Loan Portfolio Servicing (LPS) this week announced the latest expansion of the company’s rideshare portfolio servicing platform, making LPS one of the biggest and most experienced rideshare servicers in the nation.
Most recently, LPS was retained to service 7,000 rideshare leases belonging to two different rideshare leasing companies. Prior to those partnerships, LPS helped Uber bring its Xchange leasing program to fruition and serviced more than 30,000 short-term leases through the spring of this year.
“Three years ago, this type of short-term lease product was practically non-existent. But the surging popularity of ridesharing — especially among millennials — has contributed to the need for flexible lease programs,” said Scott France, executive vice president of strategic initiatives for Innovate Auto Finance and president of LPS.
“From the beginning, flexibility has been one of our core values,” France continued. “We seek to understand what our clients are trying to accomplish and develop strategies that support their vision.
“For example, when Uber approached our company to service their upstart rideshare program, we needed to modify almost all of our processes to accommodate short-term, high-touch leases,” he went on to say. “We recognized a well-timed opportunity to service these portfolios, and our company has invested significant resources toward scaling our infrastructure to support this underserved niche.”
France emphasized the expertise needed to successfully service rideshare portfolios.
“They are not your average leases. We have to manage vehicle maintenance, taxes, tolls, title issues, registrations, citations and excess mileage with a frequency much higher than that of a typical lease,” he said. “All in all, rideshare portfolios behave much more like rental car portfolios and require a specialized servicing infrastructure.”
LPS has serviced high-touch rideshare portfolios for the past three years. In addition to modifying its processes and procedures, the company has invested in technology that is essential to providing quality service on this type of product.
“It’s fun and exciting to participate in the evolution of the automotive finance and lease arena,” France said. “We are at the forefront of developing viable servicing solutions that support such dynamic financing alternatives. We are always interested in what is next.”
France will speak at beginning on Nov. 13 in Palm Springs, Calif., on how to maximize returns and minimize losses from auto finance and lease portfolios in light of today’s changing markets.
For more information about LPS / Innovate’s services, France at [email protected] or (817) 471-1182.