Uber Carshare axed in Australia from next month
Global carshare experiment canned globally just two years after it snapped up Aussie start-up Car Next DoorUber has announced it will close down its Australian carsharing operation on September 12 just two and a half years after snapping up Car Next Door for $105 million.
The shutdown of Uber Carshare is part of a larger global decision – the North American operation a day earlier on September 11 – with Uber citing 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,” it said in a statement.
“We are shifting our focus from peer-to-peer car-sharing to partnering with scaled car rental companies through products like Uber Rent.”
Originally created to be the Airbnb for cars, Car Next Door allowed owners to rent out their vehicles to app users, allowing the carless or those travelling for work (or pleasure) to have access to affordable car rentals.
As well as cars, the service also included vans and utes, allowing users to rent a larger vehicle to move or transport heavy goods.
According to reports, both app users and vehicle providers were given little notice of the decision to end the service, with the company only recently contacting owners on August 8 to strengthen its theft and damage policy.
The company then announced on August 30 it would end its referral program with Uber, reassuring car owners a downturn in bookings over the winter would soon turnaround, specifically in September.
With the demise of Uber Carshare, in Australia it’s thought Turo and Australian start-up Drive Mate will soak up the balance both users and owners, while subscription services like GoGet (which owns its vehicle fleet) are expected to grow in popularity.
Despite culling Uber Carshare, the US rideshare operator says Uber Rent will continue to operate in Australia and New Zealand that has already provided with rental brands like Thrifty, Budget and Hertz.
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