Research and development is the biggest expense line for Uber that's not a one-off related to the IPO.
Between its Advanced Technologies Group that's developing self-driving cars in Pittsburgh, Toronto, and San Francisco; New Mobility that's launching new e-bikes and adding public transit options to Uber's app; Elevate, the unit dedicated to making flying taxis a reality; and improvements to its core ride-hailing business's dispatching, routing, and fare algorithms, there's plenty to spend money on.
Read more: Uber has raised another $1 billion for its self-driving unit, which is now valued at more than $7 billion
Here's how Uber defines R&D spend in regulatory filings:
Research and development expenses consist primarily of compensation expenses for engineering, product development, and design employees, including stock-based compensation, expenses associated with ongoing improvements to, and maintenance of, our platform offerings, and ATG and Other Technology Programs development expenses, as well as allocated overhead. We expense substantially all research and development expenses as incurred.