Uber signs US$14mil car rental deal with South Africa's WesBank

  • TECH
  • Wednesday, 11 Nov 2015

New scheme for drivers: WesBank will rent cars to Uber drivers who do not qualify for traditional car loans due to a lack of credit history.

JOHANNESBURG: Online taxi-hailing service Uber has agreed a 200mil rand (RM61.41mil or US$14mil) deal with South African vehicle finance provider WesBank to rent cars to drivers who can't afford to buy them, the companies said. 

WesBank, which is an arm of lender FirstRand, will rent cars to Uber drivers who do not qualify for traditional car loans due to a lack of credit history. 

Around half of car loan applications are declined in South Africa, WesBank chief executive Chris de Kock told a news conference. 

WesBank will recoup the loan from the fares Uber drivers collect from passengers, lowering default risk, de Kock said. The amount drivers repay will depend on the level of business they are doing. 

Uber Technologies Inc, currently valued at over US$50bil (RM218.37bil), uses a free GPS-enabled app to link drivers from private car companies to passengers at cheaper rates and promises a quicker response time – often within 10 minutes. 

San Francisco-based Uber was launched in South Africa in August 2013 and operates in over 60 countries. Uber clocked 2 million rides in South Africa in the first six months of 2015, Uber said. 

FirstRand's enterprise development group Vumela will educate drivers on running their own business and also provide cash to WesBank if car loans are not paid. It will also finance 20mil rand (RM6.13mil) for the first 1,000 cars, Uber said. — Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Tech News

The car that transforms into an aircraft in just two minutes
Which country’s video game fans talk most about gaming on Twitter?
Biden sees work needed to address problems created by big tech firms -White House
This machine can make lunch in less than two minutes
Google likely to soon face antitrust claims over Play store from U.S. states - sources
Amid big hacks, U.S. spy agency touts collaboration center with private industry
Nasdaq ends at record high as Big Tech roars back
Teamsters union steps up efforts to organize Amazon workers
Like 'Terminator,' high-tech cyber crime to 'keep coming'
Facebook expands Shops to WhatsApp, Marketplace in commerce push

Stories You'll Enjoy