Lease Program Is On the Horizon for Fasten Rideshare

Fasten plans to explore opportunities to offer a leasing program to its drivers, following the startup’s nationwide expansion, Mobility Finance has learned.

The Boston-based rideshare company, founded in 2014, came to prominence in 2016 when Uber and Lyft left Austin, Texas, last year — in protest of the city’s rule that drivers need to be fingerprinted by a third-party service as a security measure. Smaller rideshares including Fare, WingzInstaRyde, and RideAustin, were then able to infiltrate the market; Fasten currently operates in Boston and Austin.

Fasten’s business model differs from traditional ridesharing platform, in that Fasten charges drivers a 99 cent flat fee per ride, as compared to a percentage of a total trip. In keeping with its “people first” motto, the company is looking at ways to offer leasing to drivers that will not “lock” drivers in but will help maximize a driver’s personal profit, a Fasten spokesperson told Mobility Finance.

In order to offer this leasing program, Fasten needs to operate at a national level, the spokesperson said. In the near future, it is not a focus for the company but it is “on the radar,” the spokesperson added.

Separately, Fasten is currently seeking to raise $20 million in Series B funding, which it hopes to close it by summer, as well as expand to one or two markets, Mobility Finance previously reported. Fasten has regions in mind for the expansion, but declined to offer specifics.

Notably, Uber and Lyft began operating in Austin yesterday after Gov. Greg Abbott signed into law a bill that puts the state — and not local governments — in charge of regulating the ride-hailing industry.

1 - Reader Likes This Post