Online cab aggregator Uber has invested at least Rs 43 crore in Mumbai-based car leasing firm Xchange Leasing, between January to March 2016, reports LiveMint. In December 2015, Uber had partnered with the company to lease cars out to drivers. The service, then, was being tested in Delhi, Mumbai and Bangalore. More details on the investment in Livemint.
Leasing is not new to Uber: it had started its leasing program globally in 2013 in partnership with General Motors and Toyota Motor, amongst others. Last Month, Toyota Motors had invested in Uber and had stated that it will offer leases to Uber drivers. It will let the drivers make payments with money they earn.
Uber isn’t the only one offering leased cars to drivers in India. In September 2015, Ola had launched a cab leasing program for drivers, allowing them to lease a car for a deposit and monthly lease payments, with an option to own the vehicle after 3 years. The company had then stated that program was being launched with 1,000 sourced vehicles from Maruti Suzuki in Bangalore, Chennai, Hyderabad and 3 other cities. In November, Ola had tied up with Nissan India to provide Nissan and Datsun brands cars to its drivers. The company had stated then that it will add over 100,000 vehicles through cab leasing by the end of 2016.
Although the financials of Uber India Technology aren’t available for the financial year spanning April 2014 to March 2015, the company has reported losses for the prior two financial years.
Earlier this month, Uber had raised $3.5 billion from the Saudi Arabian Public Investment Fund, which is Saudi Arabia’s sovereign wealth fund.
In August last year, Uber had raised around $1 billion in funding from Microsoft and The Times Group’s parent company Bennett, Coleman and Company Limited (BCCL).