Uber has announced it will close its car-sharing service in Australia following a series of “operational issues” and cost increases.
Uber Carshare allows users to rent their car, truck, or SUV by the hour, day, week, or month directly through the Uber app.
Vehicles could be rented for as little as $40 a day and it was marketed as an Airbnb for cars when it first launched in 2022.
Uber Carshare will officially cease operations on September 12, one day after the service is also suspended in North America.
In a statement, Uber blamed the rising cost of owning a car as well as a number of external factors affecting its business model.
“Due to rising costs and operational challenges associated with vehicle insurance, theft and repairs, we are making changes to our business model,” Uber said.
‘We are shifting our focus from peer-to-peer car sharing to partnering with large-scale car rental companies through products like Uber Rent.’
The decision to cease operations comes two years after Uber bought Australian startup Car Next Door for $105 million and replicated its business model.
Uber Carshare will officially cease operations on September 12, a day after the service is also suspended in North America (file image)
Uber Carshare allows users to rent out their car, van or truck for hours, days, weeks or months.
Uber Carshare is to cease operations in Australia due to rising costs and a number of “operational challenges” (file image)
Uber Rent, which offers users access to rental brands such as Thrifty, Budget and Hertz, will continue to operate in Australia and New Zealand.
Car-sharing rivals Turo and Drive Mate are expected to take the lion’s share of Uber Carshare customers looking for a car-sharing service.
