Mexican Media Brands
Uber May Sell Car-Leasing Unit
Ride-hailing service Uber Technologies Inc. intends to shut down or sell at least most of its money-losing car-leasing operations by year-end, sources tell The Wall Street Journal.
Share
Ride-hailing service Uber Technologies Inc. intends to shut down or sell at least most of its money-losing car-leasing operations by year-end, sources tell The Wall Street Journal.
The company after realizing its Xchange Leasing unit has been losing about $9,000 per car, or roughly half the worth of the vehicle. Uber had though the business, designed to be a breakeven enterprise, was losing $500 per lease.
Xchange Leasing was launched in 2015 with a $600 million investment. Uber intended the service to help incoming drivers with poor credit histories obtain suitable cars. Drivers lease by the week and may return the vehicle on short notice after the first month. The unit operates in 24 cities and holds titles for almost 40,000 vehicles.
Soaring costs have prompted Xchange Leasing to hike its lease rates to more than $500 per month, significantly greater than comparable leases from a car dealer. The Journal’s sources say the higher fees pushed many drivers to work longer hours. Drivers also returned the vehicles in poor shape, thereby reducing their resale value.
RELATED CONTENT
-
Jeeps Modified for Moab
On Easter morning in Moab, Utah, when the population of that exceedingly-hard-to-get-to town in one of the most beautiful settings on Earth has more than doubled, some people won’t be hunting for Easter eggs, but will be trying to get a good look at one of the vehicles six that Jeep has prepared for real-life, fast-feedback from the assembled at the annual Easter Jeep Safari.
-
GM Develops a New Electrical Platform
GM engineers create a better electrical architecture that can handle the ever-increasing needs of vehicle systems
-
Increasing Use of Structural Adhesives in Automotive
Can you glue a car together? Frank Billotto of DuPont Transportation & Industrial discusses the major role structural adhesives can play in vehicle assembly.
