent contractors during the pendency of the lawsuit. We unsuccessfully
`appealed this injunc