inDrive has no plan to launch its ‘inDrive.Money’ credit facility for drivers in Nigeria

Despite groanings by e-hailing drivers in Nigeria over reduced earnings and poor finances, a leading ride-hailing company, inDrive, has said that it has no plans to launch its credit service, inDrive.Money in the country.

A company representative disclosed this in a chat with Technext.

This is coming in the wake of inDrive.Money’s successful launch in Peru, in partnership with R2, a Latin American financial technology company specialising in financing for small and medium-sized businesses. The Peru launch marks the fourth market in which the company will launch the product to drive greater financial inclusion for gig economy workers, including drivers and couriers.

With the Peru launch, inDrive.Money now operates in four countries. The others include Mexico, Colombia and Indonesia.

Recall that in January 2024, inDrive announced it was set to provide loans and credit facilities for drivers in specific emerging markets in Africa. Per a Techpoint report, the countries include Nigeria, Kenya, Tanzania, Botswana, Ghana, and Namibia.

The ride-hailing company said the service would help drivers navigate the financial challenges they constantly face, particularly regarding vehicle repairs and overall financial strain.

Asked if emerging countries in Africa should expect the service anytime soon, an inDrive spokesperson said that while there is a strong potential for it in Nigeria, there are no plans for that yet.

“While inDrive does operate in Nigeria, inDrive.Money’s services are still mainly focused on Latin America. They see great potential in Nigeria, but they have not yet made any plans to enter the market,” the spokesperson said.

inDrive is diversifying beyond ride-hailing with inDrive.Money

inDrive said the expansion into financial services is part of its broader strategy to diversify its offering beyond ride-hailing. It is also part of a plan to transform into a multi-service platform.

The company said that beyond contributing to revenue diversification, the service will play a key role in increasing driver loyalty and retention and fueling higher Gross Merchandise Value (GMV), which represents the total value of all rides or deliveries facilitated through a platform before any deductions like fees or discounts.

Since its launch, inDrive.Money has facilitated the issuance of more than 100,000 loans across its markets of operation, and its lending volume continues to grow at pace, underscoring strong demand.

Speaking about the impact the fintech service is expected to have, the President of inDrive, Mark Loughran, said it was going to empower drivers with fair choices.

“At inDrive, we believe in empowering people with fair choices, and financial inclusion is a natural extension of this mission. For many of our drivers and couriers, income from the platform is essential for their livelihoods. We therefore recognise both the responsibility and the opportunity to create a meaningful impact. These individuals are not just service providers – they are entrepreneurs managing their businesses,” he said.

He also said with the inDrive.Money service, the company is providing greater financial security and flexibility, ensuring that urgent expenses don’t disrupt the work of drivers or their long-term plans. This allows them to focus on growth with confidence, knowing that they have the security and support to thrive.

Ride-hailing apps delving into financial services

Ride-hailing companies are increasingly offering financial services in low-income countries. These services often come in the form of credits and loans deployed towards helping them meet little everyday operational expenses.

Recall that in May 2024, another ride-hailing company, Bolt, began offering short-term loans to drivers on its platform. The development, carried out in partnership with credit technology company, Advancly, aims to help drivers receive up-front earnings and boost productivity.

A Bolt spokesperson told Technext, at that time, that the loan scheme is based on various ‘Reward Levels’ as drivers have to be on one of several reward levels to be eligible. The reward levels include either the Silver, Gold or Platinum reward levels.

The higher a driver’s level, the higher the amount of money they can apply to borrow.

Uber is yet to provide a loan and credit option for its drivers. However, in May 2024, the company introduced the Flex Pay feature, which enables drivers across the country to access their earnings more frequently through their mobile wallets.

Thus, rather than receiving their earnings once a week, drivers will now be able to opt in to receive their earnings every day, enabling them to meet their obligations timeously.

So, if inDrive decides to bring its credit facility into the Nigerian market, it would be in good company. It is only left to be seen how well these financial solutions do in the Nigerian market.

See also: Simpliride launches with zero commission for drivers in Lagos, Abuja, PH