Popular online taxi-hailing service Uber is said to have agreed a 200 million rand ($14 million) deal with South African vehicle finance provider WesBank to rent cars to drivers who can’t afford to buy them, according to reports from Reuters. According to Reuters;

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

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.

This deal holds significant implications for Nigeria considering its status as the largest economy in Nigeria and a market that Uber takes quite seriously. Uber is still fairly new in Nigeria having commenced operations in Lagos a year ago. Lagos has a population of about 15 million people and is a potential major market for the company. The Nigerian government has also been pushing an auto policy that it hopes will revive local car market.

The South African deal suggest something similar could be in the offing for Nigeria as they look at bolster their pool of drivers in the country. Uber can still not be easily accessed in a lot of locations in Lagos as not a lot of drivers are available to even serve small but growing customer base. If Uber can replicate this same deal in Nigeria, then it has a massive window of opportunity to create massive employment for a lot of Nigerians. The Lagos State Government should be very much interested in such a scheme considering the massive economic boost it could bring to the state.

Uber’s model more importantly could also be very attractive to Nigerian banks as the revenue cycle of the Uber cab business protects the banks from the risk of cash hoarding by drivers. With Uber, the banks have a reliable partner that can ensure payments are ring fenced for principal and interest repayments as customers do not pay the drivers but pay directly to Uber. Nairametrics expects Nigerian banks will be watching developments closely and could have just found a perfect model for financing vehicle loan schemes on a commercial basis.

http://nairametrics.com/uber-may-just-have-presented-nigerian-banks-with-a-sweet-deal/ lalasticlala

.
Am ftc and i didn't even plan it.
Why some dey hustle for am.
Anyway i can tell you how it feels..lol

Hope it is protected against scam

Uber’s model?

For the fact that it worked in S.A is not a yardstick for it
success in Nigeria. Is S.A running TSA policy?

Okay.... We're as well watching!

Adesiji77:


http://nairametrics.com/uber-may-just-have-presented-nigerian-banks-with-a-sweet-deal/ lalasticlala

FTC

Interesting. . .

Uber will be the next big thing if the govt takes it serious, few but not all will be employed..

God bless Nigeria

Summary please.. And in pidgin engrish

This is a long epistle

;Dlol baba is working

Op why are you deceiving us with wrong title, I see no Nigerian bank mentioned in the write up.

You must be related to Lie Mohammed

i'm liking d way articles make FP without much comments. Kinda cool

Some people will come here and say "Bubu is working"
On a serious note, if the plan is replicated in Nigeria, it will create employment and improve taxi service. I pray the new transport minister encourage Uber to implement something similar in Nigeria.

Amechi should better work with Uber and lets know what next in the Ministry of Transportation... Uber Uba, what am i writing?

South Africa again !!!! Dem send una come ?

Fear Bank Loan they are deadly

Nice ones

Trust me if u have ever boarded any uber before u will never want to use
all this 3rd taxi in lagos again. Its a welcome idea and i trust it will work in Naija

joey150:
.
Am ftc and i didn't even plan it.
Why some dey hustle for am.
Anyway i can tell you how it feels..lol

Ok u done see the bank alert. Ask sheun for ur money o, as FTC concern.

which one be Uber again?

Uber lagos should not try this oooo,my people will drive those cars to cotonue to sell or butcher it at ladipo or owode onirin,and there is nothing they can do about it, our credit recovery laws sucks.

With lagos traffic robbery they should look for a way to secure their premium users too.

Hmm

joey150:
.
Am ftc and i didn't even plan it.
Why some dey hustle for am.
Anyway i can tell you how it feels..lol

FTC and no likes....pele o

That's Uberful!
But again... Lack of database and poor road system to a major hindrance to such venture here.
Let's wait and see.

BoiGrammz:
Summary please.. And in pidgin engrish

okay.

freecharles:


FTC and no likes....pele o

bros den dey change the likes with money?? Who e help?

Uber, with lagos traffic and mad drivers ?

I laugh in Swahili.

dason4life:
Uber’s model?

For the fact that it worked in S.A is not a yardstick for it
success in Nigeria. Is S.A running TSA policy?

This is one of the factors why we are where we are today. Self defeat! Why won't it work? What are your thoughts? Uber has been running effectively in Lagos and Abuja and will soon be in PH.

Personally speaking, this is a nice development for our transportation sector.