Uber soon to end car leasing business

Troubled ride hailing company Uber is reportedly mulling to put an end to the car leasing arm of its business.

The endeavor is actually costing the company more than they expected, so much so that they are thinking of shutting it down.

This is according to a report from CNBC who have heard from their sources that Uber is planning to shut down its car leasing business, or alternatively they could be thinking of selling it off, or maybe consolidate it to make it more efficient.

Read also: Uber mulls giving shares to drivers to make them stay

A report from The Wall Street Journal has suggested that Uber is making losses as much as $9,000 per car, versus the $500 that they had initially predicted.

Assuming this is true, clearly this is not a very good business model. Should Uber decide to shut it down, it is said that 500 jobs out of the 15,000 could be affected by it.

Interestingly enough Uber drivers have long complained about the high lease payments, but it seems that even what Uber charges isn’t enough to cover its losses, so really, it doesn’t seem like anyone is winning in this situation.

 

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