Taxify has entered into a new partnership with Renault Kenya and Stanbic Bank to offer vehicle purchase financing for its drivers in Kenya.
The partnership is expected to see a number of individual drivers benefit 100 percent financing from Stanbic Bank. As part of the agreement, Renault Kenya, a sub-brand of Simba Corporation, will provide Renault KWIDS with engine capacity of 800cc and fuel efficiency of 24km/litre. Additionally, the drivers will be able to purchase Renault KWID vehicles from Renault Kenya.
The deal stipulates that the vehicle is financed at 0 percent deposit and will be repayable within 36 months. Additionally, the drivers will receive a 25 percent discount on part replacements, 20 percent discount on labour and AA rescue to all drivers. Taxify will vet and pre-qualify drivers who have met various criterion including positive driver ratings of 4.7 and above.
Taxify aims to use this deal to increase its fleet locally and attract more users to its platform in the competitive ride-hailing service market. It would as well help its driver-partners buy new cars without upfront costs.
This initiative is also part of the company’s continuous effort to meet growing demand alongside competition in the taxi industry. Rival Uber and Stanbic bank rolled out a similar initiative in Kenya two years ago, offering access to a loan facility to Uber drivers looking to own taxis. Drivers benefiting from the Vehicle Solutions Programme will be required to repay the loan, with a 14 percent interest per annum, within a period of three years. Following positive reviews of the impact of Uber’s loan programme, which records an impressive success rate, it is safe to conclude that this new deal from Taxify would definitely score remarkable achievements.
Speaking at the partnership launch event Alex Mwaura, Taxify Country Manager, Kenya explained that this deal will not only help drivers access a feasible and cost-effective way to own cars but also offer an easier way to provide income for themselves and their families.
“We always strive to ensure that we meet the growing need for affordable and reliable transportation for riders, whilst creating sustainable jobs and enabling drivers to boost their source of income. We understand the challenges presented to most of the drivers on our platform. Purchasing a car upfront can take time and months of investment and in most cases, drivers opt to lease cars,” he added.
Under the partnership, drivers will also benefit from product training and wealth management courses. They will also have the option of selecting either automatic or manual versions of the Renault KWID.