Uber Wants Their Cars Back ASAP
Uber is closing down its Exchange Car-Leasing Program because it was losing money.
An Atlanta Uber Driver received this email below…
For a limited time, receive a $450 Electronic Visa Gift Card, if you return the vehicle and keys by Monday, 10/09 at 5:00 p.m. When you hand us the keys, you’ll get a $450 Electronic Visa Gift Card in exchange. We’ll also provide you with a free Uber ride back home, up to 50 miles from the drop-off location.
You must execute a Release Form in order to receive to receive the gift card. A copy of this document will be provided to you for review and execution upon on return of vehicle.
Reportedly, according to USA Today, Uber, the popular Ride-Share App, has losses of $708 million during the first quarter, down from $991 million in the previous quarter. Revenue for the first quarter reached $3.4 billion.
“We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach,” said a spokesman for Uber.
Uber launched their Exchange Program a few years ago, which allows a Uber Driver that is employed with their company to lease a car through them. Since then, nearly 20,000 drivers have participated in the program and collectively taken home over $200 million dollars driving with Uber, according to Uber.
Now what is going to happen to those 20, 000 Uber Drivers who relied on an Uber car for their transportation and jobs? Not only are the drivers affected, and may be standing in the employment line soon, but according to terry Tips, a long-term driver for uber, stated the location that runs the Exchange Car-Leasing Program will be shutdown as of 10/6. At least 500 Ubers workers will be laid off and unemployed.
Terry Tip from Atlanta, Uber long-term worker about the Uber Leasing Contract..
Some of the key benefits the Uber Exchange Ride-Share Program Provided for Uber Drivers who has the Uber Driver App:
- Job to 20,000 full-time and part-time workers
- Transportation for Uber Drivers with no transportation or drivers who didn’t want to put a lot of miles on their cars
- Leasing an Uber car to drivers, regardless of credit score (Poor or non-existent credit aren’t denied)
- Discounts from Auto Manufactures (Toyota, GM, Ford, Hyundai, Nissan, VW, and Chrysler)
- Financing Partnerships which made it easier for drivers with bad credit to qualify for a nice Uber car (Westlake Financial Services)
But what about the Cons of Uber’s Leasing Program:
- Uber Drivers pay a $250 upfront deposit and weekly payments to Uber over a three-year period
- Subprime Financing (Higher payments, ranging from $130-226, depending on what car the driver chooses)
- Higher or no Car Insurance being offered (Drivers are expected to get Commercial Car Insurance Policy, which is offered to drivers who use their cars to driver commercially vs personally.
Well, drivers can always go to Lyft, another Ride-Share App like Uber Driver App, which is Uber’s direct competitor. Lyft still offers their Express Drive Rental Program for Lyft Drivers, and it is actually a lot better than Uber’s Exchange Program. And I sure there will be many other apps like Uber, just like Krooz, another Rideshare App.
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