Uber announced it was shutting down its auto-leasing business Xchange Leasing in September, and now it’s being bought by startup auto leasing company Fair.com, according to a Wall Street Journal report.
The report says that Fair.com, which offers alternative leases where you can keep a car as long as you like, will buy Xchange Leasing for an undisclosed amount. Uber is not selling the company outright, though. It will take a stake in Fair and offer access to Fair’s website through the Uber app. Fair will offer jobs to about 150 workers in return.
The move is not a surprise as a spokesperson for Uber told The Verge in September that “We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach.” Uber had misjudged the average loss per vehicle, originally estimating it to be $500 per vehicle, but finding that number to be closer to $9,000 per car. Uber had purchased a little less than 40,000 vehicles for Xchange Leasing, with operations in 14 showrooms across the US. The value of these vehicles, according to the Wall Street Journal, was about $400 million.