Uber and Uber Eats Report Divergent Financial Outcomes in NZ

Uber and Uber Eats, both subsidiaries of Uber Technologies, Inc., reported contrasting financial performances in New Zealand for the year ending December 31, 2024. The food delivery segment, Uber Eats, experienced a significant increase in net profit, while the ride-hailing service saw a decline in its earnings.

Uber Eats generated a net profit of $2.4 million, a notable rise from $1.7 million in the previous year. Revenue for the food delivery service surged by 17%, climbing from $255.3 million to $298.5 million. This growth reflects the increasing demand for food delivery services, which has been bolstered by changing consumer habits and the ongoing popularity of online ordering.

In contrast, the Uber ride-hailing business faced a downturn. Its net profit dropped to $1.1 million, down from $1.6 million in 2023. Revenue for the ride-hailing service also fell, decreasing from $109.9 million to $104.8 million. This decline raises questions about the competitive landscape of ride-hailing in New Zealand and indicates potential challenges the company may face in maintaining its market position.

Tax Contributions Highlight Disparities

Both segments reported minimal tax contributions despite their substantial revenues. Uber Eats declared an income tax expense of $539,682, a slight decrease from $609,597 in 2023. The Uber ride-hailing service reported an income tax expense of $262,948, down from $609,507 the prior year. The combined tax contributions of less than $1 million have sparked discussions regarding corporate tax responsibilities in New Zealand.

The financial outcomes of Uber and Uber Eats underscore the complexities of operating in a competitive market. While Uber Eats capitalized on the growing demand for food delivery, Uber’s ride-hailing segment faced challenges that affected its profitability. As the landscape continues to evolve, these companies may need to adapt their strategies to navigate the shifting dynamics of consumer preferences and regulatory environments.

Overall, the results for the year ending December 31, 2024, illustrate the differing trajectories of Uber’s business segments in New Zealand, highlighting the potential for growth in food delivery while emphasizing the hurdles that remain in the ride-hailing sector.