Tata Group and Uber tie up means drivers will be able to buy more fuel efficient cars and also gain financing solutions
Tata and Uber have come together to offer solutions for Uber driver partners with which they can own the vehicles. Uber drivers will be able to buy more fuel efficient cars and also gain financing solutions from Tata’s financial services i.e. Tata AIG, Tata Capital and Tata Motors Finance.
During this announcement, Member-Group Executive Council and Group Head for Business Development and Public Affairs at Tata Sons, Madhu Kannan, said that along with these supports, Tata Business Support Services will also be available for the drivers who want to use the new vehicle solution programme for operational support.
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This initiative will be offered pan-India while the first of it will be rolled out in Hyderabad and within a year it will extend to other areas as well. Over the year, this partnership will enable 20,000 drivers to own their own vehicles and begin their own business using the Uber Platform. Last year as well, Tata Group partnered with Uber where Tata Opportunity Fund invested in the latter.
Talking on the occasion, Head of Business, Uber Asia, Eric Alexander, said that the drivers are very happy and they value the independence which is offered by Uber. He further said that with the Tata Group, things will be made easier for the drivers as they will be able to afford their own cars and thereby it’ll encourage micro entrepreneurship in India.
Further, this is one of the first of its kinds vehicle sale and financing arrangement that has been made between two companies. The deal between the two companies was a $160 million agreement. Advising the companies were Shardul Amarchand Mangaldas & Co. along with Ernest & Young as well as AZB & Partners.