Uber ends subprime car-leasing
Uber is phasing out its subprime car-leasing division, Xchange Leasing LLC. Created in 2015 to disrupt the auto loan industry, it now turns out that Uber's losses per vehicle were around $9,000 per vehicle, or 18 times higher than the average of $500 it expected, writes the Wall Street Journal.
Most of the division will be sold off or closed by the end of the year, and many of the 500 employees – 3% of Uber's overall staff – could lose their jobs. There is however a chance that Uber will retain a core of Xchange Leasing's business.
That business consists of offering subprime leases to Uber drivers with bad credit scores. Xchange is part of Uber's Vehicle Solutions programme, developed to make sure qualified drivers would not need to drive substandard vehicles. The programme also offers rentals, traditional auto loans and discounts with certain manufacturers.
| 09/08/2017 | Frank Jacobs