Uber announces 10 billion Shilling deal with Sidian Bank for driver vehicle purchase

About 15 months back, Uber launched operations in Kenya and the company has significant inroads into the space, expanding its presence to two cities.

Recently, Uber announced that it had completed 1 million rides in Kenya despite earlier attacks targeted at its drivers by taxi operators, something the company has had to deal with in various markets across the world.

The San Francisco-based company has now announced that it is launching a partnership with Sidian Bank which will allow its driver partners have access to asset finance in order to purchase vehicles.

Under the setup, called the Vehicle Solutions Programme, prospective and existing driver partners will be able to lease vehicles from a company called Zohari Leasing.

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Sidian Bank will allocate 10 billion Shillings over the next three years to fund the purchases. Techweez reports that the loans will repayable over a 36-month period with interest rates starting from 10.5%.

Under the program, drivers will be able to lease cars such as the Toyota Prius, Axio, Belta, Noah, Voxy and Fielder at a rate of 40,000 Shilling per month over a minimum period of 36 months.

A driver's credit score will determine his/her eligibility for the program in addition to the drivers' established earnings and quality record with Uber.

Techweez further reports that Uber has also added a platform to help operators new to Uber find quality rental vehicles from which they can build a track record, which will then allow them qualify to be eligible for the Sidian finance or leasing scheme. This solution has already been deployed in South Africa by Uber.