Profits skyrocket at UK arm of Uber Eats

Pre-tax profit jumped 74% last year at the UK arm of Uber Eats, the food delivery subsidiary of the mobility giant.

In the latest accounts for Uber Eats’ UK entity, the group reported pre-tax profit of £18.4m for the year ended December 2023, up from the £10.5m the year prior.

Turnover at the company, which offers rapid takeaway and grocery delivery in partnership with restaurants and shops, grew 55%, reaching £1.1bn in 2023.

The average monthly headcount for the company also grew, reaching 246 people in 2023, compared with 186 in 2022.

Costs jumped considerably in the period, with administrative expenses rising 82% to £355m. Despite rising costs, the company secured a total profit for the year of £14m.

In its strategic report, the firm credited this improved performance to a change in business model starting from April 2022.

According to the report, as of December 2023, the company held assets worth £37.3m, up from £20.8m in 2022.

Identifying potential risks to future company performance, the report noted that brand and reputational risk was a significant concern, referring to the considerable negative coverage and publicity of the group.

One such instance came off the back of a lawsuit filed against Uber Eats in 2022 from one of its couriers. The claimant alleged he was unfairly dismissed because its facial recognition system failed to recognise him die to his race.

“Your algorithm, by the looks of things, is racist,” said Pa Edrissa Manjang during the suit.

At the time, Uber denied the claim that its automated facial recognition system was the reason Manjang lost access to his courier account.

The company said it has taken “significant steps to rehabilitate” its brand and reputation, with a focus on minimising safety incidents and improving its culture and workplace practices.

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