Used-car leasing app Fair has finalized a deal to acquire the assets of Ford Motor Credit’s subscription service Canvas, the company announced today. The Canvas acquisition increases Fair’s fleet by 1,000 for active consumer subscribers and 600 that can be used for rideshare or consumer demand — adding to the 45,000 active users Fair currently has.
As part of the deal, Canvas customers will have the option to join Fair at the end of their current vehicle subscription. “Customers have all been notified Fair has acquired their Canvas contracts and they can continue to drive under their current contract until they’d like to return their car,” Fair’s Chief Executive Scott Painter told Auto Finance News.
Ford Credit established its used-vehicle subscription service Canvas in May 2017, providing vehicles for subscribers in San Francisco, Los Angeles and Dallas. The startup also had plans to expand to Boston, according to its website. Canvas Chief Executive Ned Ryan will be “a leader at Fair and important to sustaining Canvas operations post-acquisition,” Painter said, noting all details of his role are indeterminate.
Though Ford has sold its used-vehicle subscription service to Fair, the captive “learned a lot about subscription services, fleet management and the technology that underlies both,” Sam Smith, executive vice president of strategy and future products at Ford Credit, said in a press release. “We are proud of the work that was done in support of Canvas, and we wish the entire team the best of luck.” Ford Credit did not respond to a request for further comment.
Details of the deal between Fair and Canvas are scarce, but Canvas has provided vehicles for 3,800 subscribers, offering users access to a number of off-lease Ford vehicles starting at $329 per month, according to the Canvas website. On the other hand, Fair’s app — which also launched in 2017 — has reached more than 3.2 million users in more than 30 markets across the U.S. Fair did not disclose how much it paid for Canvas.
Fair’s deal with Canvas marks its second leasing portfolio acquisition since its launch. In January 2018, Fair finalized a deal with Uber to acquire more than 30,000 vehicles under its Xchange Leasing portfolio. Thanks to that acquisition, Fair became Uber’s exclusive leasing partner for U.S. drivers seeking a vehicle for 30 days or longer.
The acquisition comes on the heels of Fair’s latest funding round. On Aug. 28, Fair closed a $100 million debt facility and equity investment led by Ally Financial. With Ally’s investment, the three-year-old vehicle subscription company has raised $1.6 billion in funding over 10 rounds.
This story has been updated with exclusive comment from Fair’s Chief Executive Scott Painter.
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