Uber to close down popular service in Australia amid rising costs

Uber has announced it will close down its Australian car-share service after a series of ‘operational challenges’ and rising costs.

Uber Carshare allows users to rent out their car, van or ute for 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 AirBnb for cars when it was first launched in 2022.

Uber Carshare will officially cease operations on September 12, the day after the service will also be discontinued in North America.

In a statement, Uber blamed the increasing cost of car ownership as well as a series of 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,’ Uber said.

‘We are shifting our focus from peer-to-peer carsharing to partnering with scaled car rental companies through products like Uber Rent.’

The decision to cease operations comes two years after Uber bought the Aussie start-up Car Next Door for $105million and replicated its business model.

Uber Carshare allows users to rent out their car, van or ute for the hour, day, week or month

Uber Carshare will end  Australia amid rising costs and a series of ‘operational challenges’ (stock image)

Uber Rent, which gives users access to rental brands like Thrifty, Budget and Hertz, will continue operations in Australia and New Zealand. 

Car-sharing rivals like Turo and Drive Mate are expected to welcome the brunt of Uber Carshare customers looking for a car-sharing service.