Financial Inclusion

On-demand Taxi Operator And a Lending Company Helps Drivers Own a Car

Uber is being known for its innovative taxi services provided to its commuters. The recent move of adding supercars like Lamborghini Gallardo Spyder, Maserati GranTurismo and others to its service in Singapore has proved that it is truly a trendsetter. Apart from providing its service to the commuters, Uber has also moved to help its drivers buy their own cars instead of renting it.

Uber has partnered with UK’s peer-to-peer lender, Zopa, to help its drivers buy their own cars.

Uber and Zopa’s partnership will help Uber drivers transition from renting a licensed vehicle to buy their own car by the end of the loan agreement. The partnership is aimed to reduce the monthly cost of the drivers by replacing rental fees with a lower monthly repayment rate.

The program serves drivers who are at least 20 years old, employed with Uber for at least three months and are residing in the UK.

As per Zopa, loans will be secured against the new cars with rates based on the driver’s credit risk. Loans can be borrowed up to a maximum of £22,000. The rate of interest charged would be 6.9% approximately and range over a period of three to four years. However, drivers may pay off their loans early. Borrowers will be the registered keepers and users of the vehicles until the loan is repaid in full, after which ownership will be transferred to them.

Once the loan is pre-approved by Zopa, drivers can select a vehicle from Uber’s partner Toyota Jemca. Giles Andrews, CEO and Co-founder of Zopa, states that, “Zopa and Uber are two rapidly growing businesses and this deal is aimed at accelerating the growth of the two companies in the UK.” He adds, “The partnership is a good fit between two technologically disruptive companies.”

About Zopa

Founded in 2005, Zopa is UK's leading peer-to-peer lending service. The company has helped people lend more than £843 million in peer-to-peer loans. Zopa has also been voted the “Most-Trusted Personal Loan Provider in the Moneywise Customer Awards for the past five years in a row.

About Uber

Uber is an on-demand taxi service which is headquartered in San Francisco, California. It is known for its mobile app-based transportation network. Uber was founded as "UberCab" by Travis Kalanick and Garrett Camp in 2009 and the app was released in June 2009. It raised $49 million in venture funds by 2011. Beginning 2012, Uber expanded internationally.

You can read more about Uber’s initiative in providing innovative services here.

Shubha

Shubha has deep interest in studying the intersections of the physical world with the digital world and writing about it. She is a techno-commercial person, a gadget freak and she has worked at Amazon in the past.

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