Uber (and Lyft) As Extraction From The Poor

by Karl Denninger

The rip-offs just never end, and they always seem to target those who have the least going on between the ears — or who are most-desperate.

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.

Uh huh.

Of course “Xchange Leasing” is, well, deep subprime. The terms are terrible and what’s worse is that their payments are direct-deducted from your Uber driving remittance. That sounds good but is in fact very bad, as it winds up essentially enslaving you, especially when you look at the payments on the so-called “lease” .vs. the actual value of the vehicle.

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