Taxi hailing service – taxify has inked a deal that will see drivers on its platform with a higher rating qualify to own their own cars through 100 percent financing from Stanbic bank. Drivers will be able to purchase Renault KWID cars from Simba Corporation through a financing arrangement that will allow them repay loans within a period of 36 months. The agreement will also extent to include a 25 percent discount on parts replacement, 20 percent discount on labor related charges as well as AA rescue service in case of emergency.
While speaking at the launch event, Taxify’s country manager to Kenya Mr. Alex Mwaura said the company was always striving to meet growing needs of riders to access reliable transportation while at the same time creating jobs for drivers. He also acknowledged various challenges experienced by drivers on its platform. For instance, owning a car upfront for drivers can take some serious investments and savings; hence, most drivers prefer leasing vehicles instead. Therefore, this initiative will enable drivers not only access a feasible and cost-effective way to own cars, but also offer an easier way to provide income for themselves and their families as well, he added.
The Renault KWID cars and Suzuki Alto are favored by drivers as their engine capacity is not as demanding, which allows them maximize on profits by reducing fuel costs. The KWID for example has an engine capacity of 800cc and is estimated to consume an approximate fuel efficiency of 24km per liter. KWID was first unveiled in Kenya in 2016.
Competition in the taxi industry has become more stiff since major providers such as Uber and Little launched in the country; Uber for example has had a similar initiative for drivers on its platform since 2017. Just recently, Uber unveiled UberASSIST to serve the disabled and elderly riders. There are several advantages of owning a car with these taxi services rather than leasing, Uber partners for example impose a daily target that drivers must meet. This is a bummer especially on not so good days, which means drivers sometimes have to dig in their own pockets to pay up. Drivers literally have to split their earnings with the company (which takes a percentage) as well as car owners.
How Taxify Drivers Can Own a Renault KWID car Through 100 percent Stanbic Bank Financing
- Drivers must have a 4.7-star rating or better
- If you meet the required rating, you can sign up for the initiative which will attract monthly instalments of Sh43,000 inclusive of insurance for the vehicles valued at Sh1.2 million for the manual version and Sh1.1 million for the automatic type
- And of course drivers must have been using Taxify’s taxi hailing service