This ride hailing company is making huge profits in Oz. Everyone is in complete awe that how can this happen? That is one big question every one of us wants to be answered. The value which has been incurred is just an approximate value and not an exact value. If just an approximate value could double the returns, then if we calculate the exact revenue, it could be unpredictable.
The company has mentioned that only 75% of the transactions are actually considered. The rest of the 25% of the transactions goes under the low tax provinces. The authorities of law stated that, they are auditing the revenues of around 35 online business dealing companies. They need to channelize the income returns to the low cost precincts.
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In the year 2015, the revenue which Uber incurred was $18.1 million. But, for the year of 2016, until June, the total income return would account up to $36.4 million. This is only the 75% of the income returns, if calculated on the whole it would be around $45 million, which is almost close to 2.5 times more than the last year. This is only from the 20% commission charges which they take from the drivers.
Twofold of the revenue is due to the high usage of the service amongst the citizens. There is something which we need to consider is, that the service was considered to be illegal. How did the company manage to provide a service to people, which was illegal? Above all making twice the amount of income return is really shocking.
It is said that Perth has almost spent around $20 million just on the ride sharing service. This is just 10-12 percent of all the income returns which the company has acquired so far. The officials from the company stating that, their income tax return filing is authentic. There is no need for them to forge or hide details of the actual benefits which the company has received so far.
CEO of Uber states that, they have doubled their revenue once in every 6 months. The organization is right now one of the most famous and acknowledged privates firms in the world. People are happy with the service they are receiving through this company. On the urge by the citizens, the service is getting legalized in most parts of the world.
The company has been providing cost effective rides to all its customers. That is one of the main reasons it has been able to reach the masses and make it this big. It has topped the charts of consumer voted services and has made a huge mark in the market. Amongst all the peer-peer sharing economy, companies this one has made to the first place.
Uber has been breaking all the traditional way of trading business. It has adapted to the most effective way to get people’s attention, TECHNOLOGY. This is what is ruling everyone on the earth and the company has made the best out of it. It has just been 4 years into the business, there wouldn’t go a day where someone is not using this service.
Most of the commuters have an iPhone or an Android phone in today’s generation. They are consumed by the colorful applications which they use on their phones. This is one of the best ways to get our service to the public, build an app and host it on Play store or App store. The demand for this service has been considerably increased and still keeps increasing.
A potential growth has been shown by them, and the investors want to invest in Uber. The valuation for the organization has multiplied four times in past one year. This data is just for the private investors who have made investments in the company. What it has made in Australia is just a fraction of the complete revenue it has made so far throughout the world.
All the investors are trying to abduct a piece of Uber if possible, to make great profits. The sharing economy industry is ruled by this company in the business market and all its contenders are envious about it. Negotiations are made by the investors and they want to know, how much percent of the business will they be able to deal with? If given a chance, they would just take over the complete business itself.
Its investments have been mostly in regulatory costs and professional costs. The company has been struggling with the authorities about the tax exemptions. It has also opposed the ride sharing business in the country and held it to be illegal. But, still people have not stopped using the service; they have continued to use it.
Uber has been facing many issues from the authorities of law, but has managed to do well. The state government officials have accepted to legalize this service in all parts of Australia. It will take a span of around two years for the legalization to be in effect. That is one thing which the business heads of the company are happy about.
Amidst all this, the company has developed a new rival from the locals of Oz, which is GoCatch. It has already served in 2 different cities and is now on the third one, which is Melbourne. Its counterpart has been doing a pretty good business so far. The company is supposed to be valued around $62.5 billion on the global economy.
Actual revenue deposits incurred are not the same as shown in the stats. The base for Uber Australia is in the Netherlands, which comes under low tax jurisdiction. It is stated that according to the corporate tax avoidance it considers only three fourth of the annual income. The rest of the one fourth part of the income has to be regulated to the cities which come under low tax provinces.
The annual turnover for the company is pretty huge and the valuation seems to be not convincible. A billion dollar is certainly is a big deal to any authority of law, and increasing it to 10 times value. That will make them feel skeptical and cynical about the returns from their investments. The company has faced a million of issues from all the corners of the world.
In a few parts, people want it to regulate the services with strict rules. Background verification is mandatory in a few cases, as safety and security of the riders are involved in here. There are a few cities where the services were suspended and stopped, as they were unable to follow certain rules. The cost cutting has also been one of the main issues which have been faced in the past.
It is fair enough to have a few doubts about the company earning a few billion dollars more than the actual. But, we cannot just brandish that they are providing actual facts to us. Maybe in a few cases, the law would have found flaws in the regulation of rules as well as money. As a matter of fact, the company is willing to provide all authentic documents and follow the rules set by the law.
The latest funding by the investors will make Uber to reduce their ride fares from around 20% or more. As the investment is huge, it is good for the company to reduce it. It will bring in more crowds to the business and the expansion will be bigger and better. Investors have taken a leap of faith and invested in the company. A day will come, when “Uber for everything” will be ruling the world and huge amount of profits will be made.
Author Bio :-
Anand Rajendran is the CEO and Co-Founder of Gacie, a company that offers best app development services for android and IOS phones. A digital marketer by profession, he aims at implementing the latest ideas in internet marketing and mobile apps. Rideyo is the recent Uber Clone Script mobile app from his company that fulfills the exact needs of taxi business with advanced features.