Uber has announced it is closing its Australian car-sharing service due to a series of “operational challenges” and rising costs.
Uber Carshare allows users to rent out their car, van, or pickup truck directly through the Uber app for an hour, day, week, or month.
Vehicles could be rented for as little as $40 a day and when it launched in 2022, it was marketed as AirBnb for cars.
Uber Carshare will officially shut down on September 12, the day after the service also shuts down in North America.
Uber said in a statement that the rising cost of car ownership and a range of external factors are affecting its business model.
“Due to rising costs and operational challenges related to insurance, theft, and vehicle 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 start-up Car Next Door for $105 million and copied its business model.
Uber Carshare will officially cease operations on September 12, the day after the service is also scheduled to shut down in North America (stock image)
Uber Carshare allows users to rent out their car, van or pickup truck for an hour, day, week or month
Uber Carshare to disappear in Australia due to rising costs and a range of ‘operational challenges’ (stock image)
Uber Rent, which gives users access to rental brands including Thrifty, Budget and Hertz, will continue to operate in Australia and New Zealand.
Car-sharing rivals Turo and Drive Mate are expected to welcome the largest group of Uber Carshare customers looking for a car-sharing service.