Uber confirms it is shutting down car leasing program

blackjackross

Well-Known Member
http://www.foxbusiness.com/markets/2017/09/27/uber-shutting-down-u-s-car-leasing-business.html

“We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach,”

They underestimated the cost of leasing cars and only recently discovered it was losing 18-times more money per vehicle than previously thought. All they had to do was ask any Uber driver and they would have told Uber how much it costs to operate a vehicle.

Really? Isn't this the same company that is racing to put driverless cars onto the streets in the next couple of years? That isn't capital intensive?

So now this is the same company that's going to have to invest billions of $ into procuring a fleet of expensive driverless cars, insure, operate and maintain thousands of cars. If they couldn't estimate something simple like the cost of the Xchange Leasing Program, how do they expect to be able to manage something immensely more complex?

I guess it's not a big issue as long as you're blowing through someone else's money....
 
Last edited:

bpm45

Well-Known Member
Uber will never field a fleet of driverless cars unless they decide to manufacture them themselves. Which I don't see happening in this reality. Some car maker will get into it an existing one but it won't be some software developer like uber that can't even build a competent app.

Their best strategy is to try and maximize the crap out of what they've got because at some point it's all going to be gone.
 

uber78

Active Member
http://www.foxbusiness.com/markets/2017/09/27/uber-shutting-down-u-s-car-leasing-business.html

“We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach,”

They underestimated the cost of leasing covers and only recently discovered it was losing 18-times more money per vehicle than previously thought. All they had to do was ask any Uber driver and they would have told Uber how much it costs to operate a vehicle.

Really? Isn't this the same company that is racing to put driverless cars onto the streets in the next couple of years? That isn't capital intensive?

So now this is the same company that's going to have to invest billions of $ into procuring a fleet of expensive driverless cars, insure, operate and maintain thousands of cars. If they couldn't estimate something simple like the cost of the Xchange Leasing Program, how do they expect to be able to manage something immensely more complex?

I guess it's not a big issue as long as you're blowing through someone else's money....
I don’t understand how uber was losing money on these cars when divers were paying $250 a week for a shitty cars that’s 1000 a month. So how were they losing?
 

tohunt4me

Well-Known Member
http://www.foxbusiness.com/markets/2017/09/27/uber-shutting-down-u-s-car-leasing-business.html

“We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach,”

They underestimated the cost of leasing covers and only recently discovered it was losing 18-times more money per vehicle than previously thought. All they had to do was ask any Uber driver and they would have told Uber how much it costs to operate a vehicle.

Really? Isn't this the same company that is racing to put driverless cars onto the streets in the next couple of years? That isn't capital intensive?

So now this is the same company that's going to have to invest billions of $ into procuring a fleet of expensive driverless cars, insure, operate and maintain thousands of cars. If they couldn't estimate something simple like the cost of the Xchange Leasing Program, how do they expect to be able to manage something immensely more complex?

I guess it's not a big issue as long as you're blowing through someone else's money....
Buh Bye . . . !

" and Dontcha come back no more no more"- Ray Charles/ Hit the Road Jack.

Drivers were abandoning Cars when in the huge minus
The HUGE MINUS THAT UBER CREATED !

" FEED ME SEYMOR " !

I don’t understand how uber was losing money on these cars when divers were paying $250 a week for a shitty cars that’s 1000 a month. So how were they loosing?
Uber tasting some of what i have suffered after 4 Damn Rate Cuts !

" LOWER RATES MEAN MORE MONEY"!
 

Attachments

  • Screenshot_2017-09-27-19-58-56.png
    Screenshot_2017-09-27-19-58-56.png
    67.9 KB · Views: 36
  • Screenshot_2017-09-19-15-22-11.png
    Screenshot_2017-09-19-15-22-11.png
    31.6 KB · Views: 30

mahatma57

Well-Known Member
250 a week just to have car LMFAO
People are stupid af

A friend of mine drives a cab in the NW suburbs. He pays $500/wk to lease the cab. Of course he makes a higher fare rate than Uber drivers, but a $500/wk nut before you start banking is just crazy to me.
 

northsider87

Well-Known Member
let's say it's your only income, and someone rear ends your car.... you're out of a job until you get back driving.

do y'all still think it's a bad option for those who need a temporary car while their car is gonna be in the body shop??

it's not always bad. as long as it isn't a permanent option.

VERY useful for a temporary vehicle.
 

veblenrules

Well-Known Member
A friend of mine drives a cab in the NW suburbs. He pays $500/wk to lease the cab. Of course he makes a higher fare rate than Uber drivers, but a $500/wk nut before you start banking is just crazy to me.
Costs on leased cabs are for a maintained, licensed, and insured vehicle. Cab drivers only pay additional monies for fuel.

The Sun Times had a story on January 20, 2017 (a day which will live in infamy) that Uber had entered into an out of court settlement with the Federal Trade Commission wherein they paid $20,000,000 to keep the case from being formally litigated.. The FTC had alleged that Uber was misrepresenting potential earnings to prospective drivers and was also misleading drivers as to the advantages of their vehicle leasing program. I know that for a while Uber was using Santander, a Spanish bank with problems in the U.S. regarding predatory lending. Could be that drivers were getting wise to the leasing bullshit and Uber wasn't running enough leases to make the operation worthwhile. Of course Uber is now running a full court charm offensive but it could well be too little too late. Boo Hoo!........
 

BeingStewie

Well-Known Member
Uber xchamge would cost 150-250 dollars. When I first started I was leasing shitty cars for $250 per week, includes insurance and maintainance. Then I started leasing at breeze for $250/week with limited mileage but newer, Prius hybrids car. It was a lot of work to catch on payment, but it helped me a lot to bring me where I am now.

Breeze has finally shutdown, and Uber has finally realized that it's not as easy it thought it would be, especially with their low fares. So best of luck releasing the self driving fleet with the current rates. Lol!
 

Pchi

Well-Known Member
Exactly! ! How dumb is that!! If you don't have a car don't waste ur time!! What a waste!! 2 dollar rides for 250 a week! ! Daaaaahhh! ! But look at u in ur brand new wheels!!! Lmao! !


Opening up ur resume to a new job when uber closes it's doors next!!


U love it!!
A blessing in disguise!!
 

baymatt

Active Member
let's say it's your only income, and someone rear ends your car.... you're out of a job until you get back driving.

do y'all still think it's a bad option for those who need a temporary car while their car is gonna be in the body shop??

it's not always bad. as long as it isn't a permanent option.

VERY useful for a temporary vehicle.
it actually is a bad deal because i had a fender bender and looked into it for the 14 days i'll be off the road from this (my full time earning gig at the moment) job.

I didnt bother with uber because i quit that nonsense months ago, but lyft had their express drive program and it has some sketchy terms and restrictions.

You need to pay a deposit of hundreds of dollars, plus the weekly hundreds, plus basically all maintenance except oil and tire balancing which is shit.

you also get excluded from express pay (instant pay) and are required to give a certain ride quota during prime hours each week. if you don't meet those you pay more (or full price) for the car weekly instead of it being free as advertised.

Oh and even though its a newer car you are excluded from the power driver bonus which is like the uber quest kind of.

oh and you are excluded from instant pay and power driver bonus even until the next week of your driving your own car after returning the rental.

essentially you buy a car every year and pay the maintenance on it while driving it and are an endentured servant in the mean time.

i think i can wait 14 days man
 

seanD

Well-Known Member
Costs on leased cabs are for a maintained, licensed, and insured vehicle. Cab drivers only pay additional monies for fuel.

The Sun Times had a story on January 20, 2017 (a day which will live in infamy) that Uber had entered into an out of court settlement with the Federal Trade Commission wherein they paid $20,000,000 to keep the case from being formally litigated.. The FTC had alleged that Uber was misrepresenting potential earnings to prospective drivers and was also misleading drivers as to the advantages of their vehicle leasing program. I know that for a while Uber was using Santander, a Spanish bank with problems in the U.S. regarding predatory lending. Could be that drivers were getting wise to the leasing bullshit and Uber wasn't running enough leases to make the operation worthwhile. Of course Uber is now running a full court charm offensive but it could well be too little too late. Boo Hoo!........

The Santander program was almost legit. Unlike exchange, after you made the payments for 3 years, the car was yours and you didn’t have to give it back, unless you failed to make the payments. Xchange is just ripping off drivers.
 

blackjackross

Well-Known Member
I don’t understand how uber was losing money on these cars when divers were paying $250 a week for a shitty cars that’s 1000 a month. So how were they loosing?
They lost on the resale value of the cars. You can bet that these cars were getting 50-60,000 miles a year on them. What do you think a 3-year old car that cost $20,000 or so with 180,000+miles is worth on the used car market?

They miscalculated how many miles a week a driver would have to put on a car in order to make the weekly nut plus earn any kind of money. Any Uber driver with a GED level education can tell you that after a couple of months worth of driving-----you don't need an MBA from in Finance from Harvard Business School to do that. That's what happens when you have folks in management that don't have real world experience.

A blessing in disguise!!
I agree. That and fingerprinting are going to take quite a few folks off the street. Might relieve some of the saturation.

Uber will never field a fleet of driverless cars unless they decide to manufacture them themselves. Which I don't see happening in this reality. Some car maker will get into it an existing one but it won't be some software developer like uber that can't even build a competent app.

Their best strategy is to try and maximize the crap out of what they've got because at some point it's all going to be gone.
I agree. If/when driversless cars hit the streets, it won't be Uber that will running the show. I predict that it will be a major auto manufacture or a consortium with deep pockets that has the leverage and economies of scale to control costs and manage/maintain a fleet of cars. The S/W that Uber cobbled together----a crappy one at that----is not rocket science. There's relatively little barrier to entry for a company with the capital necessary to put Uber/Lyft out of business. The car companies don't need a middle man ride broker like Uber or Lyft to operate a riderless car fleet. It won't be car-share, as the only purpose for these cars will be to ferry people around.
 
Top