June 2019

FROM PUBLISHED ACCOUNTS

HIMANSHU V. KISHNADWALA
Chartered Accountant

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)

 Revenue Recognition

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.

 

Core Platform

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

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