Expanding its footprints across avenues, Uber Technologies has introduced its own auto leasing subsidiary to sign up more drivers. The step has led the company directly into financial services sector for the first time.
The launch of this pilot project follows the end of its partnership with Banco Santander’s U.S. lending unit earlier this year. The latter, declined to comment on why Uber broke the deal.
Although the announcement is official, no further details on the matter has been disclosed as of yet.
In November 2013,Uber had launched a program to arrange manufacturer discounts and lenders for prospective drivers who lacked cars in the hopes it would boost vehicles driving for the app-based service. Uber then had said that it hoped to finance 100,000 drivers.
According to Andrew Chapin, head of vehicle solutions for Uber, the company wants to provide drivers with more flexibility than traditional leasing companies can offer. Participants in Uber’s program can return their vehicle with two weeks notice and “limited additional costs,” reports Reuters.
Running as one of the fastest growing companies, Uber operates in 57 countries, with an estimated value of more than $40 billion. In the first week of July 2015, the company announced the establishment of its largest international facility in Hyderabad.