Background: Uber is the rideshare company which started in San Francisco. It quickly became a dominant global player in ridesharing and food delivery... launching in Australia in 2012. For years, it also famously operated at a loss as part of an aggressive growth strategy. Think of all the celebrity ad campaigns featuring Kim Kardashian, Magda Szubanski, Cher, Rebel Wilson - even The Wiggles.  

What happened: Australians spent a massive $14.5 billion with Uber last year, from rides and Uber Eats orders to subscriptions and late-night "I deserve a treat" burgers. From that, Uber generated about $2.12 billion in gross profit.  

What else: But... almost all of it disappeared. Uber reportedly spent just over $2 billion on "administrative expenses," leaving Uber Australia with a final net profit of just $8.7 million from $14.5 billion in revenue.  

What's the key learning?

💡 The real money in business isn't made where the sales happen, it's often made where the profits end up. Gross profit is what's left after direct costs are paid. For Uber, that’s the money left after paying drivers, delivery partners and the costs tied directly to rides and deliveries - and that came to $2.1 billion last year.

💡 After gross profit comes net profit, where admin, marketing, software, legal, and other overheads come into play. For Uber Australia, the biggest cost wasn't operations - it was admin expenses, including $1.85 billion in service fees paid to related overseas Uber entities.

💡 So, Uber Australia effectively made strong earnings, then transferred a large portion to other parts of its global business. It's a practice known as transfer pricing - which helps explain why, despite $14.5 billion in revenue, it reportedly paid just under $15 million in income tax.