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This is b.s. Uber is playing hollywood with it's money. They are taking cars that are not particularly desirable, selling them to their own leasing company at
by Steeeve 9y ago
This is b.s. Uber is playing hollywood with it's money.
They are taking cars that are not particularly desirable, selling them to their own leasing company at full retail, collecting 4 times as much money per month than any same person would pay, earning money on every mile driven, and... I'm not sure about this one, but I _think_ they reduce the pay of the drivers who do the leases (I know Lyft does this).
Then they are "selling" the cars at a loss. But are they selling the cars at a loss to the wholesale market at large? i.e. putting them up for auction at Manheim/etc.? I doubt that is happening. More likely they are selling them to yet another subsidiary or affiliated company.
You don't lease a 15K car to someone at $800/month and lose money.
- RobPfeifer 9y agoI think you underestimate what a dumpster fire that group is
- KirinDave 9y agoYou'd think it would work, but the drivers aren't stupid. Reading the article suggests to me the loss point here is drivers realizing they can burn these cars.
- calpaterson 9y ago> You don't lease a 15K car to someone at $800/month and lose money. It seems easy to imagine how you can: the driver rents the $15k car for 6 months, paying $4.8k in total before they stop making payments and Uber repossesses the vehicle. Uber hope to make themselves whole by selling it for $10.2k...except...they can't sell it for $10.2k because cars depreciate fast and anyway this one has 30,000 more miles on the clock than it did at $15k. Only the cars initally cost $20k instead of $15k, Uber had to pay ~4% interest on the money they used to buy the car, the driver paid closer to $400 than $800, not all the cars are in fully working order and there are 40,000 cars.