NEW YORK, Jan 4, 2026, 20:40 ET — Market closed
- Uber is set to draw focus after a report said it rewrote UK driver contracts outside London to limit the impact of new VAT rules.
- The stock last closed up about 1.4% at $82.86, but sits below key moving averages near $88.
- Investors are watching UK pricing fallout, a heavy U.S. data week (ISM Monday, jobs Friday) and Uber’s next earnings window.
Uber Technologies Inc (UBER) shares are likely to be in focus when U.S. trading resumes on Monday after a report said the company rewrote driver contracts outside London to reduce exposure to Britain’s new VAT regime, which would have lifted the tax take on app-booked rides. The Economic Times said the changes shift VAT liability to drivers — many below the £90,000 VAT registration threshold — potentially blunting a Treasury revenue projection of about £700 million a year. 1
Why it matters now: VAT (value-added tax) is a consumption levy that can alter what riders pay and what the platform keeps once fees and taxes are applied. When those rules change, the hit can show up quickly in pricing, demand and margins.
For investors, the bigger read-through is regulatory volatility. Uber’s “take rate” — the portion of each booking it keeps as revenue — becomes harder to defend if taxes force price jumps or push riders to cheaper alternatives.
Uber has warned that the change will bite hardest in London. Andrew Brem, Uber’s regional general manager for the UK, said in a November statement the rule change “will mean higher prices for passengers in London, and less work for drivers.” 2
Uber stock last closed on Friday at $82.86, up about 1.4% from Dec. 31, after trading between $81.47 and $83.66, according to Yahoo Finance data. The shares remain below the 50-day and 200-day moving averages — both near $88 — a popular technical gauge that tracks the average closing price over a set period. 3
Macro data could also steer sentiment as the first full trading week of the year gets underway. The ISM manufacturing survey is due Monday and the U.S. nonfarm payrolls report follows on Friday; BMO Capital Markets expects job growth of about 50,000 with unemployment at 4.6%, Kiplinger wrote. 4
But the UK tax work-around is not a clean win if regulators decide the revised contract structure still leaves platforms on the hook, or if higher London fares curb trip volumes and driver supply. Any demand wobble would land at an awkward time for consumer-facing names, with investors already looking for proof of pricing power.
The next hard catalyst for Uber investors is the company’s next results, expected on Feb. 4 at 8 a.m. EST, according to Yahoo Finance’s earnings calendar. Uber’s last quarterly update showed revenue up 20% year-on-year to $13.5 billion, and investors will be watching bookings, profitability and cash flow commentary for early 2026. 5
