Uber enters now on the leasing financial services market – what’s next, Uber banking?

Uber announced that has developed a new pilot programme called Xchange leasing, which is a leasing option. The program allows for unlimited mileage and the option to lease a used car, with routine maintenance also included. These features combine to create a product „unlike anything on the market today.”, says Andrew Chapin, Head of Vehicle Solutions at Uber, in a blog post.

„We launched our Vehicle Solutions program 18 months ago in response to feedback from prospective driver-partners who wanted to join the Uber platform but didn’t have access to a qualifying uberX car. Since then, nearly 20,000 drivers have participated in the program and collectively taken home over $200 million dollars driving with Uber.”, writes Chapin.

„We’ve learned a lot –– about when and where people drive, details about their vehicle needs, and how we can connect partners with options that work best for them. There is a lot of variability in how drivers use Uber, from the reasons they drive to the amount of time they spend on the platform. But one thing is clear: the key to flexible earnings is flexible financing.”, concludes Chapin.

„With this in mind, we have developed a new pilot program –  Xchange Leasing – which is a leasing option administered by an Uber subsidiary and designed to fit with the flexibility that drivers value most. The Xchange lease is one of a kind, and offers value that traditional auto leases do not provide. Unlike most multi-year leases that have high fees for early termination, drivers who participate in Xchange for at least 30 days will be able to return the car with only two weeks notice, and limited additional costs.”, added the Uber official.

Xchange Leasing is currently operating in major metropolitan areas in California (Los Angeles, San Francisco, and San Diego) and select cities in Georgia and Maryland.

Uber terminated its partnership with Banco Santander’s US lending unit earlier this year. In May, the firm struck a deal with peer-to-peer lender Zopa to offer its London-based drivers financing for new cars.

According to finextra.com, it’s arrival in financial services will send a shiver through the car financing market.

The world’s fastest-growing sharing-economy company, Uber operates in 57 countries and commands an estimated market value of more than $40 billion.