Easy Taxi has taken initiative to move its services to the next level with the announcement of a $ 9.8 million asset financing plan that will improve delivery services of taxi drivers who operate using the company’s hailing app. The deal, dubbed ‘1 Billion for 1,000 drivers’ will help drivers to improve the quality and efficiency of their vehicles.
Kenya Commercial Bank apparently is the first confirmed financial institution to partner with Easy Taxi. The bank will provide onward lending to the taxi operators at below-market rates, with the drivers paying back in installments.
“Our business model is unique in the sense that it encourages our drivers to become digital entrepreneurs”, Easy Taxi Kenya CEO and Managing Director Paul Ndichu said at the launch of the partnership. “By offering them this facility, we empower them to harness their entrepreneurship opportunities and increase their capacity to engage in the transport sector in Kenya.”
In order to access this loan facility, taxi drivers across the country would be required to register with Easy Taxi, receive official endorsement and a letter of recommendation in order to access the financing and scale up their businesses.
The move is however coming at a time when Uber Kenya, another taxi hailing service, plans to phase out all cars manufactured before 2008 from its service in March.
Easy Taxi Kenya is operational in Nairobi, Nakuru and Mombasa, with over 2,000 taxis on their roster.