Driver-Partners can now get loans from Lagos State Employment Trust Fund

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December 8, 2016 4:47 PM

The package includes loans at an interest rate of five percent per annum, for periods of 36 months.

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Uber is changing the way Lagos driver-partners access finance and grow their small businesses. The global ride-sharing platform has partnered with the Lagos State Employment Trust Fund (LSETF) who will provide access to finance for budding transport entrepreneurs at just five percent per annum.

Uber has particular relevance in a city such as Lagos, where traffic congestion is an ongoing challenge. As Nigeria grows, rapid urbanisation means more people will use roads in its cities. Lagos is an economic hub which makes this challenge greater for those using its roads.

Ebi Atawodi, General Manager for Uber in West Africa says, “We are encouraged by the Lagos State’s commitment to ridesharing platforms like Uber. Their support of local entrepreneurs not only fosters the growth of sustainable businesses but strengthens a highly-viable transport industry in Lagos.”

Uber driver-partners in Lagos will also find it easier to buy their own vehicle. Driver-partners can now buy new cars that are locally-assembled in Nigeria by Stallion Motors; Hyundai i10 and Hyundai Grand Xcent, thanks to the new partnership.

If they qualify for the financing provided by LSETF, Uber entrepreneurs can buy any new locally-assembled car up to a value of three million naira and only need to contribute five percent of the vehicle purchase price when they buy the car.

According to Akintunde Oyebode, the Executive Secretary of LSETF, partnerships like this provide a platform for sustainable job and wealth creation and demonstrate a seamless collaboration between private capital and Government. “The partnership with Uber is proof of Lagos State Government's willingness to support innovative solutions that solve social problems, in this case, transport, and also provide jobs to its residents.”, he says.

The option to purchase locally made vehicles gives entrepreneurs the opportunity to obtain the assets required to grow their business and contributes to the growth of the local economy.

Access to affordable finance is critical to the success of any entrepreneur, as it frees up the cash flow for them to focus on growing their business.

ALSO READ: Uber's Kenyan rival is bringing the battle to Nigerian roads

The introduction of finance at a lower interest rate for driver-partners will help them thrive as they operate on the Uber platform.

The total offering to Uber Lagos entrepreneurs includes finance at a fixed interest rate of five percent per annum, with a loan period of 36 months.

Stallion motors are offering both the Hyundai Grand Xcent at three million naira and Hyundai i10 at two million and seven hundred thousand naira for this deal - both cars are locally assembled.

In order to qualify, Lagos entrepreneurs will be required to have been operating on the Uber platform and their Uber rating should be 4.5 or higher.

The Uber and LSETF partnership begins in December with the hopes of expanding it to more Uber partners in the near future.

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