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Uber considering sale of US car-leasing business, source says

The plan comes after Uber executives were informed that losses were US$9,000 (RM38,569) per car on average. — Reuters picThe plan comes after Uber executives were informed that losses were US$9,000 (RM38,569) per car on average. — Reuters picNEW YORK, Aug 9 — Ride-hailing company Uber is evaluating options for its capital-intensive US car-leasing business, including a sale of the unit, a source familiar with the matter said.

The Xchange Leasing business, which has about 40,000 vehicles and 14 showrooms in the United States, has attracted interest from some buyers who are considering buying it outright, according to the source.

Other options include a partnership or winding down the unit by reducing its presence in a number of cities that may lead to layoffs, the person said.

The Wall Street Journal reported earlier yesterday that as many as 500 jobs could be affected by the program, representing about 3 per cent of Uber's 15,000-employee staff.

The plan comes after Uber executives were informed that losses were US$9,000 (RM38,569) per car on average, steeply above the previous estimates of around US$500 per car, according to the report.

Earlier this month, the Journal reported that Uber's Singapore unit knowingly rented its drivers defective cars that were at risk of catching fire. — Reuters

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