Uber Technologies Inc. is winding down its US auto leasing business, which is losing 18 times more money per vehicle than previously thought, the Wall Street Journal reports, citing people familiar with the matter.
Xchange Leasing, which was established two years ago, had earlier thought it was losing a modest US$500 per vehicle on average, but later estimates put the losses at around US$9,000 per car, or at least half the sticker price of a typical leased vehicle, the newspaper said.
The ride-hailing service, which has been expanding into more than 70 countries, wants to reduce total losses from over US$3 billion in 2016 alone.
Investors are pressuring the company to rein in costs and pave the way for an initial public offering after its chief executive, Travis Kalanick, was ousted in June, the Journal said.
In lieu of a new CEO, the company is being run by a 14-member executive committee as it confronts several major issues, including a months-long investigation into its corporate culture, a lawsuit from Alphabet Inc. over self-driving trade secrets, and regulatory battles around the world.
Uber launched the US car-leasing program in 2015 under Kalanick, and had invested some US$600 million in the division, sources said.
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