Uber makes Rs 200 crore in­vest­ment in Xchange Leas­ing

Voice&Data - - APP ALERT -

Af­ter in­vest­ing Rs 43 crore in Mum­bai-based car leas­ing ser­vice, Xchange Leas­ing be­tween Jan­uary and March, Uber has upped its in­vest­ment in the car leas­ing com­pany by a whop­ping Rs 200 crore be­tween June and Septem­ber, re­ported Livemint, a busi­ness pub­li­ca­tion in In­dia.

The car-leas­ing pro­gram 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 pro­gram and pay a monthly lease pay­ment. Driv­ers also have the op­tion to own the ve­hi­cle af­ter com­plet­ing three years of work with the com­pany.

As per the doc­u­ments filed with the Regis­trar of Com­pa­nies, Xchange Leas­ing re­ceived Rs 201.71 crore from Uber In­ter­na­tional Ser­vices Hold­ing BV and its sub­sidiary Mi­eten BV in two tranches, one in June and an­other in Septem­ber.

In­ter­est­ingly, the cab ag­gre­ga­tors’ in­vest­ment comes along­side 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.

End of com­pe­ti­tion in China im­plies that the cap­i­tal that would have oth­er­wise been in­vested in China is now be­ing redi­rected to In­dia. “We were spend­ing over a bil­lion dol­lars in China an­nu­ally. So, that stops. We can see a por­tion of that be­ing in­vested (in In­dia) as we con­tinue to grow the busi­ness in In­dia. We had sev­eral re­sources that were ded­i­cated to our China busi­ness. Like a 150-per­son prod­uct and en­gi­neer­ing team that was based in San Fran­cisco and that was com­pletely ded­i­cated to the China busi­ness. So, you will see a por­tion of that be­ing fo­cused now on the In­dia busi­ness,” said Uber In­dia head Amit Jain in a re­cent in­ter­view with a busi­ness pub­li­ca­tion.

Notably, Uber’s di­rec­tor of fi­nan­cial re­port­ing, Joshua James Wal­dron, serves on the board of Xchange Leas­ing In­dia. Be­sides, Xchange Leas­ing and Uber In­dia Sys­tems Pvt. Ltd have a com­mon di­rec­tor, Mo­ham­mad Ak­bar Khan.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.