India’s largest, $100Bn+ in revenues business conglomerate Tata companies, and Uber today announced a new partnership to offer a comprehensive vehicle purchase and ownership solution to driver partners on the Uber platform. This may also give a boost to car leasing program of Uber aimed towards increasing Uber cars on roads.
Under the new partnership, drivers, and car owners on Uber can buy fuel efficient cars like the Indica and Indigo from Tata Motors.
Tata Capital Financial Services and Tata Motors Finance will offer customized financing solutions to help them buy these cars. They can also avail affordable insurance from Tata AIG. Last year, Tata Opportunities Fund had invested between $75 Million-$100 Million in Uber, making the newest tie-up, even more relevant.
Announcing the new initiative, Madhu Kannan, Member-Group Executive Council, and Group Head for business development and public affairs for Tata Sons, said,
We are delighted to take our relationship with Uber forward, leveraging its technology expertise and Tata companies’ capabilities and reach.
These drivers will also get operational support from Tata Business Support Services to use this new vehicle solutions program.
Promoting micro-entrepreneurship in India
Uber will launch this initiative all over India, beginning with Hyderabad. Over the next one year, the initiative endeavors to fuel micro-entrepreneurship across India. It will by enable over 20,000 drivers to start their own business on the platform.
Talking about these new initiatives in India to promote micro-entrepreneurship, Eric Alexander, Head of Business for Uber Asia said,
Uber has made it possible for millions of people in India to get a ride and work at the push of a button. It’s clear from talking to drivers how much they value their flexibility and independence. It’s why we are excited to work with Tata to help make it easier and more affordable for drivers to get on the road–increasing micro-entrepreneurship in India.
Boost to Car Leasing Program of Uber
Then there is of course a benefit to Uber’s own car-leasing program. The US-cab hailing giant had launched its car leasing program in India last year. And this move will further support the program. It recently invested 43 crores in car leasing firm, Xchange Leasing to boost the program.
Under the program, Uber offers vehicles to interested drivers on a pre-decided security deposit and monthly lease. Drivers have the option to own the car after three years making it an attractive choice for drivers looking to have their own car.
Now this new initiative with Tata will further attract drivers and owners by offering them easy finance and insurance from Tata group on brand new cars.