Uber announced it was shutting down its auto-leasing business Xchange Leasing in September, and now it’s being bought by startup auto leasing company Fair.com, according to a Wall Street Journal report.
Uber reportedly selling its auto leasing business to startup Fair.com
For an undisclosed amount
For an undisclosed amount
The report says that 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. Uber is not selling the company outright, though. It will take a stake in Fair and offer access to Fair’s website through the Uber app. Fair will offer jobs to about 150 workers in return.
The move is not a surprise as a spokesperson for Uber told The Verge in September that “We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach.” Uber had misjudged the average loss per vehicle, originally estimating it to be $500 per vehicle, but finding that number to be closer to $9,000 per car. Uber had purchased a little less than 40,000 vehicles for Xchange Leasing, with operations in 14 showrooms across the US. The value of these vehicles, according to the Wall Street Journal, was about $400 million.
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