Startup Buying Auto Leasing Business from Uber

Startup Buying Auto Leasing Business from Uber

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In September, Uber revealed that it was to shut down its Xchange Leasing domain, an auto leasing business being run by the company. But recently Wall Street Journal report revealed that the leasing domain of Uber has now been bought by the startup auto leasing company

What Offers?

It offers you the alternative leasing options in which you have the privilege of keeping a car as long as you want. For this particular reason the company will be buying an Xchange leasing for some undisclosed amount.But here another thing to know is,Uber will not be selling this company outright. It will allow access to the Fair’s website through their app and will take a stake in the Fair.In return, the Fair is going to offer jobs to around 150 workers.

Uber Spokesperson:

In September, the Uber’s spokesperson said: “We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach.” You know what,Uber has misjudged the average loss per vehicle. It estimated the loss to be around $500 per vehicle,but in reality it was way more than what they estimated. The number was much closer to around $9,000 per vehicle. For this particular reason, Uber has purchased 40,000 vehicles for the leasing purposes through Xchange leasing and the cost for all that was about $400 million.

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