Uber will sell its Xchange Leasing division to digital car marketplace Fair, according to a report Tuesday in the Wall Street Journal. The service, which leased cars to Uber drivers with poor credit, was shuttered in August after sustaining heavy losses.
Xchange Leasing ran a fleet of close to 40,000 vehicles, which would rank it among the Top 10 commercial fleet lessors in the U.S., according to data from Automotive Fleet Magazine. However, Xchange Leasing was losing about $9,000 per car, according to WSJ.
Los Angeles-based Fair, founded in 2016, matches customers with cars based on desired monthly payments. The platform approves customers for a car with a driver’s license and bank account before having them sign for it through Fair’s mobile app.
Fair raised nearly $1 billion in debt and equity funding in October from a group that included BMW i Ventures and Penske Automotive Group.
As part of the deal, Uber drivers will have access to lease a car through Fair, the WSJ reported. The Wall Street Journal also reported that Fair will offer jobs to about 150 of the 500 Xchange Leasing employees.