Uber and Uber Eats Report Revenue Growth but Low Tax Payments in NZ

Uber and its food delivery service, Uber Eats, reported combined revenues of $402 million in New Zealand for the year ending December 31, 2024. Despite the substantial revenue, both entities paid less than $1 million in taxes, raising questions about their financial contributions to the local economy.

The financial results reveal a contrasting performance between the two businesses. Uber Eats, which focuses on food delivery, saw its net profit increase from $1.7 million in the previous year to $2.4 million, driven by a 17% rise in revenue from $255.3 million to $298.5 million. This growth can be attributed to the increasing demand for food delivery services, particularly in urban areas.

In contrast, the ride-hailing segment of Uber experienced a decline. Uber’s net profit fell from $1.6 million to $1.1 million, while its revenue decreased from $109.9 million to $104.8 million. This downturn reflects broader challenges in the ride-hailing market, which has faced growing competition and changing consumer preferences.

Tax contributions from both businesses have been notably low, with Uber Eats reporting an income tax of $539,682, a decrease from $609,597 in 2023. Similarly, the Uber ride-hailing service recorded an income tax expense of $262,948, down from $609,507 the previous year.

These figures highlight a significant disparity between the companies’ revenues and tax payments. Critics argue that such low tax contributions from major corporations like Uber and Uber Eats can hinder local government funding for essential services.

As both companies navigate a competitive landscape, their financial strategies and tax obligations will likely continue to attract scrutiny. Stakeholders are keenly watching how these dynamics will evolve in the coming years, especially as the demand for both ride-hailing and food delivery services remains strong.