Uber considering selling off its US car-leasing business

Tim Maytom

Uber is reportedly exploring a variety of options for the future of its US car-leasing business including selling off the unit entirely. The Xchange Leasing business consists of around 40,000 vehicles and 14 showrooms across the US.

The plan for the unit comes following revised estimates of its financial viability, with executives recently informed that losses averaged around $9,000 (£6,900) per car, a huge jump up from previous estimates of roughly $500 per car.

After a particularly tumultuous year which has seen the exit of founder and former CEO Travis Kalanick, the company is seeking to alleviate shareholder concerns by cutting costs and driving efficiencies.

According to the Wall Street Journal, the business has attracted interest from multiple parties who are considering buying the unit outright. Other options Uber is exploring include entering into a partnership, perhaps with another car-leasing firm, or winding down the unit slowly, a move which could result in layoffs for the roughly 500 staff working in the business.

The unit’s Singapore equivalent has also been in the spotlight recently after it was reported that it knowingly rented defective cars that were at risk of catching fire to its drivers.

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