While recent business moves indicate that Ford is retreating from its business in Europe, largely due to an inability to meet stringent rules about emissions, fuel economy and labor regulations, the company is also retreating from its subscription business. Vehicle subscription startup Fair recently agreed to acquire the assets of Ford Motor’s vehicle subscription service, Canvas, for an undisclosed amount. Canvas, which was launched in 2017, was a wholly owned subsidiary of Ford Motor Credit.
The agreement furthers Fair’s leadership position in the vehicle subscription category, enabling the company to continue to accelerate consumer adoption and expansion throughout the U.S. Fair is positioning itself as an app-based vehicle subscription powerhouse in the U.S. both for personal drivers and for those looking to begin a ride-sharing business. Users can pick from over 40 makes and models and pay by the week. Cars start at $130 per week with a $500 “start payment.”
Fair now reports that it has more than 45,000 users in 30 U.S. markets in about 20 states. The addition of Canvas will allow it to expand further.
“Canvas has built innovative subscription products that are relevant to consumers today, and like Fair, has opened up new ways for consumers to gain access to mobility,” said Georg Bauer, co-founder and chairman of Fair, in a statement. “This acquisition underscores our shared commitment to providing consumers with the car they want on their own terms.”
For Ford, the sale of Canvas is an effort to cut costs under an $11 billion restructuring plan that will unfold through 2022, but it also means the company will be retreating from future expansion into mobility. Since its launch, Canvas has acquired about 3,800 subscribers in San Francisco, Los Angeles and Dallas. Existing Canvas customers will have the opportunity to join Fair at the end of their current vehicle subscription. Fair and Canvas will provide more details to Canvas subscribers directly.