Peer to peer lender SocietyOne lets Uber users drive to pay off their car loan

Peer to peer lender SocietyOne has teamed up with Uber to provide secured car loans to drivers registered with the ride-sharing platform.

Uber Australia’s CEO, David Rothrsheim was quoted in the Brisbane Times this morning about the new partnership.

"You have SocietyOne coming into the market saying if you drive one night a week and cover all your payments through Uber, you can now own a car," Rothrsheim said. 

Uber drivers will be charged an initial $250 upfront fee to take out a loan with SocietyOne, which rivals the licensing fees of $22,703 taxi drivers must pay for a regular taxi licence in metropolitan areas.

A good credit rating will get Uber drivers a lower interest rate with SocietyOne. On the Uber section of the website, SocietyOne said they are providing car loans for cars worth $5,000-$35,000. Interest rates for these personal loans range from 6.45%-12.64%, depending on the borrower's credit rating.

RELATED: Peer to peer lending explained

This opportunity for Uber drivers wanting to buy a new car comes as the law is still catching up to the ride-sharing industry in its infancy. Only last week, a Melbourne court charged an Uber driver for driving a commercial vehicle without a licence. ABC online recently did a fact checking piece which found that the Uber industry is treading a fine line with the legal requirements for ride share services.

Just this morning on 774 ABC Radio in Melbourne, Crikey Journalist Josh Taylor echoed this sentiment.

“If I catch an #Uber, am I breaking the law? "No, it's just the drivers who are in breach of the law" @joshgnosis #AliMoore,” ABC tweeted this morning to quote the journalist. 

But the Uber Australia CEO is more positive about the future of Uber and SocietyOne’s new car loan scheme. David Rohrsheim was quoted in the Brisbane Times as saying the peer to peer lender is just responding to what consumers want.

"SocietyOne recognises a growing sector of Australians want to work flexibly and they have come up with a product to get loans to those people. They are providing what consumers want in the same way that we are, and I think there is a lot of room for that," he said.

To check out more loans from peer to peer lenders in Australia, visit our P2P comparison hub or check out more personal loan deals below.