Rideshare pioneer Uber is closing its Australian-bred car sharing service, just two and a half years after acquiring the business for $105 million.
UPDATE, 1:10pm August 22: Uber Carshare has now confirmed to car owners using its service that it will close on September 12 in Australia, and September 11 in the US and Canada.
Our original story, published at 9:30am, has been amended to reflect Uber Carshare’s confirmation of its demise.
In an email sent to owners using the platform, Uber Carshare said it would close due to external factors affecting its business model.
“Due to increasing costs and operational challenges associated with insurance, thefts, and vehicle repairs, we’re making changes to our business model.
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“We are shifting our focus from peer-to-peer car-sharing to partnering with scaled car rental companies through products like Uber Rent.”
Uber Carshare was born in December 2022 after the US ridesharing pioneer purchased Australian start-up Car Next Door in January of the same year for $105 million, initially only focusing on operations Down Under though plans were made to take the product to North America.
Its business model was shaped as being the Airbnb for cars, allowing owners to rent out their vehicles to users of the app – in theory resulting in less vehicles being owned outright and only used on demand.
“Bringing our car-sharing service together with Uber’s range of mobility options means that Aussies can now access a better way to move – whether they’re catching a rideshare for a night out or borrowing a local van to move house,” said Uber ANZ General Manager Dom Taylor in December 2022.
An email to car owners using Uber Carshare, dated August 8, spoke of the company strengthening its theft and damage policy, ending its referral program on August 30, and reassuring owners that a downturn in bookings through winter was soon to turn around.
“The winter months have always been a slow season for the car rental market,” the email to owners reads.
“The decline in earnings you may have experienced over the winter months is primarily due to the broader rental market seasonality and based on historical trends, trip volume begins picking up again from September onwards.”
Car sharing rivals to Uber’s platform in Australia include US-based Turo and locally developed Drive Mate, while there are also a number of subscription services such as GoGet which own the vehicles they distribute.
The closure of Uber Carshare won’t affect Uber Rent, the company’s new venture which has seen it partner with traditional rental brands Thrifty, Budget and Hertz in Australia and New Zealand.
Uber Rent allows users to hire a car through the established businesses, which includes Uber Carshare owners if their own vehicle isn’t available.
Earlier this year, Uber Carshare enlisted Formula One star – and adopted Australian – Valtteri Bottas to promote its product, additionally allowing the public to rent the Finn’s “Aussie second car”, a Holden Commodore ute.
MORE: Uber rebrands Car Next Door, prepares to take Aussie business global
MORE: Adopted Australian F1 star Valtteri Bottas shows off “his” Holden Commodore ute
