Uber says it’s shutting down its car-leasing program after two years of operation. “We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach,” an Uber spokesman said via email. The news was first reported by the Wall Street Journal. There are 500 employees in this segment of the business.
The dissolution of Xchange comes after Uber managers informed top brass that the division was losing $9,000 per car, according to a report last month from the Wall Street Journal. The Xchange program was only supposed to be garnering losses of $500 per car under original estimates. Uber had accrued 40,000 car titles through the program, the report said.