Uber would sell its US Auto-Leasing Business XChange Leasing to Fair.com, which is a startup auto leasing company, according to a person familiar with the matter.
In August, Uber officials said that the company planned to shut down XChange Leasing due to the increasing costs. At that time, Xchange Leasing had around 14 showrooms in the United States, and Uber said that several options were under consideration, including selling business or consolidating it to serve fewer cities.
In August, Uber was losing 9,000 per car, which was 18 times more than previously believed. The sale of Xchange Leasing comes after the announcement in August.
According to related report, Fair.com will purchase XChange Leasing for an undisclosed amount, however, Uber will not sell the company outright. Uber also planned to take a stake in Fair.com, and would offer access Fair.com through the Uber app as part of the deal. Fair.com would offer jobs to around 150 of the 500 workers at Xchange Leasing. The deal was expected to close early next year.
Currently, Xchange Leasing operated over 30,000 vehicles, and the net book value of the vehicles was around $400 million. Fair.com and Uber declined to comment on the deal on Tuesday.
In July, Uber also reported that it would merge its ride-hailing business in Russia with rival Yandex Taxi, which is a similar deal to the sale of XChange Leasing.