Uber Nigeria has announced that it is now making low interest, used vehicle loans available to its top rated driver-partners. The move is the result of partnerships between Uber Nigeria, FirstBank Nigeria and other financiers.
Uber driver-partners in Nigeria will be able to apply for car financing loans for used vehicles based on their driver performance records. They loans will be accessed from the FirstBank of Nigeria at 20% per annum over a 24 months period.
Alternative offers also exist on the Uber Vehicle Solutions Programme, but this will attract a 20% rate per annum for an extended 36 months repayment period.
According to Ebi Atawodi, General Manager for Uber in Nigeria,
“We are absolutely committed to making it as easy as possible for our driver-partners to start and maintain their own successful and profitable businesses, and these used vehicle finance options make it possible for those with a demonstrable performance commitment to build sustainable businesses without incurring the high costs often associated with new vehicle purchases.”
In order to get these loans, Uber driver-partners will need an average driver performance rating of 4.5 or more. They must also have earned above ₦2.4 million in the last 6 months.
For Uber, offering car loans to their African drivers based on performance started in Kenya. In July this year, Uber partnered a Kenyan bank to offer drivers car financing loans up to 100% and at the time there were talks to expand to other African countries.
The ratings that Uber drivers get at the end of every ride are very crucial as thy can be booted out for very low cumulative ratings.
When an Uber driver cancels a ride you hailed, his ratings are reduced but regardless of this, Uber drivers still cancel when it suits them.
Therefore, giving loans based on ratings is also a brilliant way to ensure that drivers behave well and avoid bad ratings altogether. With this development, we can expect a reduction of awkward and outright bad customer service with Uber drivers.
On another note, Uber is eventually adapting to the Nigerian climate by taking measures that are well suited to the business environment.