Last year, the ride-sharing giant Uber introduced a new way to expand its driver pool. Uber subsidiary Xchange Leasing, LLC allows drivers with bad credit scores to lease cars at a higher-than-average weekly rate.
With the help of a $1 billion credit facility that includes capital from Goldman Sachs, Citigroup, Deutsche Bank AG, JPMorgan, SunTrust and Morgan Stanley, Xchange offers subprime leases, targeting drivers that have been turned down by traditional lenders.
The Xchange offer is attractive to many drivers because of its minimal down payment and unlimited miles. Uber claims that Xchange is not intended to turn a profit, but rather to increase the number of drivers available.
Continue reading →