Used-car leasing app Fair closed a $500 million revolving credit facility financed by Mizuho Bank, the companies announced today. With Mizuho’s investment, the vehicle subscription company has raised nearly $2 billion in funding over four outside equity rounds.
The new credit facility is a move for Fair to increase its supply of rideshare vehicles for its Uber program as “lack of vehicle access is one of the biggest barriers drivers face when trying to earn on Uber,” Daniel Danker, head of driver product at Uber, said in a press release. Fair and Uber have worked as strategic partners since January 2018 when Fair acquired Uber’s Xchange Leasing portfolio.
Through Fair’s Uber program, rideshare drivers can access a vehicle for a weekly payment starting at $130, with a $500 initial payment, according to Fair’s website. The weekly payment program includes unlimited miles, vehicle warranty, routine maintenance and 24/7 roadside assistance.
Fair’s latest funding round was announced less than a week after Fair’s acquisition of Ford Motor Credit’s subscription service Canvas. The Canvas acquisition increased Fair’s fleet by 1,000 vehicles for active consumer subscribers and by 600 vehicles that can be used for rideshare drivers, Fair’s Chief Executive Scott Painter told Auto Finance News.
The Mizuho transaction comes on the heels of Fair’s $100 million debt facility and equity investment led by Ally Financial, as well as a $50 million increase to its credit line with Silicon Valley Bank in July.
Since its inception in August 2017, Fair has provided cars for 45,000 users through its 3,000 dealer partners in 30 markets across the country, the company noted.
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