Mobile lending app broadens scope with Uber partnership

Mobile lending app, Branch inked its partnership with Uber to enable Uber drivers access exclusive loan package.

The partnership’s objective is to help existing Uber drivers become driver-partners and own and grow their businesses.

Under the partnership, high performing Uber drivers will be able to leverage their data on the ride-hailing app to gain access to the new loan product on the Branch app.

To qualify for the loan a driver will need to have achieved is an Uber app rating of 4.6* and have completed at least 500 trips to be eligible for the facility.  Qualifying drivers will have access to KES. 30,000 as a starter loan, payable within 6 months at a fee of Ksh 2,175, which is equivalent to a 1.2% monthly interest rate.

Speaking during the launch ceremony, Kagure Wamunyu, Uber Kenya’s Operations Lead said the partnership, which is part of Uber’s vehicle solutions programme, follows similar ones that the technology firm signed this year with Sidian Bank in Kenya and WesBank in South Africa.

“Uber is focussed on increasing economic opportunities. We are excited about this partnership which will enable existing drivers that are leasing their cars from partners to become driver-partners and owners of their businesses. We are excited that through Branch, driver-partners will have access to convenient and affordable credit to advance their businesses in just a few taps,” said Wamunyu.

“Here in Kenya, formal financial data is not widespread, and therefore many lenders find it difficult to assess risk and extend enough credit to meet demand.” commented Daniel Szlapak, Director of Africa for Branch,

“At Branch, we are using alternative data sources and proprietary machine learning technology to overcome this hurdle and make accurate lending decisions. The Uber drivers can take the Kshs. 30, 000 loan twice at an interest rate of 1.2% and after that we will evaluate what is the pricing for the next level of the ladder for the Uber drivers. We need to see what is the default rate what is the demand then we can determine the price for the next level,” concluded Daniel.