Uber Australia will close down its carshare business after acquiring the Car Next Door start-up for $105 million in 2022.
The Australian Financial Review reports that Uber Carshare boss Will Davies did not respond to its request for comment, and an Uber spokesperson declined to comment.
According to the AFR, Uber is not the first company to struggle with the car share business model in the Australian market.
It reports that ASX-listed car subscription company Carly previously operated a service called DriveMyCar, but it ceased two years ago to concentrate on subscriptions.
On LinkedIn, Carly chief executive Chris Noone says it was disappointing to see that Uber Carshare has pulled the plug on the former Car Next Door business.
“Peer-to-peer is challenging, and it is even more challenging for a global business to get right. There are two customers for every transaction, and there is a lot of scope for disagreement about damage and vehicle condition,” Noone says.
“Realising this is why we pivoted from DriveMyCar to Carly Car Subscription. We can now offer better vehicles, lower prices and better customer service. Haven’t looked back,” he says.
Join the conversation