Uber and Uber Eats Report Mixed Financial Results for New Zealand

Uber and its subsidiary Uber Eats have reported contrasting financial performances in New Zealand for the year ending December 31, 2024. Together, the companies generated a combined revenue of $402 million, yet the total tax paid was less than $1 million.

Uber Eats experienced a notable increase in its net profit, climbing from $1.7 million in the previous year to $2.4 million. This growth was driven by a 17% rise in revenue, which surged from $255.3 million to $298.5 million. The food delivery service’s performance reflects its strengthening position in the competitive market.

In contrast, the ride-hailing segment, Uber, faced a decline in net profit. The company’s earnings fell from $1.6 million to $1.1 million, with revenue also dipping from $109.9 million to $104.8 million. This downward trend raises questions about its operational challenges and market dynamics.

Despite the overall substantial revenue figures, Uber Eats reported an income tax liability of $539,682, down from $609,597 in 2023. Similarly, the Uber ride-hailing business incurred an income tax expense of $262,948, a reduction from $609,507 in the previous year.

The financial results signify the ongoing evolution of both services within New Zealand’s transport and food delivery sectors. As Uber Eats continues to thrive, the ride-hailing segment may need to reassess its strategies to regain profitability.

This financial snapshot raises broader considerations about corporate taxation in New Zealand, particularly as major companies like Uber continue to generate high revenues while contributing relatively low tax amounts. The implications of these figures could influence public discourse around corporate tax policies and the responsibilities of multinational companies operating in the region.

In summary, while Uber Eats showcases growth and resilience, Uber’s declining performance highlights the challenges faced in the competitive ride-hailing industry. The future trajectory of both businesses will be closely monitored as they navigate the evolving landscape of New Zealand’s economy.