Uber Technologies is in the news again, this time relating to an expansion. The car-hailing company is planning to relocate its international headquarters in Amsterdam to a larger office space by this year end, along with increasing its staff to 1,000 in 10 years. Uber started operating from Amsterdam since October 2012, where it has departments for marketing, sales, research, and operations. A team of engineers also work on Uber’s food delivery service, uberEATS. While Amsterdam provides cheaper engineers to Uber compared to the U.S., it also offers a great internet infrastructure. Another incentive for Uber to base its international headquarters in Amsterdam is the corporate tax benefits of this Scandinavian economy. Amsterdam is also in geographic proximity to many countries of Europe, where the car-hailing company can spread out its services.
Uber faces Issues Regarding Tax Structure
Talking about the corporate tax benefits, Uber collects the revenues from countries like England in its Amsterdam office and processes it in the Netherlands. A major benefit of processing the revenue in Netherlands is the comparatively low rate of corporate taxes here. Undoubtedly, Uber has faced issues and controversies in the past due to such policies. In 2015, an association of cab drivers of London, the London Private Hire Car Association; had forwarded a letter to the tax committee of the European Parliament; which stated that Uber’s tax structure for Europe is based on avoiding industry tax. But Uber has reportedly denied any wrongdoing.
In the same year, Uber’s Amsterdam office got raided twice by Dutch regulators relating to its UberPOP taxi service. The national financial crimes prosecutor of Netherlands suspected the ride-hailing company of working without proper licenses. Eventually, in November 2015, the California company discontinued this service in The Netherlands.
Uber’s Expansion Plans in Amsterdam
Recently, Uber Technologies announced that its international headquarters in Amsterdam will be relocated by the year end, along with an increase in its size. This new office, named ‘The Cloud’, is situated in the city center, having a 20,000 square-meter building. Uber plans on renting almost 8,300 square-meters, nearly half of the entire 20,000 square-meter building.
Not only this, the ride-hailing giant also mentioned that it plans to increase its staff base to 1,000 people in a span of next 10 years. Presumably, this move of relocating to ‘The Cloud’ is a part of Uber’s plans to expand its staff and international business.
Uber has made this announcement during tough times. We wonder if mentioning an expansion is a move to instill goodwill among users.