MANHATTAN, NY – Uber had recently announced that its auto-leasing business Xchange Leasing would be sold to Fair, another company specializing in the same industry.
Uber, an already-established auto leasing company will be giving up one of its companies. After it settles its agreement with Fair, the auto-leasing business will officially be under the ownership of Fair.
Fair is a startup auto-leasing company which lets its customers keep the car for whatever period of time they please. As part of a company expansion, the company decided to purchase one of Uber’s companies. The agreed upon amount is yet to be disclosed.
Contrary to popular belief, Uber is not really selling the Xchange Company upright. Apart from the amount to be compensated by Fair, Uber will also gain access to the Fair website using the Uber app, not to mention over 150 jobs which will be provided for Uber employees.
In other words, there will be a sort of partnership between Fair and Uber once the contract sets off. The agreement is more of a program than a selling point. The new program will allow new drivers to take on an auto-driving job, even the ones who do not have enough money to afford their own car.
The program will prove to be effective in lessening the expenses of Uber while increasing its manpower. Hopefully, it will help gain back the losses that they have incurred this past September due to increasing expenses versus the little money that they gained.
The action is probably connected to previous announcements from Uber that they will be shutting down the auto-leasing company due to expenses issues. It was stated by a representative that the expense of running the auto-leasingcompany is a lot higher than the profit that can possibly be gained from the business.
It is apparent that Uber may have underestimated the power of Xchange. Upon realizing their mistake, they made it a point to create a different strategy that can get the company back on track.
For the time being, that strategy includes their plan with the Fair Company. Uber originally planned to sell their company to Yandex Taxi, which happens to be one of their industry competitors. However, after realizing how they can work with Fair to bring back their loss, Uber decided to set forth a different direction.
Fair is originally a website company that purchases cars and advertises them on their website. There is a bid of prices and the prospects get to select a vehicle which will best suit his needs and wants. It only takes a few minutes for the request to get approved, and then the customer can come and pick it up at the Fair center. There is also no precise term of usage. Customers can use the car for as long as they want.
The agreement has yet to be approved by Fair. The Xchange Company had been asked many times by reporters before but the Fair representative insists that they refuse to give any comment on the matter.