Uber rides wave of profit, revenue
Uber Technologies increased revenue, headcount and profitability for its London operations hub before its licence was revoked in September in a surprise move by regulators.
Uber Technologies increased revenue, headcount and profitability for its London operations hub before its licence was revoked in September in a surprise move by regulators.
Revenue for Uber London rose to £36.9m in 2016, up 59% compared with the previous year, according to its latest UK company accounts.
Profit before tax climbed 65% to £3m, while the average number of monthly employees grew to 199, up 90%.
Uber’s licence was revoked in September by Transport for London, a decision against which Uber intends to appeal. The company is allowed to operate during the appeal process.
Its London operation appeared to be but a sliver of its global operation. The start-up generated $1.75bn in adjusted net revenue in the second quarter of 2017, up 17% from the prior quarter. Uber narrowed losses by 9% to $645m, based on financial results provided by the US company.
However, it is difficult to gauge Uber’s true profitability in the UK capital. While Uber London is the operating company for the city, actual commissions from drivers are routed to a holding company in the Netherlands — Uber International BV.
Net sales for Uber International BV for the same period increased to $1.62bn from $519.8m, according to company documents in the Netherlands.
In London, Uber says it has more than 40,000 drivers and more than 3.5-million riders who use the app at least once every 90 days. Regulators criticised Uber for a poor record of reporting crimes and inadequate background checks on drivers. Officials also said the company had actively tried to avoid government scrutiny through a program called “Greyball”. Regulators concluded Uber did not pass the “fit and proper” test to operate in the city.
CEO Dara Khosrowshahi flew to London for a meeting with Transport for London on Tuesday, and talks have been flagged to continue over the coming weeks.