It looks like there is a deal struck between the Fair.com and Uber Technologies. The Fair.com is a startup car marketplace. Uber will be selling its US subprime auto leasing business to this startup. Uber took this step to reduce the losses it was suffering from.
The Xchange leasing is the auto-leasing business of Uber. It was a service that offered the drivers with poor history to drive a leased car in the name of Uber. This venture was started to bring in more drivers to the Uber fold and to offer better services. This way the passengers would enjoy reduced waiting times and better service quality. But, this program did not hit the right button.
The auto-leasing deal of Uber was a good one. But, the ride-sharing company did not make the expected profits. It had to shut down the Xchange leasing in September 2017 to recover the losses. This concept has over 3,000 cars that accounted for $400 million. By striking a deal with Fair.com, the ride-sharing company will make some profit.
The sale of the Xchange Leasing was an expected move from Uber. Fair.com startup buys old and new cars to use it for the car dealerships. The vehicles are listed in the business’s app. Customers interested in vehicles can pick one that suits their needs by paying monthly charges.