Uber Egypt and Dryve, the first peer-to-peer car sharing platform in the Middle East, announced on Monday the launch of a strategic partnership to provide access to vehicles using technology for those who wish to drive for Uber.
The partnership is another step towards Uber’s ongoing efforts to support drivers by removing barriers to entry and enabling Egyptians to better access the economic benefits of flexible work through the Uber app, Uber said in a statement.
“Our partnership with Dryve represents our mutual commitment to innovate to ensure drivers and vehicle owners are supported and empowered by technology, and can supplement their incomes seamlessly with part-time work,” Ahmad Hammouda, head of Uber Egypt said at the signing ceremony.
“Our statistics show that the Egyptian market needs more flexible work opportunities with the fewest possible barriers to entry, as part-timers currently contribute to 70 percent of the active driver base. Connecting drivers to vehicles for short term rentals is a further step towards our goal to make the economic empowerment provided by the ride-sharing industry more accessible,” he added.
Dryve aims to revolutionise the rental car market in Egypt, a market that is currently fragmented with more than 75 percent of the transactions taking place in the informal economy. The Dryve app allows car owners to rent out their vehicles that would otherwise be unused, contributing to Uber’s goal of complementing the existing transportation network in Egypt with the aim of further reducing congestion in cities where there is an overabundance of unused parked cars clogging the streets.
“This mutually beneficial partnership enables Dryve to tap into Uber's massive pool of demand, while in turn providing an innovative solution to address the challenge of drivers’ accessing vehicles by unlocking a vast and uncharted market,” said Gamal Aboul Enein, CEO and Co-Founder of Dryve.
To further support the wellbeing of those on the road, Dryve has also partnered with AXA -- the world’s leading insurance company and introduced to the region the first of its kind ‘PAYD’ (Pay as You Drive) insurance policy and first fully digitalised claims process, which insures all listed vehicles during Dryve rentals.
Uber is present in 11 cities in Egypt; Greater Cairo, Alexandria, Mansoura, Tanta, Damanhur, Zagazig, Hurghada, Damietta, Ismailia, Port Said, and El Suez, in addition to the Eastern Province with plans for expansion across the region.
Last week, Uber said it will spend $3.1 billion to acquire Middle East rival Careem, buying dominance in a competitive region ahead of a hotly anticipated initial public offering.
The long-expected agreement ends more than nine months of start-and-stop negotiations between the two companies and hands Uber a much-needed victory after a series of overseas divestments.
The deal is expected to close in the first quarter of 2020, the companies said, meaning it will not be reflected in Uber’s first couple of quarterly earnings releases as a public company, although it will likely be disclosed in a public IPO filing. Uber will kick of its IPO next month and is expected to receive a valuation of at least $100 billion.