Uber’s car-lending business is encountering new problems after the firm leased vehicles prone to flare-ups in Singapore.
According to Wallstreet, he ride-hailing corporation obtained capital from Goldman Sachs Group Inc., and various banks used to acquire more than 1,000 faulty Honda Motor Co. cars from importers.
Uber directors in Singapore were informed that Honda had summoned the Vezel models when it purchased and let them to motorists, and at least one car disintegrated into flames in January, the publication stated.
Uber, which has come under investigation over wage and job conditions, said it took “swift action to fix the problem” after hearing of the car fires and operated with Singapore officials on its reply.
“We acknowledge we could have done more—and we have done so,” a spokesman for the company wrote in an email.
“Since the beginning of the year, we’ve proactively responded to six vehicle recalls and will continue to do so to protect the safety of everyone who uses Uber.”
Bloomberg announced last year that Uber’s lease agreements hobbled some subprime borrowers to cars they cannot afford.
The San Francisco-based company got a $1 billion credit means led by Goldman Sachs to finance the business at the time.
In January, Uber spent $20 million to finish a US Federal Trade Commission claim, saying the firm made wrong or misleading information about its leasing programme, among other alleged breaches. Uber didn’t confess or refuse any wrongdoing.