Uber, which under new CEO Dara Khosrowshahi is trying to pare back its losses, is shuttering its car-leasing program after realizing it was losing 18 times the amount of money per car than it expected to, Recode has confirmed.
The ride-hail company previously expected to lose $500 per car that it leased to drivers who didn’t have good or any credit, as the Wall Street Journal first reported. But managers recently informed executives and the board that the program, called Xchange leasing, was costing Uber around $9,000 per car.
“We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach,” an Uber spokesperson told Recode.
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