Uber employees fear layoffs in car leasing unit

Uber driver car logo
Uber’s car leasing
business in the US has hit a bumpy road, and insiders worry that
layoffs are coming.


Uber employees are nervous about an expected round of
layoffs, according to a source familiar with the company.

This after news broke that the company is
considering shuttering its US car leasing business.

The two-year old leasing program, founded under then CEO Travis
Kalanick, is losing far more money than planned, reports the

Wall Street Journal’s Greg Bensinger.

Uber currently has about 40,000 vehicles in the program, which it
leases to drivers. The company had expected to lose about $500
per car but is losing about $9,000 per car, sources told

The problem? Being in the car leasing business was harder than
Uber imagined. All told, about 500 people work for the unit.
Uber is apparently looking for a buyer for the unit, or even a
partner for it, but short of that, the company will be make
big changes,
Quart’s Alison Griswold reports
. Some employees will
find new roles within the company but layoffs are not out of the
question, the source told Griswold.

Kalanick was forced to step down as Uber CEO in June in the
wake of a long series of scandals at the company. Uber is
currently being led by a committee of 14 executives. Uber
lost $2.8 billion in 2016 and this team is said to be trying
to stem those losses.

Uber did not immediately respond to a request for

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