Based on what Auto Finance News has to report, the ride-hailing giant Uber has not called it quits to its subdivision Uber Xchange Leasing Program.
Facing several months of losses and after weeks where it kept the people guessing, earlier Uber had noted that it will shut down its subsidiary leasing initiative pertaining to the US market.
However, Uber at the moment is following the buyers and is still on their trails. This was reported by an Uber spokesman who when speaking to Auto Finance News also noted that the brand will continue to provide service even when the originations are stopped.
The Uber spokesperson added that leases will be provided till the moment the driver base wants to return them back. This could either be when a notice is issued within two weeks time or when the lease is no longer valid. It signifies that the drivers cannot obtain a new lease or renew an existing one.
There will be no impact related to the international services which Xchange Leasing provides he noted.
Based on what Grayson Brulte who is the President of the brand Brulte & Co had to report to Auto Finance News the previous month, the venture taken by Uber to reinforce or sell of Xchange Leasing could be an effective and clever strategy. Yet, the chances of another brand to acquisition it is slim as the subprime leasing is associated to be an enterprise venture which is “about to burst”.
The venture had its inception in the month of July 2years back so as to help the drivers to get vehicles. It was also conceptualized to motivate the driver base to still be related to the platform so that the leasing expenditure and costs can be paid.
This was subject to effect immediately after the Uber executives were provided insight on the fact that the loss factor was signified to be a mean of $ 9000 per car. Based on what Wall Street Journal had to say this statistic is considerably higher than the one predicted earlier which was approximately $ 500 per car. Further, Uber was thinking to contemplate scaling back the presence of Xchange limited only to some handful of cities where Uber carries out it’s functioning. This is featured as an addition to its contemplation related to dealing with an outright sale.
In the event Uber proceeds with closing the Xchange program, then it is implied that 500 jobs in Uber are prone to be affected.
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