Sunday, September 06, 2015

Media Pundit view of Uber XChange Leasing Program

We all know that media pundits are called upon to give their opinions on ridesharing services. This sensitive topic on ridesharing is becoming so popular that only trust-based questions block additional users. New drivers are recruited and vetted to increase ridership, whereas promotional codes circulate in ad campaigns to recruit new clients/riders/passengers. A recent article concerning Uber's XChange Leasing Program challenges whether drivers are hooked to stick with Uber for 3 years.

Harry Campbell, a ridesharing driver and operator of, shares in a US News article that drivers are mostly temporary Uber drivers and won't be interested driving with Uber for the remainder of a 3-year lease. Essentially, Harry implied that Uber drivers must commit to 36-months and this must be on the Uber platform.

We disagree that the Uber XChange Leasing Program hooks Uber drivers to keep driving with Uber. Uber drivers can choose to drive with Uber. Giving at least 1 ride per month is not too much to ask of Uber drivers. Nevertheless, these Uber drivers can submit a credit card or set up direct deposit to make a lease payment in any given week.

Don't plan to drive in a particular week and/or a few weeks? Have this weekly payment deducted from another account. It is not imperative to get on the road with Uber. The primary goal is to help drivers escape costly repairs and maintenance issues connected to used personal vehicles.

The best part of this Uber XChange Leasing Program is unlimited mileage. Taxi services don't give taxi drivers access to the same taxis/cabs. They pay high usage fees per shift to remain operable. However, Uber drivers are given access to a new and/or pre-owned vehicle. They can take home these vehicles and drive whenever they prefer without worrying about costly fees. Imagine a leased vehicle program that allows a temporary owner to drive unlimited miles. No leasing program like this XChange Leasing Program exists. Uber is the only exception.

Auto insurance protecting these XChange Leasing Program vehicles is far better than using personal vehicles with basic full coverage car insurance. Before an Uber driver can leave the car lot with their new and/or leased vehicle, they are expected to get ridesharing auto insurance under Farmer's Insurance and/or MetroMile. This ridesharing coverage is exclusive for ridesharing drivers, mainly to protect clients, XChange Leasing Program vehicles and confront any potential accidents that occur while ridesharing. We don't know the full extent of this ridesharing insurance coverage. Please contact MetroMile and/or Farmer's Insurance to request coverage options and protection.

Campbell mentioned that he recently applied for this new XChange Leasing program. With this new lease program, Campbell changed his stance on the previous lease program that he believed may have hooked drivers to remain as Uber drivers. There is no huge disadvantage to leasing vehicles under this XChange Program. No contract lockdowns will trap Uber drivers into continuing to perform ridesharing services. No mileage penalties to increase the cost of this lease. Just drive and pay.

This XChange Leasing Program is unavailable in most Uber cities. The pilot program is only in a few major Uber cities such as San Francisco, Los Angeles, and San Diego. Under this pilot program, we see that more Uber drivers will decide to lease vehicles rather than get grounded after costly repairs. Missing weeks, even a month at a time, will cost Uber drivers major earnings. Eventually, driving personal vehicles will ultimately result in bad credit, car repossessions, apartment evictions and/or home foreclosures. Too many resources are invested into driving, so missing time driving can lead to adverse results.

We know of a particular Uber driver who experienced many car-related issues that grounded him many times. It was excessive driving that put major miles on a luxury vehicle, to the point in which repairs consumed all of his earnings and he missed at least 3 months worth of driving in a year. Even so, this driver remained active on the Uber platform because he completed the recommended trips per month to avoid deactivation. If a driver is grounded on April 2, they may have already completed at least once trip on April 1-2 to survive up until the end of May. It really depends on the date of this car issue. Take the initiative to avoid unexpected events.

Uber and ridesharing drivers are permitted to only drive approved vehicles. We believe it is best to have at least 2 vehicles approved on any Uber driver account. If one vehicle is unavailable for some unexpected reason, then they can use their backup vehicle. Think of this scenario functioning like a backup quarterback filling-in for a starter. Have a starter and a backup vehicle ready to rideshare.

In the meantime, check out Uber XChange Leasing Program to remain active on the road. Drive your new and/or pre-owned wheels to save the life of your personal vehicles. Reserve personal vehicles to go on road trips. Use leased wheels to rideshare and/or drive whenever you want.

Flexible payment options are available to cover your XChange Leasing Program vehicle. Keep this vehicle up to 3-years. If you prefer, you can buy this vehicle outright in 3 years through financing the remainder of the vehicle and/or paying the cash price.

Uber drivers who have bad credit are likely to gain from this pilot program. In the long run, Uber drivers will pay more than the cost of the lease. However, they have the option to return this vehicle once the lease ends. If in fact this vehicle is driven 200,000-300,000 in 3 years, they can elect to not buy this vehicle outright. It really depends on the overall mileage and car shape.

Nobody is losing in the process.

Uber will increase the supply of active drivers, with reliable vehicles, on the road. Drivers won't be sitting at home with broken-down rides. This leasing program is a win-win for both Uber and their drivers. Even so, drivers may be able to use their vehicles to drive on other ride platforms. We always recommend Uber since their clientele care more about drivers than Lyft passengers do Lyft drivers.

Stay tuned for future news regarding the XChange Leasing Program.

Farmer's Insurance (insurance company affiliated with Farmer's) and MetroMile are offering ridesharing insurance for XChange Leasing Program vehicles.

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Source: US News