It was first rumored earlier this year that Uber was thinking about shutting down its car leasing business in the United States. The company confirmed a couple of months back that it’s shutting down the business in favor of a “less capital-intensive approach.” The car leasing program was costing the company money that it couldn’t afford to lose so it decided to pull the plug. Uber has now gone one step further and sold the business to Fair.com.
The Wall Street Journal reports that Uber has sold its Xchange Leasing business to online car marketplace Fair.com. The report doesn’t mention how much the company is going to pay for Uber’s car leasing division.
The report adds that it’s not going to be a clean break for the division. The terms of the sale apparently give Uber a stake in Fair and give it the right to redirect users through its app to Fair.com. It’s also mentioned that around 150 workers affected by this deal will be offered jobs by Fair.com.
Uber’s cash problems are well documented and the company has been consolidating its business in order to improve the bottom line. It was only a matter of time before the company got rid of this division which was costing it money.
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