Uber, one of the largest cab aggregator is all set to invest $30 million in Mumbai-based car leasing firm Xchange Leasing India Pvt. Ltd, between June and September this year.
As per the information,Xchange Leasing received $30 million from Uber International Services Holding BV and its subsidiary Mieten BV in two transactions, one in June and another in September.
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.
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.
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 million 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.