“We’re not identifying specific countries for future growth at this time, but are certainly planning to explore scaling our Uber platform internationally to supply cars for their drivers around the world,” a company spokeswoman told Auto Finance News. Since acquiring Uber’s Xchange Leasing portfolio in January, Fair has been financing vehicles for Uber drivers.
The financing signals that the subscription-based model of car ownership is on track to replace the traditional, “decades-old, debt-based system of car-buying,” Fair Chief Executive and Co-Founder Scott Painter said in a press release.
With additional investments from Exponential Ventures, Munich Re Venture’s ERGO Fund, G Squared, and CreditEase, Fair can jumpstart a global growth plan for its partnership with Uber Technologies, Painter said.
The Uber alliance, plus a partnership with dealer groups such as Penske Automotive Group, contribute to Fair’s “partnership model,” which differentiates Fair from other car leasing apps such as AutoGravity, Carvana, and Vroom, Painter told AFN. Fair also partners with Ally Financial Inc., which sends consumers looking for alternatives to traditional financing to Fair.
Including the SoftBank funding, Fair has raised $500 million in equity this year. Since its inception in August 2017, Fair has provided cars for 20,000 users through its 3,000 dealer partners in 26 markets across the country, the company noted.