Uber India’s Net Loss Narrows 35% YoY In FY22 To INR 216 Cr

Uber India, the Indian arm of San Francisco-based Uber Technologies Inc., has incurred a net loss of INR 216 Cr in FY22, down 35% from INR 333.9 Cr in FY21. 

Further, it has registered a 4% year-on-year (YoY) increase in its operating revenue at INR 396.95 Cr. Uber India’s total revenue amounted to INR 560.52 Cr, up 4% from INR 538.73 Cr a year ago.

Meanwhile, the company’s expenses decreased 13.4% from INR 985.03 Cr in FY21 to INR 853.07 Cr in FY22. 

While Uber did not disclose what ‘materials’ the cab-hailing giant bought during the year, its ‘cost of material’ accounted for more than 50% of its total expenses at INR 436.91 Cr. Interestingly, the company resisted spending much on employee benefits, expenses of which declined 44% YoY to INR 150.96 Cr in FY22. 

The startup’s unit economics also improved in FY22, as it spent INR 1.53 to earn one rupee in FY22 versus INR 1.8 in FY21. The improved unit economics was also aided by a reduction in advertising expenses, which were down 64% YoY to INR 44 Cr in FY22.

Uber India Under I-T Scanner

Recently, India’s Income Tax department launched a probe into the operations of Uber India. The I-T department claimed that Uber India is not an independent entity of Uber BV, but is the front face of Uber’s Netherland-based unit, Uber BV.

Thus, the Income Tax department treated Uber India as an ‘assessee-in-default’ over the non-compliance of TDS rules. It added that Uber India (the dependent agency) acts on behalf of a foreign enterprise (Uber BV). Consequently, the income generated by Uber BV through transactions with Uber India should be taxed in India.

It is pertinent to note that, despite claims of independency, by the end of FY22, Uber BV held a 60% stake in Uber India, up from 52% at the beginning of the year. Other Uber India promoters include Uber International Holdings BV and Uber International BV with 43.2% and 4.8% stakes, respectively.

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