Sep 27, 2017

Uber will shut down its car leasing business

Illustration: Lazaro Gamio / Axios

Uber is shutting down its car leasing business, Xchange Leasing, after reportedly hoping to sell it, the company told the Wall Street Journal. The company will look for a "less capital intensive approach," it said.

Why it matters: Debuted two years ago, Xchange Leasing has been a controversial business unit. Earlier this summer, the WSJ reported that the company knowingly leased out defective cars to drivers in Singapore, while a Bloomberg report last year explored the financial risks for drivers who rent out the cars.

  • This is one of several moves by the company to shed units that aren't financially viable. Last year, it sold its Chinese operations to local rival Didi Chuxing after sinking $2 billion in the business, and a few months ago it did the same with its operations in Russia and neighboring countries. According to the WSJ, Uber recently discovered that it was losing 18 times more money per vehicle than previously thought.

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Situational awareness

Photo: Scott Olson/Getty Images

Catch up on today's biggest news:

  1. Warren supporters form super PAC
  2. We may be on "the brink" of coronavirus pandemic
  3. Pentagon policy chief resigns
  4. National polls show Bernie in control ahead of Nevada
  5. How a Chinese think tank rates all 50 U.S. governors
  6. Sanders and Bloomberg battle over heart health

Trump has declared war on sanctuary cities

Illustration: Sarah Grillo/Axios

Armed with subpoenas, lawsuits and immigration SWAT teams, the Trump administration has declared war on sanctuary cities.

The big picture: President Trump and his administration have used every available tool to try to crack down on local governments that refuse to hold immigrants in criminal custody, block immigration agents from working in county jails or deny federal authorities access to immigrants' records.

Peter Thiel's Founders Fund isn't really Peter Thiel's Founders Fund

Illustration: Photo Illustration: Eniola Odetunde/Axios. Photos: Charles Eshelman, Steve Jennings, and Chip Somodevilla/Getty Images

Founders Fund has raised $3 billion for a pair of new funds, so expect a slew of headlines about how "Peter Thiel's venture capital firm" is now flush with cash.

Behind the scenes: Thiel is essential to Founders Fund, but he's not autocratic. Instead, Axios has learned that he's one of three people with veto power over most FF investments, and is unable to do a deal without approval of the other two.