Online cab aggregator Uber has reportedly invested $30 Mn (INR 200 Cr) in Mumbai-based car leasing firm Xchange Leasing India Pvt. Ltd, between June and September this year.
As per the documents filed with the Registrar of Companies, Xchange Leasing received $30 Mn from Uber International Services Holding BV and its subsidiary Mieten BV in two transactions, one in June and another in September, reported Mint.
Earlier in June 2016, Uber had invested $6.4 Mn(INR 43 Crore) in Xchange Leasing to take on its archrival Ola.
This development comes three months after Uber surrendered its Chinese market. Facing cash crunch and struggling to keep up with the competition in the Chinese taxi market, Uber Technologies Inc. decided to sell its China business to rival Didi Chuxing.
Uber started with its leasing business globally in 2013, In India, it got associated with Xchange Leasing in December 2015. Both companies have Mohd. Akbar Khan as a common Director, and it also operates with Uber in the US and South Africa.
Presently, Uber drivers have to pay INR 30,000 – INR 35,000, to be part of the leasing programme and then monthly lease payments with an option to own the vehicle after three years.
Ola on the other hand, began with the leasing programme initially in September 2015, thereby allowing its drivers to borrow taxis at cheaper interest rates. Ola further plans to invest $747 Mn (INR 5000 Cr) over leasing program in the coming year.
To tackle growing competition, Ola is also in talks with Japan-based SoftBank to raise $500 Mn in its new round of funding.
