Addison Lee vows profits return in Uber fight

Addison Lee boss Andy Boland on Monday insisted it will make profits again this year, after being driven into the red by spending big to fight off the threat of Uber.

The company, which provides up to 25,000 rides a day in the capital, made pre-tax losses of £20.8 million off sales of £345.7 million in the year to last August, compared with £10.5 million profits the year before. Boland said that beefing up its website and apps, as well as one-off costs from snapping up a string of businesses over the past couple of years, had hit profits.

He added: “We knew that and we planned for that. It will help us scale up more quickly in the future in an incredibly competitive market.” He expects revenues to hit the £400 million mark this year.

Addison Lee has been making greater efforts to expand in America, and in September bought Tandem — a car booking platform — for an undisclosed sum. The business has faced criticism, alongside Uber, over working conditions. It suffered a legal blow last year after a tribunal said that Addison Lee drivers were “workers” and were owed holiday pay and the minimum wage.

Boland said: “We have a good relationship with our drivers and a model that is working well.” He added that driver earnings have increased by 7%.