Financing 100,000 Entrepreneurs
Last week Uber rolled into our 60th city – Moscow. It was Cali, Tokyo and Montreal the week prior. Jacksonville and Abu Dhabi the week before that. Our global growth is happening fast. But not only are we launching new cities every week, the demand for Uber within each city is also climbing quickly. That trajectory has been particularly remarkable over the past year:
- Global growth greater than 20% per month in each of the last two months
- Many cities already generating more than $100mm/year
This kind of expansion means hundreds of thousands more cars must come onto the Uber system. So, in true Uber fashion, we’re finding innovative ways to power billions of dollars in car purchases. Today, we are launching the pilot of a financial platform – initially available in San Francisco, Dallas, Chicago, New York, Philadelphia and Boston – that will significantly reduce drivers’ monthly car payments, help partners previously unable to obtain financing and get more cars on the road more quickly. Uber is all about moving people, and with this financing platform we look forward to doing that for 100,000 transportation entrepreneurs and their millions of Uber customers.
Uber is partnering with auto manufacturers – GM and Toyota – and leading financial institutions to reduce operating costs for drivers and get cars on the road faster. The key to this new platform? Uber partner-drivers have a robust, reliable cash flow through the Uber platform – every fully utilized car on the Uber system grosses over $100,000/year. That kind of cash flow lowers the risk of financing drivers and means better access to cheaper credit than otherwise available on the open market.
The earning potential of a driver on the Uber platform is unmatched across the industry, and Uber’s growth and expansion mean those earnings will continue for years to come. This program is the first in a series of steps that will help Uber scale in existing and new cities. By streamlining capital investments for existing and would-be drivers, this program also brings the Uber opportunity of turnkey entrepreneurship within reach to even more drivers across the country.
We have developed a new pilot program – Xchange Leasing – which is a leasing option administered by an Uber subsidiary and designed to fit with the flexibility that drivers value most. The Xchange lease is one of a kind, and offers value that traditional auto leases do not provide. Unlike most multi-year leases that have high fees for early termination, drivers who participate in Xchange for at least 30 days will be able to return the car with only two weeks notice, and limited additional costs. The program allows for unlimited mileage and the option to lease a used car, with routine maintenance also included.
A new report conducted in partnership with Mothers Against Drunk Driving (MADD) reveals that when empowered with more transportation options like Uber, people are making better choices that save lives.
New technologies are creating opportunities no one could have imagined. To understand Uber’s place in that trend, we commissioned a survey of our driver-partners and put together a comprehensive analysis.