In September Uber has announced that it will shutting down its auto-leasing business Xchange Leasing, and now Uber has agreed to sell its subprime auto leasing business to startup auto leasing company Fair.com. Fair.com Acquires Uber’s Auto Leasing Business.
And now it’s being bought by startup auto leasing company Fair.com, which offers alternative leases where you can keep a car as long as you like, will buy Xchange Leasing for an undisclosed amount.
Fair.com Acquires Uber’s Auto Leasing Business
It is unclear how Fair plans to incorporate Xchange Leasing into its own business, because terms of the deal were not announced. However, Uber is not selling the company outright. It will take a stake in Fair and offer access to Fair’s website through the Uber app. In return Fair will offer jobs to 150 workers approximately.
Spokesperson for Uber said:
We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach.”
In 2015, Uber launched Xchange Leasing with the aim of helping U.S. drivers to drive for the ride-hailing company. The main purpose behind it was that if more people drive for Uber, the better Uber’s chances of reducing passenger wait times and increasing market share. The company charged drivers nearly $500 a month on a 36-month lease term and deducted payments from earnings of drivers. But it created problems for the drivers and Uber also lost about $9,000 per vehicle.