7th May 2015
Peer-to-peer lender Zopa has partnered-up with on-demand taxi service Uber to provide finance to its London based self-employed drivers.
The partnership aims to support Uber drivers looking to make the move from renting a licensed vehicle to owning their own car outright by the end of the loan agreement.
Loans will be secured against the new cars with rates based on the driver’s credit risk. Interest rates will start from 6.9% APR over three to four years with loan values up to a maximum of £22,000.
Borrowers will be the registered keepers and users of the vehicles until the loan is repaid in full, after which ownership will then be transferred to them. Drivers will also be able to repay their loan early if they choose to.
Car loans will initially be funded by one of Zopa’s institutional lenders. Once a driver is pre-approved by Zopa, they will be able to choose their vehicle from Toyota Jemca, another Uber partner.
Giles Andrews, CEO and co-founder of Zopa, said: “Partnering with Uber is an excellent move for us as it marks Zopa’s entry into the secured auto lending industry, allowing us to provide secured loans to a growing market of self-employed customers. This unique commercial deal offers Uber drivers a low-cost loan to fund their vehicle at an affordable monthly cost.”
Fraser Robinson, business development at Uber added: “Our business is based on drivers and their ability to build their businesses on the Uber platform and as such as such we want to help them get on the road and start working on the Uber platform as cost effectively as possible. These deals add to the savings our partner-drivers can already achieve though Momentum, our loyalty programme for seasoned Uber partners.”