zzdcar
Home
/
Reviews
/
Tech
/
Uber Plans To Significantly Alter Its Reportedly Disastrous Subprime Lending Program
Uber Plans To Significantly Alter Its Reportedly Disastrous Subprime Lending Program-July 2024
2024-02-19 EST 22:10:39

Uber has long been criticized for lending practices designed to reel in prospective drivers to the ride-hailing company, particularly their program to . Now, facing significant losses, the company’s planning to wind down the lending business, according to the .

Uber’s business model requires a constant influx of drivers, so it’s taken to investing in controversial leasing programs. But those options haven’t come without controversy.

The WSJ reported last week that Uber knowingly leased defective Honda Vezels to drivers . In June, Quartz looked into Uber’s leasing efforts with third-party vendors in New York City and found . (The company said it planned to temporarily shutter the NYC program while it reviewed the claims.)

Uber is hoping to close the lending business by the end of 2017, WSJ reported, citing unnamed people familiar with the matter. The end of the Xchange Leasing Program could impact as many as 500 jobs in the company, the newspaper said, but a source familiar with Xchange told Jalopnik that some employees could be moved into Uber’s main business in, say, customer support areas.

Putting aside the problems found in , as well as other subprime lenders , the ride-hailing company’s program was more or less an unmitigated disaster, according to the WSJ report (emphasis ours).

Uber executives were prompted to pull the plug on the auto-leasing unit in part because they recently came to a stunning realization: The .

The Xchange Leasing division had been estimating modest losses of around $500 per auto on average, these people said. But managers recently informed Uber executives that the losses were actually .

The source familiar with Xchange said the company and its board of directors decided to significantly alter Xchange in order to provide vehicle options to prospective drivers.

If there is one quote that sums up the ethos of Uber, it might be this cut from the company’s…

Altering Xchange is part of an effort to adjust Uber’s business model, the source said, adding that there’s more affordable options available to connect potential drivers with a vehicle, if one’s needed.

While Uber has been embroiled in a sea of scandals this year—including an internal sexual harassment investigation, federal investigations into tactics it used to allegedly subvert authorities, the firing of its firebrand CEO, and a high-profile lawsuit over self-driving technology with Google’s self-driving car project—the treatment of Uber drivers has been relatively understated in 2017.

Still, the government has scrutinized the company’s practices for drivers: In January, Uber from the Federal Trade Commission that it exaggerated how much drivers could earn on its website and Craigslist ads.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Tech
GM Says It's Dropping Apple CarPlay And Android Auto Because They're Unsafe (Update)
GM Says It's Dropping Apple CarPlay And Android Auto Because They're Unsafe (Update)
GM is still dealing with the fallout of its decision to drop Apple CarPlay and Android Auto in favor of developing its own in-house system. In the last eight months, the company has had to deal with while still maintaining its in-house system will be “.” Since neither of...
Jul 29, 2025
Danish Investors Dump Tesla Shares After Elon Musk Calls Strikes In Sweden 'Insane'
Danish Investors Dump Tesla Shares After Elon Musk Calls Strikes In Sweden 'Insane'
Danish pension fund PensionDanmark is dumping all of its stock and putting the U.S. EV maker on its exclusion list of the companies it chooses to invest in – or not. The fund is selling all of its shares due to Elon Musk’s refusal to enter into labor agreements...
Jul 29, 2025
Volkswagen EVs Can Now Power Your House For Two Days (Update)
Volkswagen EVs Can Now Power Your House For Two Days (Update)
Experts have said that one of the ways to speed up EV adoption is for them to support . The ability for owners to power their house off their car or from the grid is vital. Just nine EVs on the market currently support bidirectional charging, but now VW...
Jul 29, 2025
Biden’s First EV Charging Station Goes Online After $7.5 Billion In American EV Investments
Biden’s First EV Charging Station Goes Online After $7.5 Billion In American EV Investments
Despite in investments for the development of in the , not a single charging station had gone live thanks to — until now. The first EV charger paid for by Biden’s Bipartisan deal has come online in Ohio, according to , which marks the operational start of what the...
Jul 29, 2025
Costco Will Sell The Chevy Blazer EV At A Discount To Go With Your Rotisserie Chicken
Costco Will Sell The Chevy Blazer EV At A Discount To Go With Your Rotisserie Chicken
knows that you keep coming back for the and Kirkland brand, but you can now also buy a cheaper at your local warehouse. Chevy notified its dealers that members are eligible for a $1,000 rebate on the through January 2, according to . The discount is part of ,...
Jul 29, 2025
Truck Fans Would Rather Wait For A Toyota Tacoma EV Than Buy A F-150 Lightning Or Cybertruck
Truck Fans Would Rather Wait For A Toyota Tacoma EV Than Buy A F-150 Lightning Or Cybertruck
fans are already cooling on despite more options on the market and news of upcoming models from the likes of Chevy and Ram. The and have yet to be released, while the has recently joined the and for sale in the U.S. And, yet, all of these current and...
Jul 29, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved