Uber and Nacita AutoCare announced on Wednesday the launch of the first “Rent-to-Own” vehicle solutions programme in the Middle East and Africa in partnership with the Egyptian Ministry of Investment and International Cooperation.
The programme offers Uber drivers the opportunity to lease vehicles at a 5 percent interest rate and the option to own cars after 36 months, after settling the remaining 30 percent of the initial vehicle cost. It also provides participants with full AXA insurance coverage and 24-hour support at 15 Nacita Autocare branches in Cairo and Alexandria.
The ministry has allocated EGP 45 million in funding for the programme from the Saudi Fund for Development. The project is the result of nearly a year’s research to find a vehicle solutions product that would fit the local market.
The programme should create more economic opportunities for Uber drivers in Egypt by further reducing barriers to entry and streamlining the rental process for drivers, according to a press statement by Uber.
The innovative partnership will have Enmaa offer its leasing services through Nacita, who will serve as a one-stop-shop for drivers; from support in the application process to the final handing over of the vehicle.
“The Rent-to-Own programme is designed to build a more sustainable, flexible and convenient working model for Uber drivers, one that will make car ownership today a possible reality, given challenging economic conditions and traditional loan terms and conditions,” said Nadim Nagui, Uber Regional Vehicle Solutions Manager.
“What is unique about this programme is that in addition to a financial institution we also partnered with Nacita – which engages with drivers on a regular basis – to streamline the process, helping them better understand what they are signing up for and what is expected. This has already resulted in a more successful programme for more drivers," he added.
“Egypt is currently one of Uber's fastest growing markets in the world. Growth is capped by the lack of vehicles available in the Egyptian market, especially given the high interest rates,” said Karim Abadir, CEO of Nacita Autocare.
“Nacita is proud to be the chosen operator for the Rent-to-Own program, having demonstrated our entrepreneurial and flexible approach, premises with adequate space and tools for inspection and on-site maintenance, and facilities for fleet managers, controllers and driver liaison staff," he added.
The Rent-to-Own programme will be financed by Enmaa Ijara Company and managed by Nacita AutoCare. It is currently open to Uber drivers who have completed at least 1,500 trips and have a very high rating from clients.
Drivers can apply online and Nacita will follow through for the application, qualification, interview, approval and car delivery process. A total of 20 vehicles are being delivered before the end of August 2018.
Rasha Hegazy, head of the credit administration department at Enmaa Ijara Company, said Enmaa is dedicating a full team to work on the project to facilitate the process and ensure efficiency.
The Rent-to-Own initiative in Egypt is part of Uber Vehicle Solutions, and is rolling out for the first time in the region.