Uber signs mobile loan deal for drivers
Taxi hailing firm Uber has entered into a partnership with mobile loan lender Branch to advance credit to its drivers.
Through the partnership Uber Drivers can access up to Sh30,000 at an interest of 14.5 percent, payable over a six month period.
Speaking during the signing, Uber Kenya Operations Manager Kagure Wamuyu said the access to credit will enable drivers meet financial obligations, ensuring they are able to create wealth.
MS Wamuyu said the loan deal will ensure drivers maintain high level of service as only well rated drivers qualify for the loan.
Uber drivers will need to have completed 500 trips and maintain a rating of 4.6 stars to qualify for the loan.
According to Uber, the loan will enable drivers finance their operations by meeting all regulatory requirements.
“Drivers still require documents for a public service vehicle which is one of our requirements as Uber. So financing for the phone, business permit, NTSA/PSV business sticker is what we are targeting,” Ms Wamuyu said.
This is the second deal Uber is signing for its drivers after signing an agreement with Sidian Bank to advance up to Sh1 million in car loans payable at 10.5 percent.
Branch Africa Director Daniel Szlapak said the company is trying to bridge the credit access gap now that banks have slowed down lending.
“A lot of the businesses in Kenya and around the world do not have collateral and what we realized is that with the mobile phone, there’s enough data to make automatic lending decisions,” Mr Szlapak said.
Uber has been shaking up the market with price cuts and incentives for drivers as competition in the industry intensifies.
Report by Hilda Wathithi
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