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Uber Is Selling Its Money-Losing Car Lease Business (engadget.com)

Posted by BeauHD on from the cut-costs dept.

According to The Wall Street Journal, Uber is selling its Xchange Leasing unit to the car marketplace Fair.com. "It reportedly won't be a clean break," reports Engadget. "Uber will both take a stake in Fair and point would-be drivers to the site through its app. Fair, in return, will offer jobs to roughly 150 workers affected by the switch. Other companies in the running had included Avis Budget Group (yes, the car rental agency), activist investor Carl Icahn's self-titled Icahn Enterprises, Innovate Auto Finance and two capital investment firms."

3 of 22 comments (clear)

  1. As opposed to its money-losing ride hire business? by Jeff+DeMaagd · · Score: 4, Insightful

    I wonder if Uber is making money on anything because the numbers I saw say they lost nearly three billion dollars last year and I doubt this does much to improve the situation.

  2. Re:As opposed to its money-losing ride hire busine by PolygamousRanchKid+ · · Score: 4, Insightful

    I wonder if Uber is making money on anything

    Their mission is not to make money.

    Their mission is to keep drawing in investment money from venture capitalists.

    The investment money eventually gets converted into juicy salaries for the Über executives. If Über finally does go bust, they will still have made fortunes for themselves during the run.

    --
    Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
  3. Re:As opposed to its money-losing ride hire busine by stephanruby · · Score: 3, Insightful

    Their mission is to keep drawing in investment money from venture capitalists.

    Don't forget the pyramid.

    The venture capitalists themselves are hoping to sell off after an IPO.