Uber drivers now have flexible vehicle leasing options through Fair.
That become official on Tuesday, with the companies announcing that Fair is purchasing the active lease portfolio of Xchange Leasing, an Uber subsidiary.
Fair is acquiring the portfolio — which includes existing contracts and vehicles — with equity and debt secured in its recent round of funding.
And this deal is already making a “significant positive impact” on the scalability of Fair’s model, with plans to “expand into several major markets,” a spokesperson said.
Santa Monica, Calif.-based Fair, which launched last year, offers flexible used-car leasing to consumers through dealerships.
In this deal, Fair is partnering with Uber to offer its drivers flexible access to vehicles for 30 days or longer.
The drivers, just like any other consumer, would still pick up the vehicle from the dealer partners.
“In fact, there’s no difference in this process from the dealer end at all. However, Uber drivers would access Fair to get a car via the Uber app through a customized portal and make weekly (not monthly) payments,” a Fair spokesperson said via email.
The two companies are also teaming up to develop new products and integrations for Uber drivers.
“As we progress on our mission to deliver better experiences for drivers, Uber is excited to partner with companies like Fair that have deep domain expertise and innovative solutions,” Uber chief executive officer Dara Khosrowshahi said in a news release.
“We look forward to working closely with Fair to develop thoughtful, customized options for drivers in the U.S.,” Khosrowshahi added.
As to how the Uber deal can help with scalability of the Fair model, the Fair spokesperson said: “This deal is already having a significant positive impact on our plans to scale. Besides the thousands of Xchange Leasing vehicle leases we now own, we are already working to expand into several major markets to support demand from Uber drivers alongside the regular customers who would also be able to access Fair in those areas.”
Uber drivers will be able to choose vehicles and set up payments on their smartphones.
The payments also cover maintenance, a limited warranty and roadside assistance. Drivers can also chose to purchase insurance from Fair, and they can return the vehicle whenever they choose.
“This is the perfect partnership for Fair. Uber was built on offering drivers flexibility around how and when they work, and we bring that same concept to the way drivers access vehicles,” Fair founder and CEO Scott Painter said in a news release.
“Eliminating the long-term commitment of traditional financing, Fair offers drivers an affordable, flexible option,” he said. “This partnership reinforces why the future of vehicle ownership lies in a flexible ownership model based on consumers’ needs.”