Indrive To Offer Financial Services To Drivers In Developing Markets
In a significant move to bolster financial support for drivers in underserved areas, e-hailing company inDrive will begin providing financial services, emphasizing small loans for drivers in developing regions. The initiative is set to enhance the long-term financial stability for the company’s growing driver community. inDrive operates across 47 countries and targets drivers in nations such as Nigeria, Kenya, Tanzania, Botswana, Ghana, and Namibia, where financial instability or strain is common due to vehicle repair costs and other factors.
Arsen Tomsky, the CEO and founder, is steering inDrive towards catering to the specific needs of drivers in developing countries, many of whom lack financial security. Group President Mark Loughran expressed that inDrive is currently exploring partnerships with various stakeholders to facilitate these loans. They are aware of the inherent challenge in providing loans to gig workers who typically do not possess bankability or a formal credit history. Nonetheless, inDrive is dedicated to finding effective ways to meet this challenge and support its drivers.
Although inDrive joins the likes of other companies offering financial services to the ride-hailing and delivery sectors, it isn’t the pioneer in this arena. In Nigeria, mobility fintech Moove has forged a similar path by partnering with Uber to assist drivers with vehicle financing, and Max maintains a partnership with Bolt. Despite relocating its headquarters to the United States in 2023, inDrive, originally known as inDriver, finds the majority of its business in developing markets throughout Africa, Asia, and Latin America since its founding in Russia back in June 2013.
Distinguishing itself from competitors like Uber and Lyft, inDrive employs a unique ride-hailing model that forgoes fixed pricing, instead allowing passengers the liberty to negotiate their fares. In the latter part of 2023, inDrive initiated a funding scheme, dedicating $100 million to invest in startups and businesses within emerging markets. Additionally, Techpoint Digest provides subscribers with engaging rundowns of the latest happenings in African and global tech—straight to their inboxes.
February 2023 saw the launch of a groundbreaking debt instrument by inDrive, aiming to raise $150 million. The company’s innovative approach relies on a performance-based repayment plan, where the amount of profit generated over time influences repayment schedules. This debt round uniquely offers repayment terms that flexibly adjust to the financial success of the ride-hailing platform.
