Fair closes $ 500 million to unlock the carpooling offer and upgrade subscriptions
SANTA MONICA, California, September 17, 2019 / PRNewswire / – In a transaction designed to significantly evolve its growing Uber partnership, a vehicle subscription app Fair announced today a $ 500 million revolving credit facility led by Mizuho Bank This will allow drivers across the country to access a Fair carpool-ready car, regardless of the credit.
SoftBank Group Corp. (“SBG”) is one of several credit providers participating with Mizuho in the Syndicated Credit Facility. The deal is designed to unlock new levels of growth for Fair and Uber by increasing the available supply of carpooling vehicles and making it easier for Uber drivers to earn with the company, even if they may not benefit from it. a traditional loan or lease.
“Too often people who want to drive for Uber can’t get or even access reasonable rates on a car loan, so we take care of it for them,” said Painter Scott, Founder and CEO of Fair. “This transaction is another clear signal that through our partnerships with SBG and Uber, Fair has the momentum, consumer demand for vehicles and access to capital to be the supply side solution for the global carpooling. “
The Mizuho transaction is the third major line of credit that Fair closed over the summer, following a $ 100 million loan facility and acquisition of a minority stake in Ally Financial in August, as well as a $ 50 million increase in its line of credit with Silicon Valley Bank in July. Fair continues to use credit facilities from Credit Suisse and Goldman Sachs to develop its consumer and ridesharing businesses.
“We believe Fair is an attractive partner for institutional lenders looking to manage the consumer credit risk associated with traditional auto financing,” said Andrew Karnovsky, Managing Director and Head of Automotive Banking Services at Mizuho Americas. “Not only do subscriptions make sense for carpool drivers who want to access a vehicle on their own terms, but they essentially replace a car debt-based system with a recurring revenue model and constant cash flow.
Thanks to Fair’s Uber program, drivers with a digital payment method can access a weekly Fair car directly through the Uber app, without a credit check and only with a refundable security deposit due in advance . Each car’s weekly payment includes virtually everything needed to drive for Uber, including unlimited miles, insurance, routine maintenance, and roadside assistance.
“Lack of access to vehicles is one of the biggest hurdles drivers face when trying to earn on Uber,” said Daniel danker, Head of Pilot Products, Uber. “We are extremely happy to continue to partner with Fair as they expand access so more people can win.”
“This new line of debt capital opens up unlimited growth potential for both companies as they continue to transform the fundamental relationship between people and cars,” mentionned Hiroki kimoto, Head of the investment department in real estate assets at SBG. “We are delighted to support the powerful natural synergies between Fair and Uber.”
Fair offers a new way to get a car that meets consumer demand for more freedom. Fair gives customers the flexibility to drive the car they want for as long as they want and allows them to go anytime, eliminating the long-term commitment of traditional finance or leasing. Fair lets you select your car, your miles, and view your payments, all in a simple, seamless and affordable end-to-end mobile and paperless experience. Fair is headquartered at Santa Monica, California For more information, please visit www.fair.com and follow on Twitter at @fairtheapp.
About Mizuho Americas
Mizuho Americas is a leading financial institution comprising several legal entities, which provide their clients with corporate and investment banking, finance, securities, treasury services, asset management, research and more. With professionals in offices across the United States, Canada, Mexico, Brazil and Chile, Mizuho’s operations in the Americas connect a broad customer base of large corporations, financial institutions and public sector groups to local markets and a vast global network. Learn more at mizuhoamericas.com.
Mizuho Americas is an integral part of the Japanbased at Mizuho Financial Group, Inc. (NYSE: MFG). Mizuho Financial Group is one of the largest financial institutions in the world, providing comprehensive financial and strategic services, including private banking and venture capital through its subsidiaries. The group has more than 900 offices and 60,000 employees worldwide in nearly 40 countries across the Americas, the EMEA region and Asia. From December 31, 2018, his total assets were $ 1.8 trillion. Learn more about Mizuho Financial Group at www.mizuho-fg.com.
About the SoftBank Group
The SoftBank Group invests in cutting-edge technology to improve the quality of life for people around the world. The SoftBank Group is made up of SoftBank Group Corp. (TOKYO: 9984), a holding company that includes providers of telecommunications, internet services, AI, intelligent robotics, IoT and clean energy technologies; Arm Limited, the world leader in semiconductor intellectual property; and the SoftBank Vision Fund, which invests up to $ 100 billion to help extraordinary entrepreneurs transform industries and create new ones. For more information, please visit https://group.softbank/en/.