Uber Plans Sale or Consolidation of Car Leasing Program
- Xchange offers 40,000 vehicles through 14 U.S. showrooms
- Program’s leases said to cost Uber about $9,000 a car
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Uber Technologies Inc. is trying to unload its costly U.S. subprime car-leasing program.
The ride-hailing company’s board determined Xchange Leasing, a wholly owned subsidiary, is unsustainable and should be sold or consolidated into a smaller unit within Uber, according to a person familiar with the plans. The board decided last month to wind down the program, which provides subprime car leases to drivers in its service, after discovering it was significantly more expensive than originally thought. Xchange had been estimating losses of about $500 per car, but they are actually closer to $9,000 per car, the person said, asking not to be identified discussing private information.