Uber revealed its UK revenue of £3.4 billion for the first-time.
Uber Eats, a food delivery service that delivers takeout from restaurants or groceries from supermarkets, also made £700 million.
In the accounts filed with Companies House for the year ending December 2022, Uber has revealed the total amount of orders it receives, before money is divided between drivers and restaurants. Uber is giving a clearer picture of its UK operations for the first time since March, when it changed its business structure.
Uber had to change its business model in the last year following a Supreme Court decision from 2021. The ruling was based on a case filed by drivers who demanded full-time employment. The court ruled in their favor, stating that Uber was not just a “middleman” between drivers and users but a transportation provider. Uber has now accounted for all of its revenue, and not just a small portion. The company also stopped routing UK revenues through its Netherlands operation.
Uber’s UK holding made a profit before tax of £32million last year, a huge jump from the £5million it reported the previous year. The £3.4 billion in revenue was a 2,992 percent increase over the £108 millions it reported the previous year. Taxes were paid by the company at a rate around 13 percent, amounting to £4.3 million. Uber’s tax rates were lower than the standard rate of 19 percent during this period, due to payments made in advance to HM Revenue & Customs before the pandemic when taxis dropped.
Uber’s UK progress is difficult to track due to the change in its annual accounts. The company acknowledged that it operated in a highly competitive environment. Drivers regularly switch platforms to earn more money on rival platforms. Uber drivers are often employed by rival apps like Bolt or Free Now. Uber increased pay for drivers in the last year.
Uber, which is often criticized for its pay and working conditions, has admitted that it “previously” received “significant media coverage and negative publicity”, but it said it took “significant steps to restore our brand”.
It also warned that small businesses within its delivery network may be affected by “any decrease in consumer spending” due to the current economic climate. The company’s food delivery division competes with Just Eat (which had revenues of £1.2 billion for its UK and Ireland operations in its last reported financial year) and Deliveroo (which had revenues of £1.1 million).
Uber’s accounts only provide a snapshot for the first three quarters of the year, as the model changes took place at the end March. The turnover will likely increase again in 2023. This is the first year that the new model has been fully implemented.
More than 90,000 Uber drivers are employed in the United States. Uber stated: “Uber launched its UK service more than 10 years ago, and it has created hundreds of thousand of earning opportunities.” Uber is the world’s largest global market. We move more than five million Brits every day.