A Home Office crackdown on illegal “gig economy” workers could push up the cost of delivering takeaways, Uber has said.
Uber, which operates the Uber Eats take-out app, warned its delivery expenses could rise in response to new rules intended to “clamp down on illegal working”.
Uber’s UK division said it “welcomed” a Home Office effort to dissuade migrants and people smugglers from risking trips on small boats across the Channel to Britain.
However, it simutaneous warned “new legislative requirements could have an adverse impact on our business, including expenses necessary to comply with such laws and regulations”.
Deliveroo, Uber Eats and Just Eat have all voluntarily introduced “right to work” checks on their apps over the past year, including enhanced facial recognition and document checks. They have kicked thousands of workers who failed checks off of their apps.
However, in July, the Home Office warned there “continues to be abuse in the system” and secured commitment from the companies they would go further to spot misuse and suspend accounts. In its accounts for its UK business, which includes its ride-hailing and Uber Eats division, Uber said its revenue had climbed from £5.3bn in 2023 to £6.5bn last year. However, its profit dropped from £29.4m to £21.6m. Uber blamed the fall on an “increase in administrative expenses” in its food delivery division.
Author: George Shaw
Former BBC journalist and founder and CEO of an award-winning London advertising and PR company for 20 years, providing restaurant consultancy services. Spent a decade as the director of communications of the Asian Catering Federation in the UK and lead judge for its various restaurant and chef awards programmes. Now returned to journalism, specialising in food and travel and currently the Editor-in-Chief for Taste London, Taste Asia, the Good Curry Guide and CEO of International Culinary Guides.