Uber and LSETF partner to provide Access to Groundbreaking Vehicle Finance for Lagos Entrepreneurs

Uber is changing the way Lagos driver-partners access finance and grow their small businesses. The global ride-sharing platform has partnered with the Lagos State Employment Trust Fund (LSETF) (http://LSETF.ng) who will provide access to finance for budding transport entrepreneurs at just 5% per annum. This is 15% lower than any other financial institution.

Access to affordable finance is critical to the success of any entrepreneur, as it frees up the cash flow for them to focus on growing their business. The introduction of finance at a lower interest rate for driver-partners will help them thrive as they run their business on the Uber platform.

The option to purchase locally made vehicles gives entrepreneurs the opportunity to obtain the assets required to grow their business and contributes to the growth of the local economy. Local automotive production is a priority across the country, which has been emphasised in the Nigeria Automotive Industry Development Plan (NAIDP). Nigeria is a promising automotive hub, given its large economy, growing urban population and a targeted drive by government to grow the industry.

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. Lagos driver-partners will be afforded the opportunity to purchase a vehicle to the value of up to N3 million, with a 5% deposit required. Stallion motors are offering both the Hyundai Grand Xcent (N3m) and Hyundai i10 (N2.7m) for this deal - both cars are locally assembled and are in line with the NAIDP.

Ebi Atawodi, General Manager for Uber in West Africa says, “We are encouraged by the Lagos State’s commitment to ridesharing platforms like Uber. Their support of local entrepreneurs not only fosters the growth of sustainable businesses, but strengthens a highly-viable transport industry in Lagos.”

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 by Stallion Motors (Hyundai i10 and Hyundai Grand Xcent). 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.

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.”