Uber Is Selling Part of Its Business That Was Losing $9,000 a Car
Tue Dec 26 2017
Rachel Long (462 articles)

Uber Is Selling Part of Its Business That Was Losing $9,000 a Car

Ride-hailing firm Uber Technologies has agreed to sell its U.S. auto-leasing business Xchange Leasing to startup car marketplace Fair.com, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The net book value of Xchange Leasing’s more than 30,000 vehicles was about $ 400 million, WSJ reported, citing a company document that was compiled for prospective buyers.

Read: Look Out Uber—China’s Didi Just Raised $ 4 Billion to Go Global in the Ride-Hailing Battle

Uber said in September it was shutting down its U.S. auto-leasing business and moving toward a less capital-intensive approach.

The Xchange Leasing business, which has about 40,000 vehicles and 14 showrooms in the United States, had attracted interest from buyers who were considering buying it outright, according to a Reuters report in August.

Read: Uber Names Former Orbitz CEO Barney Harford as Chief Operating Officer

Uber and Fair.com did not immediately respond to requests for comment outside regular business hours.

Rachel Long

Rachel Long

Rachel Long is our Desk Correspondent covering Stock Markets across the globe. She is based in New York