Australian businesses and individuals will no longer be able to make money by renting out their fleet of cars or vans directly through the Uber app. The company has decided to close down its service due to operational challenges.
The rising costs, theft, and vehicle repair expenses also played a significant role in terminating the service.
Uber says it’s shifting their focus from “peer-to-peer car sharing to partnering with scaled car rental companies through products like Uber Rent.”
It’s reported that app users and vehicle providers were informed late about the decision.
How Uber Carshare started
Marketed as an Airbnb for cars, the Daily Mail reports it allowed users to rent out vehicles for as little as $40 a day.
Uber Carshare was launched in 2022 and will officially close on September 12, 2024. This follows similar closures in the US and Canada.
It all started when Uber acquired the Australian start-up Car Next Door for $105 million two years ago. It adopted the business model and started off. However, it started experiencing difficulties sustaining the platform due to the current economic climate.
Key lessons for business owners
Flexibility in a business strategy can help a business navigate rising costs and operational challenges. Uber decided to end its business and move on to another area where it’s likely to perform better.
Even if a business starts off strong and shows great potential, certain business models may face unforeseen hurdles that may impact its long-term performance.
Any business should keep a close eye on economic trends. Rising costs, especially in a sector influenced by things like insurance and maintenance, can significantly impact the success of the business and the service.
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
