Uber’s subprime leases put drivers on road, but leave some shackled

From the article..."As the video promoting the arrangement puts it: 'The best part: Payments are automatically deducted from your Uber earnings.' "

The difference between Uber and other subprime lenders, like mortgage companies, is that the recipients can actively become lower credit risks. They can just drive the car. At the rates Uber pays, probably around a full day a month.

So not only is this expanding credit options, it's expanding labor options.

I might give Uber a hard time about some things but I'm failing to see the evil in this. Yes, the leases might seem predatory, but if the target is high risk buyers and the apr is not off by an order of magnitude, seems like they are just enabling their work force.

I could think of a lot worse things than a company giving someone a job and then offering them expensive tools to do it.

Uber may not be making a profit directly on the leases, but it's clearly a way to get more drivers at a lower effective wage.

    In one week in May, Schmitt earned $604 for 28 hours of
    work, she said — a slightly better-than-average week.
    Uber took $160 for the car directly out of her paycheck,
    leaving her with $444.

That works out to about $15/hour after the lease payment, even less if it's not including fuel costs.

"“I’d say the cost is greater than the benefit for your average driver,” - Isn't that the point of this scheme, that they target non-average drivers, ie those with low credit scores that would be unable to drive otherwise.

With regards to the figures at the end of the article. If Uber pays for insurance and repairs, it seems not a too prohibitive deal. If not the interest rates are well above 20%. Seems pretty sweet (for Uber).

But then again, a market rate of 20% for those without credit score isn't much worse that a credit card rate. And the LA-example comes through well above minimum wage.