Zopa partners with Uber to finance new cars
Peer-to-peer lending pioneer Zopa has partnered with the world’s leading on-demand car service Uber to provide finance to its London based self-employed drivers.
This new partnership will help support Uber drivers that wish to transition from renting a licensed vehicle to owning their own car by the end of the loan agreement. The partnership has the potential to help thousands of Uber drivers reduce their costs each month by replacing rental fees with a lower cost monthly repayment that ultimately results in vehicle ownership.
Loans will be secured against the new cars with rates based on the driver’s credit risk. Loan rates will start from 6.9% APR over 3-4 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 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.
This innovative market-place deal is one of the first of its kind in the UK to go live between a P2P lending company and the Uber platform. Zopa and Uber believe this partnership is a great example of how technologically disruptive businesses can work together to provide additional value to partner drivers. This finance option will provide Uber drivers with a simple, fast and great value loan to help finance a new vehicle.
Giles Andrews, CEO and co-founder of Zopa, added: “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.”
“Zopa and Uber are two rapidly growing business and this deal is aimed at accelerating the growth of the two companies in the UK. As Zopa becomes a mainstream service for consumers, we look forward to helping hard working people fulfil their goals of owning their vehicles and keeping more of their income in the process.”
Fraser Robinson, Business Development at Uber said, “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.”