At a Chicago-area Nissan dealership, Xchange accounted for 41 percent of sales in May. In each of the first three months of the year, sales more than doubled from the same time in 2015, mostly because of Xchange deals, said a store executive, who asked that we not use his or her company's name.
Uber is "changing car ownership for drivers, with flexible options that allow people to get access to a car when they want to earn extra income," said Andrew Chapin, a former Goldman Sachs banker who now runs Uber's vehicle solutions group.
Chapin was managing operations at Uber in New York at a time when the company was exclusively a service for black cars. In his many conversations with drivers, he would frequently hear about the challenges they, their friends and family had getting financing for vehicles because so many were immigrants and lacked a credit history.
Chapin had some thoughts about what Uber could do. After he and Uber CEO and co-founder Travis Kalanick took a trip over to the New York Taxi and Limousine Commission in late 2012, Chapin ran a business idea by his boss.
Kalanick told him to go figure it out, so Chapin spent much of 2013 talking to carmakers, auto lenders and rental companies about the problem Uber wanted to help solve.
Xchange is one of several products Uber now offers. Another program lets drivers whose cars are in the shop get weekly rentals from Enterprise at a discounted rate and with unlimited miles.