In a bid to boost its supply of cars, the taxi aggregator has reportedly invested Rs 200 Crore in Mumbai-based car leasing firm Xchange Leasing India Pvt. Ltd between June and September. Uber had earlier invested Rs 43 crore in the company between January and March, this year, making the total investment to Rs 244 crore.
The investment comes in the backdrop of Uber selling its China business to local rival Didi Chuxing, and the increasing competition with Ola in India, which runs its own cab-leasing subsidiary, Ola Fleet Technologies Pvt. Ltd, which was started in September last year.
According to documents filed with the Registrar of Companies, Xchange Leasings works with Uber in the US and South Africa to supply cars. It also has Mohammad Akbar Khan as a common director on its own board as well as Uber India’s.
The car leasing programme offers car drivers to work for Uber, even if they don’t own a vehicle. Drivers have to pay a security deposit of Rs 30,000 – Rs 35,000 to be a part of the programme and pay a monthly lease payment. Drivers also have the option to own the vehicle after completing 3 years of work with the company.