Tata and Uber to help drivers turn micro-entrepreneurs

Uber, which provides e-commerce services for car hire to more than 476 cities worldwide, announced a new partnership with Tata Companies. The partnership will offer a comprehensive vehicle purchase and ownership solution to driver partners on the Uber platform.

Under the new partnership, drivers, and car owners on Uber can buy fuel efficient cars like the Indica and Indigo from Tata Motors, which will give a boost to car leasing program of Uber - which recently invested 43 crores - aimed towards increasing Uber cars on roads.

Tata Capital Financial Services and Tata Motors Finance will offer customized financing solutions to help them buy these cars and avail affordable insurance from Tata AIG. These drivers will also get operational support from Tata Business Support Services to use this new vehicle solutions program.

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."

Beginning with Hyderabad, Uber will launch this initiative all over India. The firm believes the new initiative will enable over 20,000 drivers to start their own business on the platform.

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."

Uber also offers vehicles to interested drivers on a pre-decided security deposit and monthly lease, under the car leasing program. Drivers have the option to own the car after three years making it an attractive choice for drivers looking to have their own car. With the new initiative with Tata, Uber will further attract drivers and owners by offering them easy finance and insurance from Tata group on brand new cars.

Last year, Tata Opportunities Fund had invested between $75 Million-$100 Million in Uber, making the newest tie-up, even more relevant.