REVENUE RECOGNITION POLICY FOR A
COMPANY ENGAGED IN THE BUSINESS OF ‘RIDE SHARING’
UBER TECHNOLOGIES, INC.
(31ST DECEMBER, 2018)
(From Summary of Key Accounting Policies)
The Company recognises
revenue when or as it satisfies its obligation. The Company derives its
revenues principally from Partners' use of its ‘Core Platform’ and related
services in connection with ride sharing and Uber Eats and from customers' use
of Other Bets offerings, including Freight and New Mobility.
The Company enters into
Master Services Agreements ("MSA") with Partners to use the Platform.
The MSA defines the service fee that the company charges the Partners for each
transaction. Upon acceptance of a transaction, the Partner agrees to perform
the ride sharing or Eats services as requested by an end-user. The acceptance
of a transaction request combined with the MSA establishes enforceable rights
and obligations for each transaction. A contract exists between the Company and
a Partner after the Partner accepts a transaction request and the Partner's
ability to cancel the transaction lapses. End-users access the Platform for
free and the Company has no performance obligation to end-users. As a result,
end-users are not the Company's customers.
The Company's Platform and
related service includes on-demand lead generation and related activities,
including facilitating payments from end-users, that enable Partners to seek,
receive and fulfil on-demand requests from end-users