Uber and Uber Eats Report Diverging Financial Results in NZ

Uber and its food delivery service, Uber Eats, reported contrasting financial results for the year ending December 31, 2024, in New Zealand. Together, they generated a total revenue of approximately $402 million, yet their tax contributions were notably low, totaling less than $1 million.

Uber Eats experienced a significant upswing in its financial performance. The service’s net profit rose from $1.7 million in 2023 to $2.4 million in 2024. Revenue for Uber Eats surged by 17%, climbing from $255.3 million to $298.5 million. This growth reflects the increasing demand for food delivery services across the region.

In contrast, Uber’s ride-hailing segment faced a decline in profitability. The net profit fell from $1.6 million to $1.1 million, while revenue decreased from $109.9 million to $104.8 million. Despite the drop in profits, Uber’s operational challenges in the ride-hailing market highlight a shift in consumer preferences, particularly in the wake of the pandemic’s impact on transportation services.

Tax contributions from both companies have come under scrutiny. Uber Eats reported an income tax of $539,682, which is a slight decrease from $609,597 the previous year. Meanwhile, the Uber ride-hail business reported an income tax expense of $262,948, down from $609,507 in 2023. These figures raise questions about the tax obligations of multinational corporations operating in New Zealand.

As both services continue to adapt to changing market conditions, their financial trajectories suggest a growing reliance on food delivery amidst challenges facing traditional ride-hailing. The contrasting fortunes of Uber and Uber Eats may influence future business strategies and tax policies in New Zealand and beyond.

This financial snapshot underscores the complexities of operating in diverse markets and the varying impacts of consumer behavior on different segments of the business. As Uber and Uber Eats navigate these challenges, stakeholders will likely keep a close eye on their performance in the coming years.