Uber reveals $983 million UK revenue as cash flow turns positive

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The importance of Uber’s battle for a place in London’s competitive taxi and private hire market was highlighted when the US company reported the first positive quarterly cash flow in its history on Tuesday.

As part of its latest update to investors, the ride-hailing app said a “change in the business model for our UK mobility business” contributed to a “$983 million revenue gain” following a court ruling that the company is the official transport company. provider to its users, rather than an intermediary who takes a discount on the rates. The change means the company will be able to record as revenue any rates charged there in the UK.

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Uber’s mobility business was previously known as Uber Rides and includes the core ride pick-up service. London is by far the company’s largest market in the UK and one of the largest globally outside of the US.

Uber also said the $983 million including “an imputation has been made for the resolution of historic claims in the UK related to driver classification.”

There was also a court ruling that Uber drivers should be self-employed, meaning — meaning drivers are entitled to paid leave, the minimum wage and pensions — Uber argued that any payments due after the ruling were retroactive. could be reduced by just two years, citing UK labor rules introduced in 2015 to limit the scope of claims companies face.

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It is not the first controversy the company has faced in the capital, where it was denied a license in 2019, but after a protracted legal battle with Transport for London was granted a two-and-a-half-year license to operate its private rental vehicles. .

The ride and delivery app made more trips worldwide than before the pandemic in the second quarter, enabling it to report free cash flow of $382 million for the second quarter, ahead of City and Wall Street forecasts of approximately $263 million. as recovering demand followed the return of tourist and commuter traffic around the world.

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In its second-quarter results, Uber revealed a nearly one-third increase in the number of drivers and delivery drivers on its global books, to an all-time high of five million, a sign that rising fuel prices and the conditions it offers aren’t stopping people from joining. to sign up with the company even though they often don’t have set hours and pay the overhead of their own vehicle.

Every UK driver now gets holiday pay and pension.

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