Uber has taken some heat in recent months, what with sexual harassment charges leveled at the company’s top brass leading to mass firings and the ouster of Uber founder, Travis Kalanick, as CEO. Since then, the company has bounced back with a renewed commitment to autonomous vehicles and public support of America’s DREAMers serving as just two examples of that effort. This latest news, however, is even more indicative of that effort to do no harm: Uber is selling its subprime lending arm.
Did you forget that Uber had been operating a subprime lending division in order to get people who couldn’t afford cars to buy cars so they could drive for Uber in some kind of weirdly evil feudalistic synergy? I know I had!
For its part, the new Uber (Nuber?) is expected to sell subprime auto-leasing business to startup car marketplace, Fair.com, early in 2018. Uber had been seeking a buyer for Xchange Leasing, as its in-house financing arm was known, since this summer’s management chaos kicked off. Rumor has it that Uber had been losing nearly $9,000 per car leased- which is believed to 1800% more than initially projected.
When asked about that 1800% miss, I like to think that the response from the accountants over at Uber competitor, Lyft, would look something like this: