Uber’s Carshare rival booms as stranded Aussies seek options

Uber’s sudden closure of one of its car platforms has left Aussies scrambling for alternatives.

Australians have been left scrambling to find alternative car-sharing services after Uber abruptly announced it would shut down its Uber Carshare platform on September 12.

The service, launched in 2022 after Uber reportedly acquired local start-up Car Next Door for $105 million, allowed users to rent vehicles through the app.

The unexpected exit has sparked a massive surge in demand for rival car-sharing services, particularly Sydney and Melbourne-based Drive Mate, which saw a staggering 1323 per cent increase in bookings since Uber’s announcement.

Drive Mate, a peer-to-peer car-sharing platform, has rapidly expanded its fleet to meet this unprecedented demand.

In Sydney alone, the company added 350 vehicles in just one month, bringing its total fleet to 500 vehicles.

Car Next Door grew in popularity with people looking for an additional income stream. Picture: Jake Nowakowski

Drive Mate co-founders Gaurav Singhal and Dirk-Jan ter Horst pointed to this data as evidence that the peer-to-peer Carshare model is far from dead, despite Uber’s struggles.

“In the past we’ve seen big upticks over the October long weekend, and already we’re seeing cars booked at greater rates than any other period this year,” he said.

Drive Mate’s growth isn’t limited to Sydney, the company has also seen a rise in demand in Brisbane, Gold Coast and Melbourne, with hundreds of vehicles being added to their fleets.

Uber Carshare marketed themselves as the “airbnb for cars”, offering a variety of vehicles for as little as $40 per day.

Drive Mate founders Gaurav Singhal and Dirk-Jan ter Horst. Picture: Supplied

Despite initial success, an Uber Spokesperson explained operational costs and other challenges as the reason for the closure.

“Over the last couple of years, we have faced challenges on both the growth and profitability side of the business, with significant increase in costs associated with insurance, vehicle theft and car repairs,” a spokesman said.

Uber has shifted its focus to traditional car rental partnerships through Uber Rent, which provides users access to rental companies like Thrifty, Budget and Hertz.

While peer-to-peer car-sharing will no longer be available under Uber’s umbrella, the company has signed a partnership with U.S. based company Turo, the world’s largest peer-to-peer car-sharing platform.

Beginning in 2025, Uber users will be able to rent vehicles through Turo via the Uber app.

Uber’s global head of consumer vehicles Niraj Patel said the partnership is critical to the future of transportation.

“By working together, we can further our shared goals of reducing private car ownership and putting the cars that are on the road to better use, all while giving Uber Rent customers more choice to pick the ideal car for their next errand or weekend getaway,” he said.

Car sharing service Turo is launching in Australia. Picture: Supplied

But between now and next year, there are hundreds of Australians left stranded by Uber Carshare.

An Uber spokesman acknowledged that the decision will have an impact on consumers to people who have existing bookings with Uber Carshare to those who rent their cars out via the platform.

“We apologise for the disruption this will cause and will provide support and assistance as best as we can,” a spokesman said.

Originally published as Uber’s Carshare rival booms as stranded Aussies seek options