London’s financial newspaper City AM is reporting that Addison Lee’s profits are being driven down by rising competition from mobile-based apps.
It says the UK private car hire company has reported post-tax earnings for the year to August have dipped to £11.6m, down almost two-thirds on the previous year.
City AM adds that new players in the market, led by Uber, have “piled the pressure” on industry incumbents as they rapidly expand around the world.
In the year to last August, Addison Lee pulled in sales of £197m, up slightly from £196.6m in the year before. A strategic review that had a price tag of £4.2m and restructuring costs of £3.6m dragged on profits.