News

inDrive income-based loans for drivers in Colombia with R2

Tuesday 1 October 2024 08:45 CET | News

Global mobility app inDrive has launched inDrive Money, a financial product in Colombia that offers drivers income-based loans via the app in partnership with fintech R2.

 

inDrive Money aims to enhance financial inclusion for drivers operating on inDrive’s platform. Currently available in 17 cities across Colombia, the new product offers income-based financing to drivers, enabling them to access cash loans of up to USD 240 for a flexible period of 3 to 5 months, depending on their activity on the inDrive app.

inDrive launches inDrive Money in Colombia

Automated loan repayments to simplify finances

Because of its full integration with the inDrive app, drivers can easily apply for loans, check balances, and make repayments as they earn from trips. Loan payments are automatically deducted alongside the inDrive commission on each ride, enabling drivers to seamlessly manage their finances while continuing to use the app as normal.

inDrive Money first launched in Mexico in February 2024, with the aim of improving financial inclusion for gig economy workers who have historically been underserved by traditional financial institutions. inDrive’s diversification into financial services aligns with the company’s overarching mission to challenge injustice by offering more equitable solutions and ensuring freedom of choice for both service users and service providers.

Responding to user’s needs

A recent survey of inDrive drivers revealed that 72% would recommend inDrive Money to their colleagues and friends. When asked about their reasons for taking out a loan, 32% cited ‘vehicle maintenance or repair’ as the top reason, followed by ‘covering personal expenses’ at 28%. Drivers highlighted key benefits of the service, including financial support during challenging times, transparent information, and the convenience of accessing loans and making payments directly through the app.

Officials from inDrive said inDrive Money is an example of the mutual trust between them and the drivers and their commitment to challenging injustice. They know that it can be very difficult to access traditional banking on fair terms. Thanks to inDrive Money, drivers will get an opportunity to access loans in their app, enabling them to invest in their business or improve their economic well-being more generally with the support of our partner R2.

Representatives from R2 added that they are happy to collaborate with inDrive in providing loans to their drivers across more than 17 cities in Colombia. This move follows the successful implementation of a similar programme in Mexico. Their embedded solution within the inDrive platform allows for quick, easy, and seamless access to capital, advancing financial inclusion throughout the country. Instead of relying on traditional credit history, they evaluate drivers based on their activity within the inDrive platform, rewarding their positive driving behaviour.


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Keywords: financial inclusion, lending, financing , partnership, banking
Categories: Banking & Fintech
Companies: inDrive, R2
Countries: Colombia
This article is part of category

Banking & Fintech

inDrive

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R2

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