Last week, vehicle subscription app Fair announced it is buying the assets of Canvas, Fords vehicle subscription. Terms of the sale were not disclosed. The deal will help the two-year-old Fair continue to expand into the vehicle subscription market. As a result of the acquisition, Canvas is no longer accepting new subscribers. Prospective customers can visit Go.Fair.com/Canvas to download the Fair app and get $100 off on Fairs start payment by using the code CANVAS (offer expires 12/31/19), according to the Canvas site.
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 September 12 news release. This acquisition underscores our shared commitment to providing consumers with the car they want on their own terms.
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Ford acquired Canvas, now a wholly owned subsidiary of Ford Motor Credit Company, in 2016. Through the Canvas brand, Ford and Lincoln have had 3,800 subscribers in the program in the San Francisco, Los Angeles and Dallas markets. Subscribers could lease vehicles through Canvas for all-inclusive pricing starting at $400 a month. Once Canvass current subscriptions are completed, they will have the option to join Fair. Fair and Canvas will reach out directly to affected subscribers with additional details.
Canvas built an impressive business and we learned a lot about subscription services, fleet management and the technology that underlies both, said Sam Smith, executive vice president of Strategy and Future Products at Ford Credit. We are proud of the work that was done in support of Canvas and we wish the entire team the best of luck.
Canvas mission is to provide customers with flexible access to the vehicle of their choice for an affordable monthly payment, said Ned Ryan, CEO of Canvas. Our strong synergies with Fair make this a natural fit.
TechCrunch said that Ford will receive an equity stake in Fair. The Canvas subscription service is similar to Fair, but on a much smaller scale, offering leases starting at three months. To date, Fair has about 45,000 subscribers in 30 markets, while Canvas had about 3,800 in three markets.
According to TechCrunch, Canvas will continue to run but it will gradually transition to the Fair brand. Canvas employees, technology and business are all part of the deal. The Canvas team is based in San Francisco and will continue to operate there, expanding Fairs Bay Area market.
Through acquisitions and investment, Fair has had the opportunity to expand, and it looks like it will continue to do so. Meanwhile, manufacturers including Ford, Cadillac and Volvo are finding that their original subscription programs did not produce the results. By the sheer volume of subscribers, Fair is learning what works and what doesnt, and it seems to be finding success. We anticipate that the vehicle subscription market will continue to rightsize as auto manufacturers and third-party services like Fair figure out how to navigate the needs of todays drivers.