Deciding whether to lease or buy a car isn't straightforward. Although buying a car is usually better, in some cases leasing does make sense. Regardless of your choice, shop around for the best deals and make sure to negotiate the sticker price. Newslook
SAN FRANCISCO — Uber announced Tuesday 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.
More:Uber enlists its drivers in the fight against sex trafficking with new national campaign
Previous reports suggested that Uber was looking to divest itself of its leasing operation due to increasing costs. Last summer, Uber said it would consider selling the business or consolidating it to serve fewer cities and make it more efficient. In December, the Wall Street Journal said Uber had reached a deal with Fair.
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.
Uber's once high-flying valuation of $69 billion took a hit recently after SoftBank and other investors agreed to buy nearly 20% of the private company at a valuation of $49 billion, a 30% discount.
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.
In contrast to traditional new-car leasing, Fair connects consumers with pre-owned vehicles. After a lease comes to an end, Fair gives the dealer who leased the car the first right of refusal to buy the vehicle back. If the dealer declines, Fair sells the car on the secondary market.
Follow USA TODAY tech writer Marco della Cava on Twitter.
Read or Share this story: https://usat.ly/2Ft8o4g
Read again Uber sells its leasing business to startup Fair.com : http://ift.tt/2Gw8Vn8Bagikan Berita Ini
0 Response to "Uber sells its leasing business to startup Fair.com"
Post a Comment