Uber in Kshs 10 Billion Asset Financing Deal with Sidian Bank to allow its Drivers Buy Vehicles

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Uber launched operations in Kenya about 15 months ago and has made significant inroads in the market including growing its  presence in two cities. Uber also announced it had managed to  complete over 1 Million rides in the local market. The company has also faced challenges in the market such as the earlier attacks against its drivers by taxi operators complaining over the increased competition.

The San Francisco head-quartered company has now announced the launch of a partnership with Sidian Bank which will allow its driver partners access asset finance to purchase vehicles. Under the Vehicle Solutions Programme, prospective and existing partners will also have the ability to lease vehicles from Zohari leasing. Sidian Bank will allocate Kshs. 10 Billion over the next three years for the purchases.  The loans will be repayable over a  36 months period with interest rates starting from 10.5%. Under the Zohari leasing program, drivers will lease vehicles including Toyota Prius, Axio, Belta, Noah, Voxy and Fielder at a rate of Kshs.  40,000 per month over a minimum period of 36 months.

Eligibility for the loans and leasing program will be determined by one’s credit score in addition to driver’s established earnings and quality record with Uber. A driver without a strong credit score but has an Uber rating of over 4.6 and has completed over 500 trips will be eligible for the loans. Uber has also added a  platform to help operators new to Uber  find rental vehicles from which they can build a track record, which will allow them qualify for Sidian’s finance or leasing solutions. The solution has also been deployed in South Africa by Uber.

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