Fintech start-up Fair has raised $385 million in its latest funding round, led by SoftBank, which will enable global expansion of its vehicle subscription business.
SoftBank has investments in a number of disruptive businesses in the automotive sector, including Uber, China’s Didi Chuxing and south-east Asia’s biggest ride-hailing firm Grab.
As part of the investment, funds will be used to expand a partnership Fair has with global ride-hailing giant Uber.
Fair recently partnered with Uber in the US to provide cars to users who wanted to drive for the ride-sharing company.
The Fair service is based on a smartphone app, which allows drivers to subscribe to cars for their short or long-term needs quickly and with minimal paperwork. When vehicles are no longer needed, they can be handed back without any penalties.
The investment in Fair will enable the company “to provide cars on a global scale, and help reduce the barriers to mobility,” according to Lydia Jett, investment adviser to the SoftBank Vision Fund.
Earlier this year, Fair reported 40% month-over-month customer growth for two quarters.
The company also reported having more than 2% of the total addressable market in Los Angeles, its initial launch city.
Fair said it attributes its growing momentum to consumer behaviours shifting away from long-term commitment and the debt associated with car loans, among other factors.
At the time, Scott Painter (pictured), Fair founder and CEO, said: “We're going through fast geographic expansion. The US has the largest used vehicle market with 40 million cars, and that's a massive opportunity for us.
“We're seeing the viral coefficient kick in as markets mature to our model and become more predictable, but our growth is also fueled by our partnership with Uber, which has really started to bear fruit as we deeply integrate and push volume that expands Uber's own driver community.”