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Uber strikes deal to lower down costs of car ownership to get more drivers on its platform

November 25
4:41 AM 2013

Ride solution service Uber, is aggressively pushing for more drivers on the road and at the same time, improve the experience to all users of its platform. With its current reach of more than 50 markets around the world, it now faces a problem - how to keep up with demands from key cities that needs more drivers.

With that problem at hand, it has ultimately partnered with auto financing providers as well as a couple of auto manufacturers to help reduce the cost of a new car ownership for Uber platform drivers.

According to Uber Chief Executive Travis Kalanick, the number of rides requested by its users have continued to accelerate so much so that it keeps on increasing for more than 20% month over month in each of the last two months. Even in markets that it has served for years.

Uber proposes a solution, which was to incite more drivers on the road by lowering down costs for car ownership.

Kalanick said, "We need to get hundreds of thousands of cars on the road."

Uber wanted to qualify drivers that will be approved for better rates as the system can already predict the driver income . This solution seemed perfect for financing companies, as a fully utilized vehicle on Uber grosses more than USD 100,000 a year.

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