NEW YORK, January 1, 2026, 15:51 ET — Market closed.
- Uber shares last closed down 0.5% at $81.71; U.S. markets were shut Thursday for New Year’s Day.
- UK outlet LBC reported Uber is rewriting driver contracts outside London to shift VAT liability ahead of a rule change due Friday.
- Investors are watching how the UK tax change is implemented when U.S. trading resumes.
Uber Technologies’ shares last closed down 0.5% at $81.71 on Dec. 31, after a UK report said the company is rewriting contracts with drivers outside London to shift value-added tax liability ahead of a rule change due Friday. U.S. markets were closed on Thursday for the New Year’s Day holiday.
The British rule change would add 20% VAT — a sales tax — to private-hire journeys in London booked through apps such as Uber and Bolt from Jan. 2, the London Standard reported. “The Government’s action today to change the rules will mean higher prices for passengers in London,” said Andrew Brem, Uber’s regional general manager for the UK. The Standard
That matters for Uber because the tax base can determine whether VAT is charged on the full passenger fare or just Uber’s commission, shaping rider prices, driver earnings and the company’s take-rate — the cut it keeps from each trip.
The dispute hinges on whether platforms are treated as the supplier of the ride or an intermediary. Outside London, operators can structure an “agency” model where drivers contract with passengers directly, potentially limiting VAT exposure if drivers are below the VAT registration threshold, UK tax specialists have noted. Tax Adviser
LBC reported Uber’s revised terms frame it as a booking agent outside London, while the agency model is not allowed under Transport for London rules. The report said the timing lines up with the new VAT treatment taking effect on Friday.
Uber shares are up about 35% over the past 12 months but down about 6% over the past month, according to FinanceCharts data.
Rival Lyft last traded up about 0.4% versus its prior close, while delivery peer DoorDash was down about 0.7%, based on the latest available quotes during the holiday shutdown.
The backdrop is a U.S. market that finished 2025 near record territory, with stocks easing on the final trading day of the year after a strong run, according to market reports.
Before the next session on Friday, traders will be watching whether UK policymakers, regulators or industry groups push back on how platforms implement the VAT change, and whether Uber signals any pricing response in London versus the rest of the country.
Investors are also looking toward Uber’s next quarterly update for the December quarter, with third-party earnings calendars listing Feb. 11 for the report. Uber’s November results included a fourth-quarter outlook that investors will revisit for any revisions, including bookings growth and profitability trends.
Technically, the stock is hovering around the low-$80s; in the last regular session it traded between $81.56 and $82.48, levels short-term traders often use as immediate support and resistance.
With U.S. trading paused for the holiday, the next clear catalyst for the shares is how quickly the UK VAT story feeds into expectations for demand and margins when markets reopen.
