Wednesday, May 27, 2015

Uber, playing with fire pushing usurious sub prime car loans to entrap drivers

The ongoing  Uber Ponzi scheme racket is going to explode in the near future as Uber driver paupers, saddled with 23% interest automobile loans ultimately walk away from or get forcibly repossessed of  cars they can't afford to maintain . We're in a honeymoon phase with Uber right now - relatively new drivers and relatively new cars, bought as Uber taxis by people who can only make the payments as long as Uber deducts the money from the drivers pay checks. According to the Internal Revenue Service cars depreciate (deteriorate) at the rate of 57.5¢ per mile.  Sooner or later transmissions, brakes, fuel pumps and radiators get replaced,. Drivers who can't afford and are too overwhelmed by driving to do normal maintenance of their cars face breakdowns and accident risks. The loans are for five year periods. A pauper driver who does an average of 900 miles per week needs to budget $517 for maintenance, repairs and eventual replacement of the car. Typically a cash strapped driver won't do this, which won't show up as a problem (with luck) on a new car. As the car ages the issue forces itself onto the agenda. Meanwhile these junk loans  that are arranged with GM and Santander Bank. Both of these entities are under Justice Department investigation for selling junk level loans as investment grade to pension funds and insurance companies. Sounds familiar, doesn't it?

Uber uses their leverage with these predatory lenders to pressure the drivers to work more hours and not to use other apps.

The blog that could take down Uber as we know it.


  1. It also would put Uber into direct competition with the public transport systems in many countries, again leveraging that $1.2bn war chest to initially under-price and building on the political climates in some countries that see private transportation as the best way to go.rideshare in the usa

  2. UBER is a bunch of bottom-feeding crooks ripping off drivers ad customers as fast as they can. Pedestrians are run over and killed,women are raped, UBER drivers are not reimbursed for medical or repair bills in the event of a wreck. UBER insurance is worthless.

    Jack W,
    Bala kumar