Uber's Easy Auto-Lease Program Raises Concerns

Posted on June 3, 2016

In its relentless pursuit for growth, Uber needs new drivers, and many of those drivers need cars. To help them get started, Uber has been offering short-term leases since July through a wholly owned Delaware-based subsidiary called Xchange Leasing, LLC. It partners with auto dealerships, advertises to drivers, manages risk, and even pays repo men to chase down cars whose drivers aren't making their payments.

But it has plenty of critics who accuse the company of looting the pockets of its drivers. Is Xchange really offering good deals? Does it ensnare drivers with commitments they can't meet?

Bloomberg News article and video here

Related Topics: driver behavior, finance, fleet financing, lease financing, TNCs, Uber

Comments ( 1 )
  • Chuck Cotton

     | about 4 years ago

    I have reviewed the lease agreement and must say, it is comical at best-more than one sided than any I seen. I doubt any lawyer could figure it out. Obviously, it is a sub/sub primer lease agreement and appears quite illegal in the lure of naive drivers who will jump at getting a car without any credit requirements or livery compliance,let alone a PRIMARY commercial public auto liability policy. Uber has full recourse because defaults will occur quickly, and then the entire operation soon will become a note used car lot. Kalanick has to be labeled as the smartest CEO of all time, particularly, after what he accomplished at Red Swoosh and SCOUR.($250B lawsuit). I'm sure his next venture for the drivers will be UBERREPO.

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