Is Uber really saying that, as they can't now use an illegal workforce, prices may have to go up?
Illegal migrant crackdown risks pushing up takeaway prices, warns Uberhttps://www.telegraph.co.uk/business/20 ... ay-prices/A Home Office crackdown on illegal “gig economy” workers could push up the cost of delivering takeaways, Uber has said.
The ride-hailing giant, 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”.
In accounts filed at Companies House, 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 warned that “new legislative requirements could have an adverse impact on our business, including expenses necessary to comply with such laws and regulations”.
Takeaway apps have become a route for undocumented workers to earn a living in the UK, with illegal workers drawn to the industry by historically limited right to work checks. Delivery riders are also known to sell their accounts or rent them out on social media to “substitutes”, who may be working illegally, with little vetting.
The opportunity to secure work for newly arrived migrants with no documents has been judged as a pull factor for small boat crossings, with the Home Office demanding delivery companies tackle the problem.
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 that they would go further to spot misuse and suspend accounts.
As home secretary, Yvette Cooper had also planned to change the law to force all gig economy companies to check the legal status of their workers to dissuade migrants arriving on small boats from risking the trip to Britain. Ms Cooper, now the Foreign Secretary, was replaced by Shabana Mahmood as home secretary in a Cabinet reshuffle on Friday.
Officials have also started sharing data on known asylum hotels with delivery companies so they can monitor for attempts by undocumented workers to use their apps.
In its accounts for its UK business, which includes its ride-hailing and Uber Eats division, Uber said its revenues had climbed from £5.3bn in 2023 to £6.5bn last year.
However, its profits dropped from £29.4m to £21.6m. Uber blamed the fall on an “increase in administrative expenses” in its food delivery division.
In February, Uber told The Telegraph it had blocked thousands of accounts since April 2024 after introducing tougher right-to-work checks to block illegal substitutions.
In August, the Home Office’s immigration enforcement teams claimed to have spoken to 1,780 individuals over the course of a single week in July, leading to 280 arrests for suspected illegal working. It said 53 individuals were now having their asylum status reviewed.
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