Uber to sell its auto leasing business to Fair.com

World's largest ride-hailing firm Uber is selling its auto leasing business Xchange Leasing to automotive Fintech company Fair.com for an undisclosed amount. The news was first reported by Wall Street Journal, citing people familiar with the matter.

Xchange Leasing, which partners with auto dealerships to offer vehicle leases to US Uber drivers, sports a net book value of $400 million made up of over 30,000 vehicles but has suffered huge losses recently. Uber was reportedly losing $9,000 per car in August, which is 18 times than what was previously believed.

Uber had announced in September that, "We have decided to stop operating Xchange Leasing and move towards a less capital-intensive approach." Fair.com, founded in 2016 by Boone Park, Craig Nehamen, Georg Bauer, Jennifer Parke, Matt Cacciola, Scott Painter lets you lease a vehicle for as long as you like.

However, Uber is not selling the company outright. It will take a stake in Fair.com and offer access to Fair's website through the Uber app. Fair will offer jobs to about 150 workers in return.