Ride-hailing firm Uber has sold its car-leasing unit Xchange Leasing to digital car marketplace Fair.com. However, the financial details of the deal were not disclosed. Fair has formed a partnership with Uber in which it will be the exclusive long-term vehicle leasing partner to Uber in the US for drivers wanting vehicles for more than 30 days.
Fair, founded in 2016 by Boone Park, Craig Nehamen, Georg Bauer, Jennifer Parke, Matt Cacciola, Scott Painter, said it was buying the lease portfolio through equity and debt secured during its recent funding round. 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 US.
Uber CEO Dara Khosrowshahi said, "As we progress on our mission to deliver better experiences for drivers, Uber is excited to partner with companies like Fair that have deep domain expertise and innovative solutions. We look forward to working closely with Fair to develop thoughtful, customized options for drivers in the US."
It was reported that Uber would be selling Xchange Leasing to Fair because the auto leasing business is suffering huge losses. Uber was reportedly losing $9,000 per car in August, which is 18 times than what was previously believed.