rtmark
LearnBonds.com

Uber Drivers Get Lease Deal From Toyota Motor Corp (NYSE:TM)

Uber

Uber and Toyota Motor Corp (ADR) have formed a partnership to create new flexible leasing options for the ridesharing company’s drivers. Following the announcement, Toyota shares are trading in the green on Wednesday.

Leasing Program On Trial

The Uber and Toyota will offer the program on a trial basis in countries where ride-sharing is growing. The partnership will take various factors into account such as regulations, business conditions, and customer needs.

Uber

Drivers will be to purchase vehicles on lease from Toyota Financial Services. For the repayment for the loan, they can use earnings generated from the Uber network. “The leasing period will be flexible and based on driver needs,” Toyota said in a statement.

The partnership hopes to provide new leasing options by the second half of 2016, Automotive News reported, citing a spokesman.

“Ridesharing has huge potential in terms of shaping the future of mobility. Through this collaboration with Uber, we would like to explore new ways of delivering secure, convenient and attractive mobility services to customers,” stated Shigeki Tomoyama, senior managing officer of Toyota Motor and president of the Connected Company.

Toyota Motor Corp (ADR) and Uber plan to collaborate on developing in-car apps and sharing their research. The partners will also cooperate in the establishing of a special fleet program to sell Toyota and Lexus vehicles to Uber drivers.

Uber Problem in China

The U.S.-based ride-sharing company seems optimistic about its business in China, which is a difficult market due to lack of rules for the ride-hailing sector. It is expected that China will give ride-hailing businesses a legal status this year. There are some reports that Chinese police are cracking down on taxi hailing drivers. Currently, it is against the law for a private car, such as one driven by an Uber driver, to be used for a paid-for ride in China, Motherboard reported.

Apple Inc.  is also betting on the ride-sharing business. The tech giant announced a $1 billion investment in Didi Chuxing, a ride-hailing service similar to Uber operating in China. Alphabet Inc , mother to Google, is also looking to get a foothold in the ride-sharing business. The firm recently unveiled the pilot program of its ride-sharing app with a pilot program for folks in the San Francisco area. The new program will see several thousand workers pooling a ride to and from work using the Waze navigation app.

In other Uber news, Keith Chen of the company’s research team revealed that users are more likely to pay surge pricing if their phone battery is low. When the demand for Uber rides surpasses the supply of vehicles, surge pricing occurs at a certain multiplier such as 2x or 3x, Forbes reported.

Keith Chen, who leads economic research at Uber, recently said that the ride-sharing company’s users are more likely to pay for surge pricing if the battery is low on their phones.

Shares of Toyota Motor Corp (ADR) were trading up 1.98% as of 2:30PM EDT.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar
X

Leading Social Trading Platform with 0% Commission

Leading Social Trading Platform with 0% Commission

Leading Social Trading Platform with 0% Commission

TRADE WITH ETORO

75% of investors lose money when trading CFDs.

Leading Social Trading Platform with 0% Commission
TRADE WITH ETORO

75% of investors lose money when trading CFDs.

HTML Snippets Powered By : XYZScripts.com