Uber taxi service is planning on shutting down its vehicle leasing subsidiary. Dara Khosrowshahi, the newest CEO of Uber taxi service company, says Uber company looks to improve profits as a whole by focusing on improving overall. She included that Uber Taxi Service Company has recently decided to stop the Xchange Leasing with Uber Taxi Service. The Khosrowshahi says Uber plans to move towards a less capital intensive approach. He hopes this move will increase the profits of the taxi company service.
In September 2017 The Wall Street Journal reported Uber Taxi Service was losing almost ten thousand dollars per vehicle they were leasing out with their Xchange leasing. However, Uber Taxi Service agreed at that point. They began to phase out their contacts with the auto-lending business in late September 2017.
Uber Taxi To Faze Out Uber Xchange
Their numbers were not adding up to expectations. Uber Taxi Service reports that they were losing eighteen times more money. More so than they were planning on each car that was being leased through Xchange. The worst part of the taxi service company was the autos being leased were about half of the typical price of a regular lender car.
Travis Kalanick says at the time Uber still signed because they did not want to abandon Xchange auto-leasing. The reason being the employees. When Kalanick saw their loss of each leased vehicle, he made plans for the company to become more financially responsible. Uber was losing millions of dollars on the leased autos throughout the United States. The company had to start selling some of its assets to stay afloat.
Sadly, around five-hundred people will lose their jobs once they shutdown of Xchange auto leasing. The reason being Uber’s taxi service. According to Khosrowshahi, they plan to help out as many employees as possible while they are in the process of rebuilding the taxi service business.