I had an idea after observing the quality and cleanliness of ride share vehicles: Suppose that Uber, Lyft, etc instituted a car-purchase plan for onboarding divers? The company finances the cars, at a presumably excellent interest rate, then contracts carless applicants such that the car they give to the new hire is owned by the company, monthly payments TO OWN IT (critical point) come out before payment to the driver (tax free? investigate), and as a result, the driver operates a safe, beautiful, clean, newish car!
Should the driver leave the service, it’s a simple repo.
Should the driver stay, they own a car free and clear at an interest rate an individual would never enjoy.
Some early hurdles:
-Why would the company assume the risk of intermediary, ‘stewardship’ ownership if the end benefit is driver ownership (as compared to, for example, a lease arrangement like cab companies)? My answer: For +2-3% add-on interest. Still far better net interest rate for the driver that needs this benefit. And it opens a powerful incentive benefit to quality potential employees: New car, for FAR less than they would pay, in 3-5 years… plus all the currently-normal income and tips.
-What about thieves, wreckers, vandals, etc? Well, while the vehicle is under a stewardship ownership by the company, it can carry the comprehensive (theft, act of God, rando-shit) insurance… again, at a phenomenal discount due to economy of scale. The driver handles liability and collision. (I just realized that the company could ALSO negotiate significantly affordable group rates for some or all of the drivers, as another benefit to onboarders.)
So… GMAC financing model + ride share contacting model + credit union risk-sharing model = profit…?