Uber has announced today that it is selling its car-leasing subsidiary to Santa Monica-based tech startup Fair.com. The move allows Uber to concentrate on its core business while still offering drivers without cars the ability to lease a vehicle for a month or more in order to drive for the ride-hailing company.
Fair.com, which launched in Los Angeles in August and earlier this month expanded to San Diego and San Francisco, will acquire the active lease portfolio of Uber’s XChange Leasing through a combination of equity and debt secured during its latest funding round, the company said in a statement.
The XChange Leasing program allowed Uber drivers to lease cars through 14 dealerships. Approximately 40,000 cars were involved in the program. Uber has around 750,000 active drivers in the U.S.
New CEO Dara Khosrowshahi, who took over from Travis Kalanick after a series of scandals rocked the company, has said he would like Uber to go public in 2019, a move that would require the company to get its financial ducks in a row.
Fair’s app allows a consumer to pre-qualify for a range of monthly payments by scanning his or her driver’s license. The entire process is handling via the app. Each car comes with a limited warranty, routine maintenance, roadside assistance, as well as the option to add insurance. Returns can be made with five days’ notice.