Uber has cautioned it may struggle to sustain profitability in the UK, even as its revenues jumped by more than £1 billion during the past financial year.
In its latest financial accounts filed at Companies House for 2024, the ride-hailing and delivery giant reported revenues rising from £5.2bn to £6.5bn – a 24% increase. The growth was largely driven by an uptick in both taxi journeys and orders placed through Uber Eats.
Rising Revenues, Falling Profits
While Uber’s UK mobility arm saw sales increase from £4.1bn to £5.1bn, and Uber Eats revenue climbed from £1.1bn to £1.3bn, the company’s pre-tax profit fell by 26%, dropping from £29.3m to £21.6m.
Uber attributed this fall to higher administrative costs within its Delivery UK division, alongside a sharp rise in overall expenditure. The group’s cost of sales jumped from £4.1bn to £5.1bn over the year.
Warning to Investors
In its statement, Uber stressed that future profitability in the UK remains uncertain, writing:
“We must continue to generate and sustain increased revenues while reducing proportionate costs in the coming years to achieve profitability in many of our largest markets. Even if we are successful in doing so, we may not be able to maintain or increase profitability.”
The warning was highlighted in bold text within the accounts, underlining the seriousness of the message to investors.
What This Means for the UK Market
The UK remains one of Uber’s most significant international markets, particularly in London and other major cities where demand for private hire vehicles continues to grow. However, the company faces mounting pressure from rising operating costs, increased competition from rivals, and ongoing regulatory scrutiny.
The results suggest that while Uber’s platform continues to expand, turning consistent growth into long-term profitability in the UK may prove a tougher challenge than expected.
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