Uber reportedly selling failed leasing business to Fair.com

  • Uber reportedly selling failed leasing business to Fair.com

Uber reportedly selling failed leasing business to Fair.com

Uber has struck an accord to sell its auto-leasing business to startup vehicle marketplace Fair.com, according to a newspaper report.

Partnerships like this one are quickly becoming a cornerstone of the management style of Uber's new CEO Dara Khosrowshahi.

Neither Uber nor Fair.com responded to a request for comment.

Uber in September announced it was closing Xchange Leasing, a subsidiary launched roughly two years earlier to lease vehicles directly to drivers. Founded by former TrueCar CEO Scott Painter, and auto industry veterans Georg Bauer (BMW, Mercedes-Benz, Tesla) and Fedor Artiles (Mercedes-Benz, Chrysler, Volkswagen, Tesla) the flexible auto ownership platform lets you lease a vehicle for as long as you like. Uber will both take a stake in Fair and point would-be drivers to the site through its app.

As part of the deal, expected to close early next year, Uber will offer potential drivers in the United States access to Fair to lease a auto, the Journal reported.

Uber also merged its Chinese division back in 2016 with Didi Chuxing.

In other related news, Uber recently combined its business in Russian Federation with Yandex. That was 18 times more than expected.

Each vehicle was costing Uber about $9,000, far more than the $500 estimated by Uber, according to the WSJ.

Drivers leased the cars, with the payment deducted from their earnings, and were allowed to return them easily. Uber lost $1.46 billion in the third quarter this year, up from $1.06 billion in the previous quarter.

As of October 2017, Fair.com had managed to score up to $1 billion in debt and equity funding from BMW's iVentures, Penske Automotive Group, and Mercedes Benz, among other investors.