Mass sack imminent as Uber mulls shutting down its car leasing business

Owing to heavy losses, Uber has decided to pull out of its car leasing business in the US – a move which could affect as many as 500 jobs, according to a report in the Wall Street Journal.

The two-year-old business, Xchange Leasing, loaned vehicles to drivers who couldn’t afford one due to poor or non-existent credit ratings. However, it was reported last month that the program was costing Uber 18 times more per car than previously expected and the ride-hailing giant was considering to shut down the business.

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Now, the move has been confirmed by a spokesperson of the ride-hailing company who told WSJ: “We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach”.

The leasing business, which has a fleet of around 40,000 cars and 14 showrooms across the US, employs some 500 full-time staffers – 3% of Uber’s total workforce – who could be at the risk of losing their jobs with the move coming into effect.

However, it is still unclear whether Uber will shift these employees into other divisions, or move ahead with its first mass-layoff in eight years.

 

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