Ride sharing giant Uber Technologies Inc. intends to close its U.S. subprime car-leasing unit to offset rising losses, the Wall Street Journal reports.
The shutdown of the division, the Xchange Leasing program, comes just two years after its inception. Uber intends to close or sell a majority of the business by the end of the year. As many as 500 jobs could be affected, representing roughly 3% of Uber's 15,000-employee staff.
The move comes as Uber sees average losses per vehicle at about 18 times what they had thought. The Xchange Leasing division had been projecting losses of around $500 per auto on average, but managers informed Uber executives that the losses were about $9,000 per car, roughly half that of a typical sticker price on a leased vehicle.
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