Car leasing startup Fair reported Sept. 16 it had secured a $500 million loan from Mizuho Bank, marking the third line of credit established by the company since July.
“This transaction is another clear signal that ... Fair has the momentum, consumer demand for vehicles, and access to capital to be the supply-side solution for ridesharing globally,” Fair Chief Executive Scott Painter said in a statement.
Santa Monica-headquartered Fair will use the new funding to scale its business of leasing cars to rideshare drivers in the United States.
Fair provides a smartphone app that lets users choose and lease a car owned by the company, which also provides financing options. Users pay a monthly fee for a Fair car, which comes equipped with roadside assistance and a limited warranty.
While Fair caters to rideshare drivers who want to join services like Uber but don’t own a car, it also offers leases for average drivers.
Backed by local firms including Santa Monica-based Upfront Ventures and Marina del Rey-based Moonshots Capital, Fair has grown rapidly since its 2016 launch and has accumulated "just under $2 billion in debt and equity funding," a company spokesperson said.
“Fair is an appealing partner for institutional lenders,” Mizuho Americas Managing Director Andrew Karnovsky said in a statement. “Subscriptions make sense for ridesharing drivers who want to access a vehicle on their own terms, (and) they essentially replace a system built on auto debt with a recurring-revenue model and steady cash flow.”
Tech reporter Samson Amore can be reached at firstname.lastname@example.org or (323) 556-8335. Follow him on Twitter @samsonamore.
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