InDrive set to offer credit and loans to drivers in Ghana, Kenya, and Nigeria

January 5, 2024 Samson Ayodeji

The multinational e-hailing company InDrive, which is present in 47 countries, plans to expand into the financial industry to offer more services. CEO Arsen Tomsky started the business to provide financial goods, such as small loans, to drivers in developing nations.

The project will mainly target nations like Nigeria, Kenya, Tanzania, Botswana, Ghana, and Namibia because of its dedication to ensuring long-term financial security for its large driver base. The ride-hailing service in these areas is aware of the financial difficulties drivers encounter, especially with auto repairs and general financial hardship.

According to TechPoint, InDrive’s Group President, Mark Loughran, expressed the company’s interest in investigating financial services catered to the particular requirements of drivers in developing nations. InDrive is currently testing several concepts and looking to form strategic alliances to make it easier for drivers and delivery riders who need financial support to get loans.

Venture into uncharted territory: InDrive’s foray into financial services for drivers involved in ride-hailing

Although it is not the first, the ride-hailing firm is one of the most recent to investigate financial services for delivery drivers and ride-hailing services. Uber and Moove, two local mobility fintechs in Nigeria, work together to finance cars, and Max has a similar partnership with Bolt.

This ride-sharing business, which was formerly known as inDriver, was founded in June 2013 in Russia and moved its main office to the US in 2023. Despite this change, the ride-hailing company still operates mostly in developing regions of Latin America, Asia, and Africa.

Unlike rivals such as Uber and Lyft, the company follows a different ride-hailing business model where customers bargain over the price of their journeys rather than paying a set amount. InDrive launched a $100 million initiative to fund startups and companies in developing economies in the fourth quarter of 2023.

The ride-hailing company unveiled a novel financing instrument in February 2023 to raise $150 million, with repayment contingent on the business’s success. With this unorthodox loan round, the ride-hailing startup can have repayment flexibility linked to income generated over time.

The most recent ride-hailing service to lend money to drivers is Indrive.

There are several advantages for drivers in African nations who use ride-hailing services that provide loans and credit facilities. First off, by overcoming the obstacles associated with traditional banking, this strategy encourages financial inclusion by giving drivers who were previously underserved access to financial services.

Additionally, these loans take care of important requirements like auto maintenance, enabling drivers to maintain their cars in top shape and enhancing both operational effectiveness and safety.

The economic stability brought about by such financial support has an effect that extends beyond specific drivers. When drivers with access to credit facilities actively participate in a range of companies and services, it boosts local economies. Communities benefit economically overall from this knock-on effect.

Lending money also opens doors for business growth since drivers can buy new cars or think about growing their operations. In addition to helping individual drivers, this could lead to the creation of jobs in the neighborhood.

Author

Samson Ayodeji

I am literally obsessed with technology. I love writing about the latest news in technology in different markets, segments and sectors across the world.

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