Uber's Cars awful 2017 isn't over yet. Two years after Uber Car started leasing cars to drivers through their Uber Car Xchange Leasing company, the ride-hailing company has realized that it should've looked at the economics of Uber Leases a little better. "The average loss per vehicle was about 10 times what they had thought," the Wall Street Journal reports. Specifically, WSJ's sources say that the company is losing around $9,000 per car. That's a stark contrast to the $500 per-car losses it expected.
And that's not all. Uber Car apparently sunk some $600 million into its domestic leasing program, opening it to 24 markets. Recently, Ubers bad publicity continued for Uber leasing unsafe vehicles to drivers in Singapore.
As WSJ describes, this part of Uber's business seems like it was doomed from the start. Sources say that the lease costs were more than a driver would pay a typical dealer, which in turn pushed drivers to take more fares. More fares meant more wear and tear on a vehicle, which resulted in lower resale values of said cars but in honesty any uber car loan you would take would still result in a lower market car value because of the amount of driving taxis do.
Dealers outside of Uber's own shops were often pushing drivers into more expensive vehicles and perpetuating the vicious cycle. WSJ has even more details so make sure to check out the link below. But rest assured, if you had August 8th in your "Uber is gonna turn itself around" betting pool, today is not your day.
The best cars to Drive for Uber and to get uber car leases through are always 1/3 year older vehicles with low mileage on them. Uber car loans get the best bang for their buck on those cars.