Uber Ties Up With Financiers And Automobile Firms To Empower Indian Drivers

In a bid to capture the Indian taxi services aggregation market, ridesharing app Uber has reportedly tied up with financial services firms and automobile manufacturers to launch a vehicle financing program for Indian cab drivers.

Earlier, it had offered LCD TVs and iPhones through lotteries to its cabbies along with bonus money per trip for plying in the festive week.
In order to make this initiative a success, Uber has partnered with lending companies like AU Financiers, Shriram Transport Finance and Toyota Financial Services, as well as automobile manufacturers, which includes--Mahindra, Maruti Suzuki-Tata Motors and Toyota.

Thanks to this interested drivers can purchase vehicles with a down payment of Rs 60,000 with subsidised interest rates and financing terms.
According to Umesh Revankar, MD & CEO, Shriram Transport Finance, “Shriram Transport Finance is glad to join hands with Uber. We will provide loans to the partner drivers of Uber. The association will facilitate us to expand our passenger car financing business.”

“The pact is a win-win deal for all the parties involved. Shriram Transport Finance and Uber encourages ‘Drivers cum Owner’ business model and the drivers get easy financing. Since, Uber ensures enough business to these drivers so that their vehicles are fully utilized thus assuring us of our EMI payments," he said.

However, the drivers will need to be active partners on Uber's platform with no other clauses attached to the scheme. The company also provides other incentives, which includes reference bonus, minimum income guarantee for certain hours, and incentive per trip to lure drivers to clock in more hours. But one must not forget that Uber is not the only one in the game providing incentives and aiding drivers with financing.

As per a statement issued by Uber India, "With Vehicle Financing, Uber takes a large step forward in its endeavour to create entrepreneurs in every section of society. We have now empowered individuals and have created an ecosystem that will enable hundreds of thousands of young Indians to become new business owners."