Used-vehicle subscription service Fair is ending Fair Go, its weekly car-rental program that allowed Uber drivers to lease cars for short periods of time.
Uber drivers can still lease a car for a month or longer with Fair, but starting in April, they no longer will be able to do so for increments as short as a week, the website TechCrunch reported Thursday. The change is largely a result of skyrocketing insurance rates from carriers.
Fair — which is backed by SoftBank Group Corp., along with other funding sources — uses its subscription model to provide used and certified used vehicles to customers by working with car dealerships.
In September, Fair announced a $500 million credit deal with Mizuho Bank, which was expected to bolster Fair's partnership with Uber in providing drivers with access to vehicles for ride-hailing operations, regardless of their credit.
Uber sold its unprofitable leasing business, XChange, to Fair for $400 million in 2018.
In a statement to Automotive News on Friday, a Fair spokesperson said: "Due to an unexpected increase in insurance premiums that would have significantly raised prices for Fair's ride-share drivers, we will wind down our weekly ride-share service over the coming months."
The statement also said: "We are working to minimize the disruption for Fair's ride-share drivers, including notifying these customers of the status of their subscription in the coming weeks. We are working closely with Uber and exploring options with third parties to provide alternative customer mobility options to ensure a seamless transition for them, as well as continuity in Uber's vehicle supply."
In a statement to Automotive News, an Uber spokesperson said, "Connecting drivers to options for vehicle access so they can earn with Uber remains a top priority. We're thankful for Fair's collaboration and their contributions to our vehicle rental program. We're continuing to invest in rental partnership and building more flexibility beyond hourly, weekly and monthly options available today."