Uber in Kenya and Stanbic Bank yesterday announced a partnership that will see driver-partners currently driving someone else’s (fleet owners) vehicle gain access to their own vehicles through an elaborate financing programme that will enable them start their own businesses.
The Vehicle Solutions Programme, facilitated by Stanbic Bank, will offer qualifying drivers up to 100% financing for loans worth up to KES 1,000,000. The drivers should have a rating of 4.6 and above. The financing is rated at 14% with a maximum repayment period of up to 36 Months.
Speaking during the signing ceremony, Uber’s General Manager Loic Amado said, “At Uber, we are constantly providing opportunities for driver-partners in Kenya. This is why we continue to economically empower our partners through Vehicle Solutions Programs such as this to ensure drivers start their own businesses so that they can make the most when driving with Uber.”
The partnership between Uber and Stanbic Bank is redefining the structure of lending in Kenya by using Uber rating and earnings over the last three months as criteria for providing hundreds of driver-partners access with financing.
Stanbic Bank Head of Business Banking, Ben Wandawanda noted that this partnership is well aligned to the lender’s mandate to support entrepreneurs to flourish in their businesses.
“To make this unique opportunity as widely available as possible, the qualifying criteria for the finance is focused on the applicant’s proven Uber experience rather than his or her credit history,” Mr Jones explains, “and the primary qualifying requirement is driver’s earnings over last 3 months of KES 300,000 and an Uber rating of 4.6 or higher. We expect speedy uptake of this financing package, with the entrenchment of Uber’s services in Kenya” he added.
Uber has so far enabled about 150 drivers buy their own vehicles and become owners of their businesses through a partnership with Sidian Bank last year. The company, in November last year, also partnered with Branch, a mobile lending company, to provide drivers under fleet owners who had acquired their own vehicles, with a starter loan of KES 30,000 to help them pay for their business permits, NTSA stickers and buy new phones and a data plan.
According to Mr. Amado, the company is not only focused on increasing the number of trips for drivers but also financially upskilling them to build their own businesses. “Earlier this year we partnered with Old Mutual to provide driver-partners with free money management workshops, so that they can understand basic money principles, develop healthy savings habits and plan a path to financial well-being; so far, hundreds of drivers have benefited from this partnership. Aside from that, we have partnered with Total, Auto Express and 24 Hour Car Wash to give drivers discounts for services.” concluded Mr. Amado.
