A month ago, Uber announced it would sell Xchange Leasing to startup digital car marketplace Fair.
Uber’s leasing subsidiary in India, Xchange Leasing India Private Limited, posted a revenue of Rs 69.7 crore for FY17, compared with Rs 25.4 lakh in FY16, filings with Registrar of Companies (RoC) showed. The company is yet to file its full annual financial documents.
Recently, Uber CEO, Dara Khosrowshahi in his maiden tour to India, underlined the importance of India to Uber's ride sharing and food delivery businesses.
A month ago, news reports said Uber had announced it would look to sell the existing lease portfolio of its US-based auto-leasing business, Xchange Leasing, to digital car marketplace Fair.
However, it is yet unclear what the company is planning for the Indian arm of Xchange Leasing. The parent company had, in 2016, pumped in over Rs 243 crore into the India operations of Xchange Leasing.
Uber started a leasing programme globally in 2013, in partnership with firms such as General Motors Co and Toyota Motor Corp.
In India, competitors Ola and Uber are both burning cash to run vehicle leasing operations as they believe it would help them gain an edge in the highly-competitive market. Additionally, Ola had bought Delhi-based radio taxi service provider GCabs, owned by Apra Cabs India Pvt Ltd, in January 2015 and renamed it to Ola Fleet. While launching its leasing business, Ola had then said that it, along with financing partners and auto companies, will invest Rs 5,000 crore towards its leasing programme.
While Ola Fleet Technologies is yet to disclose its financials for FY17, the firm posted a net loss of Rs 13.2 crore for FY16, compared with a profit of Rs 3.9 crore during FY15. Xchange Leasing had posted a loss of Rs 94.5 lakh in FY16.
How has the coronavirus outbreak disrupted your life? And how are you dealing with it? Write to us or send us a video with subject line 'Coronavirus Disruption' to email@example.com