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Bank to Auction Uber Chap Chaps to Recover Loans

Peter Musila 2 years ago

Stanbic Bank has put several vehicles belonging to mobile taxi Uber up for sale after the owners were unable to service their loans.

According to the bank, their decision to put the 13 Suzuki altos up for sale was the only option in a bid to recover loans advances.

In a statement, Stanbic Bank recovery officer Lillian Wangechi made a confirmation that the vehicles belonged to the drivers working under Uber and were unable to service their loans for the cars they had purchased 2018 and early this year.

“The bank is only trying to recover its money. The bank has set a committee to discuss on car prices after closing offer date on April 4th,” Wangechi said.

The move will be a blow to a partnership made early in 2018 between Uber Kenya and local CMC Motors, which was the sole distributor of the models to import the small, low fuel consumption vehicles for the cheaper Uber Chap Chap service.

The drivers were buying the cars at a subsidized cost of Sh835,000 with the Bank confirming that they had advanced loans of up to 350 taxi drivers to operate Uber services in September 2018.

Another bank involved in the deal was Sidian Bank which financed over 150 Suzuki Alto cars with their loan attracting 14 percent interest per year, repayable within three years.

Uber Chap Chap was introduced in February 2018 to add into existing offers UberX and UserSelect which chargers’ higher rates.

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