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Uber warns UK food delivery costs could rise amid crackdown on illegal migration

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Highlights:

  • Uber warns new government rules on illegal gig economy workers could increase delivery costs in the UK.

  • Uber UK filings show revenue rose to £6.5bn in 2024, but profits fell to £21.6m due to compliance costs.

  • Stricter checks by Uber, Deliveroo, and Just Eat have removed thousands of accounts using facial recognition and document verification.

  • Government enforcement in July 2025 led to 1,780 interviews, 280 arrests, and 53 asylum reviews for suspected illegal working.

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  • Consumer impact: Delivery prices may rise as Uber and other platforms face higher compliance expenses.

Uber has told Companies House that new government measures to clamp down on illegal working in the gig economy could raise the cost of delivering takeaways in the UK. The company said it welcomed Home Office efforts to deter migrants and people smugglers from risking Channel crossings but added that “new legislative requirements could have an adverse impact on our business, including expenses necessary to comply with such laws and regulations.”

Uber and the role of delivery apps in providing work

Food delivery apps have become a route to income for undocumented migrants, in part because right-to-work checks on platform couriers were historically limited. The sector has also seen a market for rented or sold courier accounts, allowing third parties to work under another person’s login. Regulators and some campaigners say those patterns have created enforcement challenges.

Uber, Deliveroo and Just Eat: tougher verification

In response, major platforms including Uber, Deliveroo and Just Eat have tightened right-to-work verification over the last year. Measures cited by industry and government reporting include enhanced document checks and facial-recognition steps to confirm identity. Platforms report that thousands of accounts that failed the new checks have been removed from their services.

Uber UK finances: revenue growth, falling profits

Uber’s UK filings show revenue growth for the business year but a fall in reported profits. Revenue rose from about £5.3 billion in 2023 to about £6.5 billion in 2024, while operating profit fell from roughly £29.4 million to about £21.6 million. Uber attributed the profit decline in part to higher administrative and compliance costs in its food delivery operations.

Uber account suspensions after tougher checks

Since introducing tougher right-to-work checks in April 2024, Uber has said it blocked thousands of rider accounts. The company reported those account suspensions to regulators and cited the additional checks as part of its wider compliance work.

Government enforcement numbers and partnership with platforms

Home Office enforcement activity has increased alongside the companies’ verification efforts. Between 20 and 27 July 2025, immigration enforcement teams stopped and spoke to 1,780 people and arrested 280 on suspicion of illegal working; asylum support for 53 of those detained is under review. The government has also moved to share data with platforms, including information on asylum accommodation, to help detect potential illegal employment.

Implications for the gig economy and consumers

The government’s enforcement drive aims to reduce illegal working in the gig economy and to close routes used by people smugglers and others. Regulators and platform operators say stronger checks and data sharing are intended to prevent abuse of accounts and to ensure legal employment. Platforms warn that the administrative, technical and legal costs of those measures will increase operating expenses, and they say some of that cost pressure could be passed on to consumers in the form of higher takeaway delivery fees.

What to expect next for UBER and delivery services

Delivery platforms are likely to continue refining verification and monitoring processes while working with government enforcement teams. For UBER, the immediate commercial impact reported in its UK filings and in platform statements is higher compliance-related spending and reduced short-term profitability in the delivery division. Officials and industry observers say a further tightening of checks could reduce the supply of available couriers, which would increase labor costs for platforms and could raise delivery prices for customers.

 

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