Uber Lagos is driving its expansion in Nigeria with new financing scheme developed in partnership with Korean automakers, KIA motors and Lagos-based Access Bank.
The goal is to make people become an Uber investor with KIA model range, Uber says in a statement to TechCabal.
“We’re particularly focused on building a service for hundreds of millions and creating investment opportunities,” said Ebi Atawodi, GM Uber. “Premised on this, Kia’s leadership and experience in the auto industry will be crucial in helping us to meet this important goal.”
Access Bank Nigeria is the financier in the partnership. The company said that interested Uber investors who do not want to make an outright purchase of the vehicle can access the financial scheme powered by Access Bank that gives 10% equity contribution, competitive equated monthly installment as low as N95,000 monthly, special pricing and flexible repayment tenure of up to 48 months.
Uber is looking to capitalize on Nigeria’s large population and its potentials as a commercial hub on the African continent.
An earlier Bloomberg report says the company is looking to grow its footprint in Nigeria, by increasing its drivers supply side fivefold.
The company has been known to operate a fleet partnership programme where car services or private individuals who own more than one car can register with Uber as a partner and set up contract with drivers. Under this arrangement, Uber pays the partners, instead of paying drivers directly, while the partners pay driver according to previously agreed-upon terms. This is anecdotal, but most Uber drivers in Lagos are signed up to this sort of contract. It’s likely this partnership will increase the amount of drivers with individual cars on Uber’s rotation.
Uber recently celebrated its one year in Nigeria and has grown at a decent clip since its launch. Drivers ETA has reduced within Lagos business districts and the prospects of this partnership will drive that ETA down even further.