SAN DIEGO — Fair, although still in startup stealth mode, appears poised to launch its business by next year, and is seeking new partners.
That according to comments from Georg Bauer, the company’s co-founder and president, was the upshot from Auto Finance Innovation 2017 last week.
“At the next [Auto Finance Innovation] conference, I would be delighted to share the Fair business model” Bauer said. “We live in a partnering economy, so … Fair will reach out, there are partners out there for us.”
Currently, Fair’s website shows that the platform will offer a flexible leasing model. “At Fair, we put you first, not the car,” according to the website. “That’s why we give you a personalized monthly payment range based on your finances, then show you all the best cars for your buck that won’t break the bank. Enjoy the freedom to drive the car you want for as long as you want. And when you’re ready, you can trade up, try something new, or just walk away.”
However, leasing needs to innovate in two ways: Do away with fixed terms, and offer all-in-one monthly payments, Bauer advised, perhaps indicating that Fair’s future business model might include full-service leasing — which are leases that include servicing, maintenance, and insurance in one payment.
“I think that’s where the opportunity is,” Bauer said. “Leasing isn’t going to go away, and car ownership isn’t going to go away, but we have to bring it to the next level.”
While Bauer declined to offer specifics on the startup’s business model, he did say Fair is a digital, paperless experience for customers that offers “simplifying access to mobility.” The startup is about “delighting the consumer, and that’s the bottom line,” he added. Fair has 60 team members.
Separately, the deal between Fair and used-car P2P marketplace Beepi was cancelled earlier this year, according to a published report. Beepi has since shut down and was sold off in parts, to repay creditors. Beepi originally had plans to merge its remaining Golden State assets with Fair.
“They failed because a brilliant idea was not turned into a sustainable business,” Bauer told attendees. “I looked at Beepi and some of their solutions, and was fascinated by idea.” While Beepi had the technology in place, taking the process nationwide and turning it into a sustainable business “is where a breaking point occurred,” he added.
