The Lagos State Employment Trust Fund, LSETF and Uber, the global ride-sharing platform are partnering to provide access to groundbreaking vehicle finance for Lagos entrepreneurs.
The total offering to Uber Lagos entrepreneurs includes finance at a fixed interest rate of 5% per annum, with a loan period of 36 months. The offer is 15% lower than that of any other financial institution.
The deal is changing the face of access to finance and growing small businesses. The introduction of lower interest rate finance for driver-partners will help them thrive as they run their business on the Uber platform.
Uber has particular relevance in a city such as Lagos, where traffic congestion is an ongoing challenge. Lagos is Nigeria’s economic hub, which makes the challenge increasingly acute for those using the city’s roads. If more people take advantage of ride-sharing services like Uber, there would be less cars on the road and less overall congestion.
For this reason, the Lagos State government has welcomed and supported the platform.
“Lagos state is encouraging the growth of the platform and the support of local entrepreneurs also strengthens a highly-viable transport industry in Lagos,” the General Manager for Uber in West Africa, Ebi Atawodi said.
Ease of purchasing new vehicle
“Uber driver-partners in Lagos will also find it easier to buy their own vehicle. Driver-partners can now buy new cars that are locally-assembled in Nigeria. The partnership between Uber and LSETF has made this process simple. If they qualify for the financing provided by LSETF, Uber entrepreneurs can buy any new locally-assembled car up to a value of N3 million and only need to contribute 5% of the vehicle purchase price when they buy the car,’’ Atawodi explains.
According to Akintunde Oyebode, the Executive Secretary of LSETF, “partnerships like this provide a platform for sustainable job and wealth creation, and demonstrate a seamless collaboration between private capital and Government…The partnership with Uber is proof of Lagos State Government’s willingness to support innovative solutions that solve social problems, in this case, transport, and also provide jobs to its residents.”
Ridesharing trends and a refined automotive industry go hand in hand. Dr. Andrew S. Nevin, Advisory Partner and Chief Economist, PwC Nigeria says, “Already Uber driver-partners have made over a million trips in Nigeria in the last two years. This trend could fast-track Nigeria’s path to becoming an automotive hub potentially boosting sales of new and used vehicles as individuals take advantage of partnering with these companies to gain extra income.”
The Uber and LSETF partnership begins in December with the hopes of expanding it to more Uber partners in the near future.