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Uber is shutting down its Xchange vehicle leasing business

Uber has showed to TechCrunch that it’s going to close down its Xchange Leasing subsidiary, which supplied vehicle rentals to drivers at the carrier that couldn’t another way procure cars via conventional financing choices.

The shutdown wasn’t sudden – Uber stated in August that it used to be operating on what to do with the business, after studies emerged that it used to be taking into consideration a shutdown. Uber on the time determined along with its board that it used to be leading to “sustainably high losses,” consistent with a Wall Street Journal document.

Today’s shutdown used to be reported first through the Wall Street Journal, and showed to TechCrunch by the use of a spokesperson, who supplied the next remark from the corporate:

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

The Xchange Leasing shutdown will impact round 500 jobs, consistent with the Journal, and signifies that the corporate in the long run wasn’t in a position to discover a higher resolution referring to what it must do with its leasing business.

Uber has additionally partnered with different firms on making vehicles to be had to drivers on shorter time period, no dedication bases, together with suppliers like GM’s Maven, so which may be one thing it focuses extra on in long term to make cars to be had too drivers with out their very own vehicles.

Featured Image: Justin Sullivan/Getty Images

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