Will Uber be the Uber of banking?
30 July 2015 | 19370 views | 3
The Uber of banking might well turn out to be....Uber, as the darling of the startup scene ditches banking partner Santander to set up its own car financing arm.
Uber itself has provided an answer to the question most often popped in fintech meetups with the launch of a new pilot programme dubbed Xchange Leasing.
The move was announced by the ride services firm's head of vehicle solutions Andrew Chapin in a blog post: "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. The program allows for unlimited mileage and the option to lease a used car, with routine maintenance also included."
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.
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.