Half of all Uber drivers last about six months before they quit.
Since they need more drivers, they have come up with a scheme to get drivers with bad credit a loan for a new car through Xchange Leasing. The Houston Chronicle explains:
If you’ve got a license and are willing to drive, Uber will hook you up with a new car, no matter how bad your credit. To make sure you make your payments, though, Uber will automatically deduct them weekly from what you earn as a driver. If you don’t drive enough, or you fail to make your lease payment, Xchange has folks to take the car back.
Goldman Sachs just put up a million dollars to expand the program.
Here’s what this looks like to me:
#1 You can’t get approved by another lender so you know that the terms will be bad. Can we say “sub-prime” lending?
#2 Uber, or XChange, sets the rates for the loan and then Uber turns around and sets the rates that drivers drive for. You’re telling the drivers what they’ll pay to lease the car AND controlling how much money they earn.
#3 The lease payment comes out of the Uber driver’s pay that week, before the driver gets the money.
#4 If the driver doesn’t drive enough to make the payments, then the car is repossessed.
This does not sound like a good deal for Uber drivers that don’t already have a car loan.
One thought on “Uber Takes Advantage of Drivers”
Here’s an update there’s two parts to this leasing program the second part to the leasing program is when Uber up with cars bad drivers return Uber is stuck with that car and what they do in their second part to their Leasing Force drivers to accept whatever car becomes available through their return program but the issue is they still pay the same amount that they would have under their lease program for a new vehicle. Otherwise we would be getting stuck with all the vehicles that it owns so they really know how to take advantage of drivers it’s a bait-and-switch program to get more driver it should be illegal investigated but it obviously won’t because Uber has too much money and influence. Welcome to social justice sounds pretty liberal to me.