WASHINGTON (dpa-AFX) - Uber Technologies Inc. is reportedly getting out of its U.S. auto-leasing business due to heavy losses.
According to WSJ, the ride-hailing company decided to wind down its leasing business after finding that it was losing 18 times more money per vehicle than previously calculated.
Uber had started the Xchange Leasing division two years ago to attract drivers whose credit prevented them from getting their own cars. The company had estimated modest losses of $500 per vehicle on average, however, the company recently found that the losses were actually around $9,000 per car.
Uber plans to close out or sell its car-leasing businesses in the U.S. by the end of this year.
About 500 jobs out of Uber's workforce of 15,000 could be affected, the Journal said.
Copyright RTT News/dpa-AFX
© 2017 AFX News
