Ride-hailing app Uber is selling its failed auto-leasing business to a startup car marketplace Fair.com that offers open-ended leases for used cars, reports say. “Uber Technologies Inc. has agreed to sell its US subprime auto-leasing business to startup car marketplace Fair.com, bringing to an end the ride-hailing giant’s failed attempt to attract new drivers who lack regular access to vehicles,” The Wall Street Journal reported late on Tuesday.
Financial details of the acquisition have not been disclosed. Uber will also take an equity stake in Fair, as well as offer access to the service via its app. Earlier, in September, Uber shut down its money-losing “Xchange Leasing” business and has been seeking a buyer.
The on-demand car service decided to wind down the business after learning it was losing roughly $9,000 per car which is 18 times more than previously believed, the report added. Many of these cars owned by the unit have been auctioned off in the last few months. Fair.com is a car marketplace co-founded by Scott Painter — the former CEO of TrueCar and Georg Bauer — the former Vice-President of Finance at Tesla and BMW.