PYMNTS MonitorEdge May 2024

InDrive Launches Lending Solution for Drivers on Its Rideshare Platform

InDrive Launches Lending Tool for Drivers on Its Platform

InDrive, a global mobility and urban services platform, introduced a new financial services product called inDrive Money.

The offering provides cash loans to drivers operating on its platform in Mexico, aiming to address the financial needs of gig workers who are often excluded by traditional financial institutions, the company said in a Wednesday (Feb. 28) press release.

“I have heard time and again from drivers that it was very difficult to access lending on fair terms,” inDrive founder and CEO Arsen Tomsky said in the release. “Our surveys of drivers show that 68% of respondents in Mexico would be interested in receiving a loan.”

In partnership with an established financial institution, inDrive Money enables drivers in cities across Mexico to access cash loans directly through the inDrive app, according to the release.

The company has also partnered with other institutions to offer credit cards to drivers in Monterrey, Mexico, the release said.

With these services integrated into the inDrive app, drivers can apply for loans, check balances and make repayments as they earn, per the release. Repayments are made as part of the commission that drivers pay to inDrive as they use the app as they normally do.

“Our partnership with Mastercard, R2, Galileo, Giro and others has enabled inDrive to bring our technology and insights to power fairer lending solutions that would otherwise not be available to drivers, who often do not have easily predictable income streams,” Tomsky said in the release.

During the initial trial phase of inDrive Money, 57% of loans were granted to repeat borrowers who had already repaid their first loan, according to the release.

Moving forward, inDrive plans to expand its financial services offering to diversify its business and fuel growth, the release said.

InDrive’s ridesharing platform is active across more than 40 nations and has garnered over 175 million downloads nationwide.

The company aims to provide transparency to both drivers and passengers, Adam Warner, head of U.S. Operations at inDrive, told PYMNTS in an interview posted Feb. 15.

“Making sure that drivers understand exactly what they’re getting paid for the work that they’re doing is very critical in earning the trust of everyone that participates in the gig economy,” Warner said.