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00:00STREET EXTENDING A BILLION DOLLARS IN CREDIT TO UBER LEASING BUSINESS. AND UBER SUBSIDIARY CALLED EXCHANGE WILL USE THE FUNDS TO LEASE CARS TO DRIVERS REJECTED BY OTHER LENDERS. THE GOAL IS TO PUT 100,000 DRIVERS ON THE ROAD, BUT IS IT SAFE? WE HAVE A BIG IN-DEPTH PIECE -- MY COHOST, DAVID KIRKPATRICK IS STILL WITH US. GUEST: THEY HAVE BEEN BUILDING OUT THIS PROGRAM IN THE UNITED STATES AND THE IN-HOUSE PROGRAM HAS BEEN INCORPORATED. THEY HAVE BEEN TRYING DIFFERENT STRATEGIES BUT THIS IS CLEARLY A DIFFERENT SIGN. EMILY: YOU INTERVIEWED HALF A DOZEN DRIVERS WHO PARTICIPATED IN THIS PROGRAM. MANY OF WHOM WERE NOT HAPPY WITH THE RESULTS OF THE PROGRAM. UBER SAYS THEY ARE NOT PROFITING FROM THIS PROGRAM IN ANY WAY. TALK TO US ABOUT WHAT DRIVERS TOLD YOU. GUEST: THERE ARE TWO CAMPS. A COUPLE OF DRIVERS WE TALKED TO, THEY HAVE TERRIBLE CREDIT -- ONE WOMAN I SPOKE WITH HAD MEDICAL PROBLEMS THAT CAUSED HER TO GET INTO DEBT. ANOTHER SAID IT WAS HARD FOR HER TO GET INTO A CAR. UBER AND EXCHANGE WAS A PASS -- A HALF TO MAKE MORE MONEY. IT WAS AN ALTERNATIVE, BUT SHE WAS PAYING HUGE SUMS TO KEEP THE CAR GOING. EMILY: $12,000 MORE THAN THE TOTAL OF THE CAR. GUEST: THEY ARE VERY EXPENSIVE. IF YOU ARE POOR IN THIS COUNTRY AND YOU WANT TO GET A LEASE, IT IS VERY EXPENSIVE. EMILY: YOU TALK TO ANOTHER DRIVER WHO GOT INTO AN ACCIDENT AND WOULD NOT HAVE BEEN ABLE TO GET A LEASE ANY OTHER WAY. ULTIMATELY, THEY/RATES AND HE COULD NOT KEEP UP THE PAYMENTS, SO HE JUST LEFT THE CAR OUTSIDE WITH A NOTE TO UBER SAYING THANKS, NO THANKS. AND SOMEONE CAME TO PICK IT UP A FEW MONTHS LATER. GUEST: UBER HAS GOTTEN ITSELF INTO THE REPO BUSINESS. THERE'S DEFINITELY SOME SERIOUS TURNOVER. THEY/RATES IN JANUARY AND HE FELT LIKE HE COULDN'T MAKE THE MONEY, SO HE QUIT. HIS CAR WAS PARKED OUT THERE WITH A NOTE TACKED ON IT. AND THEN SOMEDAY IN THE BILL OF THE NIGHT, SOMEONE CAME AND TOOK IT AWAY. EMILY: WE GOT A STATEMENT FROM THE PERSON RUNNING THIS, THE HEAD OF THE EXCHANGE LEASING PROGRAM. THEY ISSUED A STATEMENT SAYING THE POPULARITY OF UBER AUTO LEASE IS INCREDIBLE AND IT PROVIDES ACCESS TO HIKE WALLY CARS WITH NO RESTRICTIONS ON MILES AND THE ABILITY TO RAKE THE LEASE EARLY WITH MINIMAL FEES. WHAT IS YOUR REACTION TO THE DETAILS THAT HAVE BEEN UNCOVERED WITH THIS PROGRAM AS A PASSENGER? GUEST: I THINK HE DID A GREAT JOB WITH THE STORY. IT IS BREAKING GREAT NEW GROUND. THE COMPANY PLAYS HARDBALL AT EVERY TURN. WE LOVE GETTING LOW PRICES ALL OVER THE WORLD BUT IT RAISES THE PROSPECT THAT THE DRIVER IS GOING TO BE SOMEONE WHO DOESN'T EVEN HAVE GOOD ENOUGH CREDIT TO BUY THEIR OWN CARS OR LEASE IT THROUGH CONVENTIONAL MEANS. IT SOUNDS LIKE IT ALLOWS ALMOST ANYONE TO WALK IN OFF THE STREET AND THINK THEY ARE GOING TO GET A JOB BECAUSE THEY WILL GET A CAR AND THE REQUIREMENT TO USE IT TO PAY BACK THE LEASE IN HOPES OF MAKING A LITTLE MORE MONEY. BUT I HAVE HAD MIXED EXPERIENCES WITH UBER DRIVERS AS I'M SURE MANY HAVE AND IT DOES NOT REASSURE ME ABOUT MY CUSTOMER EXPERIENCE. EMILY: UBER SAYS THEY NEED TO GET MORE DRIVERS ON THE ROAD AND WHO'S TO SAY ANY OF THESE PEOPLE SHOULDN'T THE DRIVING, BUT THAT'S A FAIR POINT. AS SOME OF YOU HAS HAD MIXED EXPERIENCES WITH UBER DRIVERS, YOU ARE GETTING INTO A CAR WITH THESE PEOPLE. GUEST: THERE'S A HUGE APPETITE TO GROW THE NUMBER OF DRIVERS ANYWAY THEY CAN. WE DID NOT GET INTO IT IN THIS STORY BUT PEOPLE WITH POOR CREDIT RATINGS MAY BE MORE LIKELY TO BE BAD DRIVERS AND SOME OF THAT IS BECAUSE OF HOW YOU GET A BAD CREDIT RATING. THERE ARE CERTAINLY QUESTIONS TO ASK THERE IF UBER IS ENCOURAGING PEOPLE WITH POOR CREDIT TO GET ON THE ROAD. I DID NOT GET INTO IT WITH THIS STORY BUT THAT IS PART OF IT. EMILY: DO WE KNOW HOW BIG THE PROGRAM IS AT THIS POINT? GUEST: THEY HAVE DISCOUNTS AND OTHER FINANCE PROGRAMS, IT IS THROUGH THEIR CUMULATIVE FINANCE EFFORT THAT I FOUND OUT ABOUT THE ILION DOLLAR DEBT THE SILTY LATE IN THE GAME, SO I'M CURIOUS TO SEE HOW THAT CHANGES THEIR EXPECTATIONS. EMILY: HOW SUBPRIME IS THIS? GUEST: NO PRIME IS ONE PHRASE YOU MIGHT USE. THEY HAVE SUBPRIME DRIVERS AND THESE ARE TECHNICAL RATING BANDS AND FOR UBER, IT'S NOT A MATTER OF WHETHER YOU DEFAULT ON A CAR BEFORE BUT I KNOW THEY ARE GOING TO PULL MONEY RIGHT OUT OF YOUR INCOME. IF YOU ARE DRIVING FOR OVER, THEY ARE GOING TO TAKE THE MONEY RIGHT OUT OF YOUR PAYCHECK. EMILY: WHAT DO YOU THINK ABOUT THE IDEA OF MORE WALL STREET INSTITUTIONS -- DAVID: I WANT TO ASK, HE'S SPEAKING TO DRIVERS RECOMMENDED TO HIM BY UBER -- DID YOU SAY I'VE GOT A JOB AND I'M PAYING OFF MY LEASE AND MAKING TONS OF MONEY? GUEST: ONE OF THE LEAD DRIVERS WE TALKED TO WAS FROM UBER. CERTAINLY THE DRIVER UBER RECOMMENDED WAS STILL WORKING FOR UBER. SHE WAS HAPPY WITH THE PROGRAM AND IF YOU LOOK AT THE NUMBER, I DON'T THINK YOU WOULD WALK AWAY THINKING SHE'S MADE A LOT OF MONEY. SHE PICKED THE JOB OVER PAPA

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