Uber has cautioned it may struggle to maintain profitability in the º£½ÇÊÓƵ due to escalating costs, despite revenues climbing by over £1bn during its most recent financial year.
The American technology giant has stated it must generate and sustain higher revenue levels whilst reducing proportionate expenditure in forthcoming years "to achieve profitability in many of our largest markets", as reported by .
Uber further noted that even if successful in this endeavour, "we may not be able to maintain or increase profitability".
This warning, emphasised in bold text, appeared in the company's latest financial accounts for 2024, which demonstrate revenues leaping from £5.2bn to £6.5bn.
Nevertheless, the results lodged with Companies House also reveal that Uber's pre-tax profit in the º£½ÇÊÓƵ dropped from £29.3m to £21.6m during the same timeframe.
Uber attributed its 24 per cent turnover increase primarily to a rise in taxi journeys and orders via Uber Eats.
Revenue from its mobility division climbed from £4.1bn to £5.1bn throughout the year, whilst Uber Eats' sales similarly expanded from £1.1bn to £1.3bn.
Simultaneously, the group's cost of sales soared from £4.1bn to £5.1bn.
Throughout the period, the average workforce employed by Uber in the º£½ÇÊÓƵ grew from 427 to 512 individuals.
Regarding the 26 per cent decline in pre-tax profit, the company explained this was chiefly due to increased administrative expenses within its Delivery º£½ÇÊÓƵ operations.
Uber rivals handed major VAT boost
Following a landmark Supreme Court ruling, it was reported by City AM in July that Uber's competitor taxi firms will not be required to pay 20 per cent VAT on their profits outside of London. The court ruled that private-hire operators do not enter into contracts with passengers and are therefore exempt from the tax.
This decision followed a case brought by Uber after a 2021 Supreme Court ruling determined its drivers were workers, affecting Uber's tax and other obligations in the º£½ÇÊÓƵ. In 2023, the High Court in London ruled in Uber's favour when it sought a declaration that private-hire taxi operators enter into contracts with passengers.
However, this decision, which would have required operators to pay 20 per cent VAT, was overturned by the Court of Appeal in July 2024 following challenges by private hire operators Delta Taxis and platform Veezu. Uber subsequently appealed to the Supreme Court.
In a separate case earlier this year, Estonian ride-hailing and food delivery start-up Bolt won an appeal against the º£½ÇÊÓƵ tax authority HMRC over what it has to pay VAT on at 20 per cent. Since then, HMRC has been granted permission to challenge the ruling.
